_20240924232709_original_image_28.webp)
Godrej Capital is gearing up to enter the affordable housing loan segment, with plans to grow its assets under management (AUM) to Rs 17,000 crore by the end of 2024 and Rs 30,000 crore by the year 2026. "We are on a path of rapid expansion," Manish Shah, Managing Director (MD) and Chief Executive Officer (CEO), Godrej Capital. “Our goal is to increase our footprint across the financial services spectrum and become a leading player in the market.”
As part of its expansion, Godrej Capital will make its foray into the affordable housing loan market by the end of the year. "Our focus will be towards smaller loan amounts, aimed at meeting the needs of affordable homebuyers," Shah said, indicating the company's efforts to tap into the growing demand for affordable housing in India.
The company is currently operating in 11 cities and has plans to enter more regions, including tier-1 and tier-3 cities, where there is a rising demand for financial services. "We want to be where the growth is happening. By 2026, we aim to have a presence in more than 30 cities, making financial services more accessible to a larger customer base," Shah stated.
As part of this expansion, Godrej Capital is also exploring partnerships and collaborations that can enhance its service offerings and reach. "We are looking at strategic tie-ups that will allow us to deliver better value to our customers," said Shah, indicating that the company is not only focused on growing its balance sheet but also on creating a robust ecosystem for delivering financial solutions.
Dairy Initiative
Godrej Capital is taking a step in helping small farmers and milk collection agents by piloting a lending programme through its dairy business, Creamline Dairy, based in Hyderabad. This initiative seeks to establish how it can leverage its operations in the dairy industry, and offer credit to those who are the backbone of milk production, helping them scale up their operations and improve livelihoods.
"We believe there is huge potential in supporting small milk agents and farmers who face challenges in accessing traditional credit facilities," said Shah. “Our pilot project with Creamline Dairy is designed to test how lending can help these individuals increase their milk production, whether it’s by buying more cows or expanding their infrastructure.”
Shah elaborated on the intention behind the project, stating that Godrej Capital is aiming to understand the nuances of the dairy sector and how financial support can be structured to make a meaningful impact. "It's still early days for this initiative," he added, “but we are optimistic about how this could become a crucial part of our future strategy if the pilot proves successful.”
Addressing Financial Inclusion In The Dairy Sector
The strategy of the pilot programme is to address one of the most pressing problems that small farmers and milk agents encounter which is access to credit. A large number of these people can increase their milk production but are unable to do so because they are financially stagnated. The proposed expansion of lending services through Creamline Dairy is expected to generate a solid and lasting economic arrangement surrounding lending practices that will not only reach out to the farmers but also provide the necessary support needed to improve the dairy value chain as a whole and broaden the prospects for success for the Godrej Capital.
"By providing access to finance, we are essentially enabling small farmers to grow their businesses, improve productivity, and contribute more significantly to the dairy sector," explained Shah. This will help in stabilising the milk supply chain, ensuring that these farmers have the resources they need to thrive, Shah added. He emphasised that the company is carefully studying the outcomes of the pilot phase, as they want to ensure the lending model is both effective and scalable.
