Kolkata, Sep 5 (IANS): Magma Fincorp Limited, one of the largest asset financing non-banking financial companies (NBFCs) in India, is focusing on western and southern parts of the country to achieve 50 percent business growth.
"We are aiming at substantial growth in western and southern India this fiscal. We will be focusing on states like Maharashtra, Gujarat and Tamil Nadu. The company will be working on expanding networks in these regions," Magma Fincorp vice-president Sumit Mukherjee told IANS.
The NBFC is involved in retail financing in segments like construction equipment, cars, commercial vehicles, small and medium enterprises, tractors and used commercial vehicles. Currently, it has 171 branches in 20 states, with a customer base of 236,000.
"The company disbursed loans worth Rs.5,415 crore in the last financial year. We are expecting a growth of 50 percent in the business this fiscal," Mukherjee said.
He said the company was focusing on Maharashtra, Gujarat and Tamil Nadu in this financial year.
"We have to expand our market. These are large states. These states have good geographical potentiality," he stated.
Mukherjee said the Kolkata-headquartered company was aiming at increasing its market share in all segments in India.
"We are very focused on growing our market share in all segments. We are planning for equal growth in all segments. Our target for this year will be to achieve across different segments same proportion of business as we did last year," he said.
The company currently has 8 to 9 percent market share in construction equipment finance, over three percent in car finance, around six percent in commercial vehicle finance and over four percent in tractor finance.
"Construction equipment segment contributes 18 percent of our total business. The company currently has 8 to 9 percent market share in this segment. We expect that at the end of this fiscal it would be 11 to 12 percent," the vice-president said.
The company will expand its distribution network by opening new branches in rural and semi-urban areas to address new markets.
Magma plans to add 25 more branches across the country this fiscal, out of which 8 to 10 will be in Maharashtra, Gujarat and Tamil Nadu.
On the company's long-term growth target, he said: "Currently there is volatility in the market. There is substantial slowdown in commercial vehicle sales. So, in these circumstances, it is very difficult to draw a five-year plan."
"Hopefully, things will recover in a couple of months. We expect that in festive season sales volume will increase," he added.