Godrej Capital, the financial services arm of the Godrej Group, is set to launch its affordable housing loan segment by December. Managing Director Manish Shah announced plans to grow its assets under management (AUM) from the current Rs 13,000 crore to Rs 17,000 crore by the end of this financial year, following an AUM of Rs 10,000 crore in FY24. The company aims for further expansion, targeting Rs 30,000 crore by March 2026 and Rs 50,000 crore by March 2028.
The company’s strategy focuses on the small and medium enterprises (SME) sector, micro, small, and medium enterprises (MSME), and home loans. Godrej Capital’s entry into the affordable housing loan market aims to address the needs of lower-income homebuyers, with initial offerings planned in one or two states before broader regional expansion based on customer response.
This initiative aligns with the government’s ‘Housing for All’ mission, particularly through schemes like the Pradhan Mantri Awas Yojana, and is expected to provide essential financing options for affordable housing, enhancing the company’s growth prospects.
In the SME sector, Godrej Capital has initiated a financing program for dairy farmers, having issued 25 loans thus far. This program leverages its group company Creamline Dairy, which sources milk from local farmers, helping them scale their businesses through additional livestock purchases.
Regarding future plans, Shah stated that Godrej Capital intends to pursue an IPO within the next three-and-a-half years. As a mid-layer non-banking financial company (NBFC), it is not bound by the Reserve Bank of India’s three-year listing requirement for upper-layer NBFCs.
On the profitability front, the company, which began operations in 2020, reported a profit of Rs 55 crore in FY24. For the current financial year, it aims for a profit before tax of Rs 175 crore, reflecting its strong growth trajectory.
Starting with operations in four cities, Godrej Capital has expanded to 30 cities and plans to increase its presence to 40 cities across 180 locations. The company introduced unsecured business loans in 31 markets in July 2023, currently managing a portfolio worth Rs 2,000 crore in this segment.