Mahindra Finance, India's leading non-banking finance company, has taken a step further in the global market. Mahindra has chalked out a strategy to make Sri Lanka a preferred market. Mahindra Finance has bought a 58.2 per cent stake in Sri Lankan company Ideal Finance for 2 billion Sri Lankan rupees. It is a move that will allow Mahindra Finance to gain a foothold in the growing financial services market in Sri Lanka. Let us tell you that Mahindra Finance had entered into a contractual agreement with Ideal Finance in 2019. It agreed to acquire a 58 per cent stake by March 2021, which both the companies, by mutual consent, have extended till September 2021. Mahindra Finance proposes to recreate its business model with this investment in Ideal Finance, a leading Sri Lankan finance company.
Ideal Finance will focus on new products along with old financial products.
According to Ramesh Iyer, VC and MD, Mahindra Finance, Ideal Finance provide a range of financial products to Sri Lankan consumers. These include automobile loans, agricultural equipment loans, gold loans, business loans, durable consumer loans, personal loans, etc. The Ideal Finance Company will continue to offer these financial products even after the acquisition of Mahindra Finance. It may also look at providing any additional financial services product based on the needs of the customers. Iyer said Mahindra Finance has no plans to increase its stake beyond 58.2 per cent.
In contrast, Ideal Finance will now focus more on vehicle finance, a customer can finance even a tractor or any other vehicle too. Because the company already offers a wide range of financial products like Automobile & Agriculture Equipment, Gold Loan, Business Loan, Consumer Durable Loan, Personal Loan etc.
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Sri Lankan market experience will come to use in future.
VG Ramakrishnan, Managing Director, Aventum Advisors, said that Mahindra Finance is intelligent to work in markets like Sri Lanka. There are many relations between the Domestic market and the Sri Lankan market. Moreover, Mahindra Finance will pave the way to work in markets like Bangladesh and Nepal in future.
Mahindra Finance's special focus is on business opportunities in other countries.
Ramesh Iyer, VC and MD, Mahindra Finance, says Sri Lanka has a well-regulated and mature financial services market, growing steadily for many years, barring the pandemic years. Therefore, we are hopeful that the market will pick up the pace again once we overcome this pandemic. Regarding other neighbouring markets, he said that our company constantly studies various opportunities and different strategies are made when opportunities arise.
Go through about Mahindra Finance.
Mahindra Finance by Mahindra & Mahindra Financial Services Ltd. is one of the leading Non-Banking Finance Companies. The company's customers come from rural and semi-urban areas. The company has 7.3 billion customers and over US$1.1 billion in assets under management. The company is a leading financier for Vehicles and Tractors, provides loans to SMEs, and provides Fixed Deposits. The company has more than 1,380 offices and reaches out to customers in 3 lakh 80 thousand villages and 7 thousand cities. It is an integral part of the Mahindra Group, one of the largest business houses in the country.
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