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Sundaram Home Finance, a wholly owned subsidiary of Sundaram Finance Ltd, has outlined plans to scale up its presence in Telangana as part of its wider South India expansion strategy. The company, which entered the Emerging Business segment two years ago, aims to disburse INR 120-150 crore over the coming year in the State. Executives indicated earlier this week that the Chennai-based lender has already grown this segment to over 50 branches, largely across Tamil Nadu, and now intends to diversify beyond its home market. Management highlighted opportunities among Tier 3 and Tier 4 entrepreneurs and in affordable housing.
Sundaram Home Finance, the wholly owned subsidiary of Sundaram Finance Ltd, has stated that it intends to disburse INR 120-150 crore in Telangana over the next twelve months under its Emerging Business segment, marking a focused push into the State as part of its plan to widen its footprint across South India. Advertisement
The lender, headquartered in Chennai, is moving into Telangana as the next step in its regional expansion strategy. Since diversifying into the Emerging Business segment in late 2022, the company has grown to more than 50 branches, most of which are situated in Tamil Nadu, and is now preparing to extend its reach beyond the State.
Managing Director D Lakshminarayanan said earlier this week that the company viewed its Telangana entry as another stage of its strategic rollout across South India, following earlier expansions in Andhra Pradesh and Karnataka earlier this year. He conveyed through the company's statement that small entrepreneurs in Tier 3 and Tier 4 towns in Telangana were preparing for their next growth phase, creating favourable conditions for small-ticket lending.
Detailing its initial plans, he mentioned that the lender intended to set up about 10 new Emerging Business branches in Telangana, alongside the targeted disbursement of INR 120-150 crore over the upcoming year. He also noted that the firm saw significant prospects in affordable housing across smaller towns in the State and believed it could access new avenues of demand in the low to mid-income housing category.
During the first six months of the current financial year, which ended in the past week, the Emerging Business segment recorded disbursements of INR 229 crore, amounting to a three-fold rise compared with the same period in the previous financial year. Reflecting on the underlying growth drivers, Lakshminarayanan explained that after consolidating a strong base in Tamil Nadu over the past three years, the company was now looking at Andhra Pradesh, Karnataka and Telangana to support the next phase of its expansion in the segment, while continuing to strengthen its operations in Tamil Nadu.
Source - PTI
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