Magma Aims 40% Growth in Punjab, HP and Haryana

Ludhiana, September 26, 2012: Magma Fincorp Limited, one of India’s leading asset finance companies today announced its ambitious growth plans for Punjab, HP and Haryana for FY 13.

The company, which disbursed Rs 696 crore in Punjab, HP and Haryana last year, plans to romp up disbursements by another 40% in retail loans in FY 13. Magma, headquartered in Kolkata, has 20 branches in the state and plans to open another 1 new locations, taking the tally to 21, making it among the best networked retail finance company in the state with deepest presence.

Addressing a press conference here today, Sanjiv Jha, Zonal Sales Manager, Magma Fincorp Limitedsaid, “We will continue with our focus on providing asset finance to the economically disenfranchised segment in Punjab and expect to further grow in the states. This will help in strengthening our market share in each of the segments. For this, we would also increase our manpower strength to suit the challenge of high growth trajectory.”

Buoyed by the growth it witnessed across all product categories in the last financial year, Magma has a focused growth plan charted out for the state. The company grew a staggering 36% in FY 12 over FY11. Tractor, Car and SME finance posted a healthy growth of 150%, 65% and 57% respectively.

The aggressive marketing strategy adopted by the company helped in attaining this phenomenal growth rate and played a major part in the market expansion drive for the company in this region. Company’s focus on rural markets also emphasises it’s motto of bringing equality of opportunity to the economically disenfranchised.

In the first quarter of the current financial year, the company has already experienced an overall growth of 44%, compared to the corresponding period of the last financial year. Car finance, SME finance and Tractor finance witnessed a growth of 56%, 97% and 119%, respectively.

Magma has 20 branch offices in Punjab, HP and Haryana in Rohtak, Ambala, Karnal, Yamuna Nagar, Hissar, Sonipat, Sirsa, Bhatinda, Baddi, Chandigarh, Mandi, Patiala, Sangrur, Shimla, Ludhiana, Moga, Jallandhar, Khanna, Pathankot and employs over 644 people in the state.

The new branch will be opened in Zirakpur, Chandigarh during the current financial year.

“The primary sales of assets have witnessed robust growth in the past several quarters and we hope the same would continue. This augurs well for our business. With the development of infrastructure further, we hope our products will continue to do well as majority of them cater to the growth in rural and semi urban markets”, added Jha.

He also said that the company, apart from consolidating its position for its core products like car, commercial vehicle and construction loans in the market, will also focus to grow the higher yield products such as Suvidha, Tractor and SME Loans, which will contribute significantly in the company’s business.

Magma Fincorp Limited is a non-deposit taking non-banking finance company (NBFC), registered with the Reserve Bank of India (RBI) as an Asset Finance Company. The Company, having started operations over two decades back, is listed on the Bombay Stock Exchange Limited and the National Stock Exchange in India.

Magma provides a bouquet of financial products including financing of Utility Vehicles and cars, commercial vehicles, construction equipments, tractors and SME loans.

Magma has a dedicated base of around 3.3 lakh “live” customers and has assets of Rs 13,750 crore under management.

The company has 229 branches in 20 states and 1 union territory and employs about 6,500 people.

After addressing the press conference, Sanjiv Jha, Zonal Sales Manager, Magma Fincorp Limited also spoke to City Air News (Watch it in a video clip with this copy).