Godrej Capital to step up presence in TN

Godrej Capital Limited, a subsidiary of Godrej Industries, has nearly doubled its assets under management (AUM) in Tamil Nadu to about Rs 1570 crore and is targeting Rs 2800 crore by FY27, driven by demand from MSMEs (micro,small and medium enterprises)  in the state.

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Addressing a press conference in Chennai, Manish Shah, MD and CEO, Godrej Capital, said that the company’s overall AUM stood at about Rs 27,500 crore at the end of the financial year, up from around Rs 17,000 crore a year earlier, reflecting a growth of about 60 per cent.

Tamil Nadu had emerged as a key market, accounting for roughly 8 per cent of the company’s portfolio, he said. Most of the lending in the state was routed through its non-banking financial company subsidiary (NBFC) arm, Godrej Finance, which focuses on small business financing, he added.

Approximately Rs 1100 crore of the total AUM in Tamil Nadu was allocated to secured loans, while around Rs 450 crore was designated for unsecured working capital lending, he said.. 

“Tamil Nadu remains one of India’s most industrialised states, with MSMEs forming a key part of its economy. The sector contributes significantly to industrial output and employment, with an estimated 35 lakh enterprises across manufacturing and services. Chennai has a strong lending ecosystem spanning automobiles, electronics, IT and manufacturing, supporting consistent financing demand across segments,” the company said. 

Demand had been broad-based across manufacturing, services and trade segments. However, the company had adopted a cautious approach towards segments exposed to global uncertainties, particularly export-orientated businesses, Manish said.

The company said that it currently operated eight branches across seven cities in the state, including Chennai, Coimbatore, Madurai, Salem, Hosur, Krishnagiri and Tiruchirappalli, and planned to expand this to 12 branches in the near-term while widening its presence across Tamil Nadu over the next two years.

The company was also seeing steady demand beyond metro cities, with smaller urban centres supporting its expansion into newer locations, he said. 

Godrej Capital, he said, planned to expand its presence from around 100 locations to over 200 in the next two years, alongside scaling its AUM to Rs 50,000 crore.

It was also looking to introduce new lending segments such as supply chain financing and expand its digital lending capabilities as part of its growth strategy, he said.

The firm continued to focus on women entrepreneurs through its ‘Arohi’ initiative, with Tamil Nadu emerging as a key contributor. Around 12 per cent of its loans in the state had been extended to women borrowers, Manish said.

 

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