Godrej Industries Ltd (GIL) on Monday announced the launch of Godrej Capital (GCL), the financial services arm of the group.
GCL is the holding entity for Godrej Housing Finance, a housing finance company and Godrej Finance Ltd, which is an NBFC (Non-Banking Financial Company).
The Group plans to invest Rs 5,000 crore of equity over the next few years into the financial services venture.
"We believe there is clear logic and path in creating a strong position in this (financial services) space and that's why we are now investing in it. We now feel ready and have the appetite to invest."
"We see it as a big opportunity and will go after it with a lot of intent over the next few years," Godrej Capital's Chairman Pirojsha Godrej, said.
He further said that the group has committed to invest Rs 1,500 crore into its financial services arm and expects the business to require a total of Rs 5,000 crore equity investments by 2026.
"On equity front, we have already committed and by the end of the month, we will have Rs 1,500 crore of the equity invested. This is all coming from Godrej Industries' balance sheet. For the remaining Rs 3,500 crore that we will require by 2026, we will seek Godrej Industries' board approval. We do expect to infuse most of that capital from the group," he said.
The company aims to build Rs 30,000 crore of balance sheet by 2026, a release said.
"We envision Godrej Capital becoming a new-age, leading retail financial services institution in the years ahead," GCL's Managing Director and CEO Manish Shah, said.
The company will continue maintaining focus on the growth of secured loans consisting of home loans and Loans Against Property (LAP).
GCL currently has its footprint across Mumbai, Bengaluru, Delhi-NCR, Ahmedabad and Pune and will soon be operational in six new cities - Jaipur, Chandigarh, Hyderabad, Chennai, Indore and Surat.Godrej Industries launches Godrej Capital; commits investment of Rs 1,500 crore - Moneycontrol
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