Godrej Capital Targets Aggressive Growth in Affordable Housing and SME Lending

Godrej Capital, the financial services arm of the Godrej Group, is poised to enter the affordable housing loan market as part of its ambitious growth strategy. The company aims to increase its assets under management (AUM) to ₹17,000 crore by the end of 2024, driven by a strategic focus on small and medium enterprises (SMEs), micro, small, and medium enterprises (MSMEs), and home loans.

Godrej Capital’s Managing Director, Manish Shah, outlined the company’s expansion plans, which include doubling its AUM to ₹30,000 crore by March 2026 and reaching a long-term goal of ₹50,000 crore by March 2028.

To support its growth in the affordable housing segment, Godrej Capital will initially launch its products in one or two states before expanding its reach based on market response. This initiative aligns with the government’s ‘Housing for All’ mission and aims to provide crucial financing options for lower-income homebuyers.

In addition to affordable housing, Godrej Capital is actively involved in SME lending. The company has recently launched unsecured business loans in 31 markets, targeting MSMEs and building a portfolio of ₹2,000 crore in this segment.

Leveraging its group firm Creamline Dairy’s ecosystem, Godrej Capital offers loans to dairy farmers to help them scale their businesses. This initiative has provided 25 loans to date, demonstrating the company’s commitment to supporting local entrepreneurs.

Regarding its future plans, Godrej Capital has indicated its intention to conduct an initial public offering (IPO) within the next three-and-a-half years. The company’s strong financial performance, with a profit of ₹55 crore in 2023 and a projected profit before taxes of ₹175 crore for the current financial year, underscores its growth potential and attractiveness to investors.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.