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Godrej takes new steps towards development in 2022

Godrej to enter the non-banking lending business.

According to a source familiar with the situation, the 124-year-old Godrej group is planning to join the non-bank lending market through its subsidiary Godrej Finance Ltd. According to an anonymous individual, the $4.1 billion company is likely to make an official announcement on Monday in this regard on Monday. Since 1998, when it was known as Ensemble Holdings and Finance, Godrej Finance has possessed a non-banking financial company (NBFC) license. However, it has never been engaged in the lending industry. 

The firm, which will have a $1,000 crore authorized share capital, would begin with non-mortgage loans to small businesses and loans against property, according to the source. It may eventually penetrate consumer lending, which is now dominated by Bajaj Finance Ltd.

Godrej Industries' To Raise Rs 750 Crore Via NCDsAccording to Arvind Singhal, chairman of Technopak Advisors, as the economy expands, the finance business will rise for all businesses. It has a presence in the home financing industry. It’s also in the consumer goods, appliances, and furniture industries. Given the available funding, the organization can create a strong book. According to Singhal, the brand stands for trust and respect, which would help them expand into the financial services industry. 

Godrej Housing Finance Ltd, which offers mortgage loans ranging from Rs 40 lakh to Rs 1 crore to Godrej Properties Ltd consumers, was launched in October 2020. As of March 2021, its capital adequacy ratio was 21.8 per cent, and as of December 2021, it had a loan book of 1,001 crores.

Following clearance from the Reserve Bank of India, Godrej Industries Ltd transferred its holdings in the Housing Finance and Godrej Finance to Capital (another subsidiary previously known as Pyxis Holdings) in July 2021, making it the group’s financial holding company. The company has been involved in investing and other NBFC operations, according to statistics from the Ministry of Corporate Affairs. Dealing in listed and unlisted stocks, as well as owning 0.6 per cent of its properties, are among the company’s investment operations.

Last year, the Industries signalled its interest in the finance industry. The corporation wants to develop and diversify its business operations. It thinks that our country has a lot of potential for home financing and non-banking finance, with a good return on investment. In India itself, the home financing industry has been steadily expanding. GHFL received its licence to operate as a home financing firm and has begun operations. Given the possibility in the home finance sector and the NBFC industry, it is advocated that the finance business be nurtured under the company’s umbrella as the group’s flagship enterprise. 

Godrej Industries Announces Launch Of Financial Services Arm Godrej Capital,  To Invest ₹1,500 Cr | MintAfter failing in previous businesses, brothers Ardeshir and Pirojsha established a lock-making firm in Mumbai in 1897, becoming the Godrej group. Since then, it has grown into a global company. Following a family disagreement between two brothers, the group’s companies were divided among the family’s next generation. Adi (79), a renowned industrialist, is the group’s chairman. Godrej Industries and Agrovet are both run by his brother, Nadir, Jamshyd N., their cousin, is the chairman of Godrej & Boyce Manufacturing Co. Ltd, which owns a lot of unoccupied property in Mumbai.

Pirojsha Adi oversees the publicly traded Properties company, which is developing some of Godrej & Boyce’s land as well as other projects around Mumbai. Nisaba, Adi’s youngest daughter, runs Godrej Consumer Products Ltd as chair and managing director. Tanya, Adi’s other daughter, works as its executive director and chief brand officer.

Godrej Industries announces the launch of the financial services arm Godrej Capital, to invest ₹1,500cr

Godrej Industries Limited (GIL) today announced the formation of Godrej Capital Limited, intending to increase its ambition in the financial services industry (GCL). In addition to broadening consumer demographics and developing new business lines, the company plans to extend its retail operations in six more cities this fiscal year. 

GCL is a subsidiary of the industry that serves as the holding company for Godrej Housing Finance (an HFC) and Godrej Finance Limited (an NBFC). GIL has pledged to spend 1,500 crores in the capital in the financial services segment, with a near-term goal of developing a 30,000 crore balance sheet by 2026. The firm is expected to require a total of 5,000 crores in equity investment by 2026.

The firm will continue to focus on protected loan growth, which includes house loans and Loans Against Property (LAP). In addition, the firm revealed in an exchange filing on Monday that it plans to increase its staff by 50% to about 500 workers this fiscal year to meet its commercial and geographic goals. Godrej Capital is now present in Mumbai, Bengaluru, Delhi NCR, Ahmedabad, and Pune and will shortly expand to include Jaipur, Chandigarh, Hyderabad, Chennai, Indore, and Surat.

Godrej Properties to invest Rs 7,500 cr in next 12-18 monthsIn 2020, they began offering house loans in a limited number of areas. They are quite excited about the possibilities of the financial services business, having witnessed great customer acceptance of their product, and will be entering new markets and expanding their presence across key target industries and consumer categories, said Pirojsha, the Chairman. Godrej Capital is investing in strengthening capabilities via personnel, technology, and analytics to support business development, according to the company. In Monday’s afternoon transactions, Godrej Industries shares traded 0.5 per cent higher at 490 rupees each on the BSE.

Godrej Industries, a subsidiary of the parent group, is India’s top oleochemicals company, producing over a hundred chemicals for usage in more than two dozen industries. The group was founded in 1897 and specialized in security systems and soaps. It is presently a $1.875 billion conglomerate. Chemicals, vegetables, and real estate are all part of the group’s business. It exports its goods to North America, South America, Asia, Europe, Australia, and Africa and offers international grade items. 

Previously, the company’s name was Godrej Soaps before merging with the Consumer Products & Residuals to form Godrej Industries. Due to the prominent Vikhroli complex, the company Industries (Chemicals Division) has a high level of operational flexibility to satisfy clients’ requirements with a short lead time. 

Edited by Prakriti Arora

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