Godrej Industries Launches Financial Services Arm Godrej Capital
Godrej Capital aims to build a balance sheet of Rs 30,000 crore by 2026.
Godrej Industries Ltd. has announced the launch of its financial services arm to scale up operations in the segment.
Godrej Capital Ltd. is a subsidiary of Godrej Industries and is the holding entity for Godrej Housing Finance (mortgage lender) and Godrej Finance Ltd. (a non-banking financial company), according to an exchange filing. It aims to build a balance sheet of Rs 30,000 crore by 2026.
Godrej Industries, the filing said, has committed to infuse Rs 1,500 crore into its financial services venture and expects the business to require a total of Rs 5,000 crore of equity investment by 2026.
Godrej Capital currently has its footprint across all metropolitan cities—Mumbai, Bengaluru, Delhi-National Capital Region, Ahmedabad, and Pune—and offers digital-first products such as home loans and loans against property. The business aims to expand into Jaipur, Chandigarh, Hyderabad, Chennai, Indore and Surat this financial year.
Godrej Capital, according to the filing, will focus on growing its secured loans portfolio of home loans and loans against property. And to achieve its set targets, it will add 500 employees to its team in this fiscal.
Pirojsha Godrej, chairman at Godrej Capital, said the business started with home loans in select geographies in 2020. “[But] having seen strong customer acceptance of our offering, we are very optimistic about the prospects of our financial services venture and will be entering new markets and enhancing our reach across key target sectors and consumer segments.”
According to Manish Shah, managing director and chief executive officer at Godrej Capital, Godrej Housing Finance has successfully implemented digital-first approach through products such as “design your EMI and end-to-end contactless solutions”. “This has inspired us to grow our footprint and to broaden our service offerings to different customer segments through affordable housing loans and unsecured loans,” he was quoted as saying in the filing.
Godrej Finance held a non-banking finance licence since 1998 but was never active in lending business. In October 2020, the group launched its housing finance business that catered to only Godrej customers.