Godrej Capital eyes Rs 50,000-cr AUM by 2028

Chennai: Godrej Capital, the financial services arm of the diversified conglomerate Godrej Group, has planned to grow its assets under management (AUM) to Rs 50,000 crore by 2028, a top official said on Thursday.

The company which commenced operations in 2020 achieved break-even in the second quarter of the current financial year, company Managing Director and CEO Manish Shah said here. To achieve the balance sheet of Rs50,000 crore by 2028, the company would require an additional Rs4,000 crore capital, Shah noted. “We received the license (to launch operations) in October 2020. We want to grow AUM to Rs50,000 crore by 2028. This year, we expect to reach Rs10,000 crore that is by March 2024,” he told reporters.

“The company received around Rs2,000 crore as capital from the holding company of the Group. Every year, we require about Rs1,000 crore as equity capital. To reach Rs50,000 crore AUM, we will require about Rs4,000 crore,” he said.

By 2026, Shah said, the company aims to manage AUM of Rs30,000 crore, and the key focus areas would be 'MSMEs and home loan' business segment. By 2028, this AUM would be scaled up reach to Rs50,000 crore.

To a query, he said the current balance sheet of the company was Rs 7,700 crore of which Rs 4,000 crore comprises loans disbursed to micro, small, and medium enterprises segment while the remaining was home loans. Shah said the company achieved 'break-even' in the second quarter (July-September) but declined to reveal the figures. The micro, small, and medium enterprises which generate revenue between Rs 5 crore and Rs 50 crore account for majority of the business for the company, he said.