The new vertical will finance electric vehicles, renewable energy products, and energy-efficient machinery, aiming to achieve a ₹5,000 crore Asset Under Management within 3-4 years while focusing on green investments and partnerships across India.
21 Dec 2024 | 3197 Views | By Autocar Professional Bureau
Shriram Finance Limited, the flagship company of the Shriram Group, has consolidated its green financing initiatives under a new vertical named Shriram Green Finance. This move aims to streamline its efforts in supporting sustainable solutions beyond electric vehicles and aligns with the company’s broader sustainability goals.
Shriram Green ...
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Shriram Finance Limited, the flagship company of the Shriram Group, has consolidated its green financing initiatives under a new vertical named Shriram Green Finance. This move aims to streamline its efforts in supporting sustainable solutions beyond electric vehicles and aligns with the company’s broader sustainability goals.
Shriram Green Finance will focus on building a robust green finance portfolio by funding electric vehicles (EVs), battery charging stations, renewable energy products, energy-efficient machinery, and other sustainable solutions. The company has set a target to achieve an Asset Under Management (AUM) of ₹5,000 crores for this vertical within the next three to four years.
The initiative will leverage Shriram Finance’s extensive customer base, particularly in semi-urban and rural areas, to expand the scope of green financing. The company also plans to raise both domestic and international funds focused on green investments for onward lending.
Speaking about the initiative, Umesh Revankar, Executive Vice Chairman of Shriram Finance Limited, stated, “The launch of Shriram Green Finance marks a step toward fostering sustainable growth and empowering stakeholders with financial solutions that support a greener economy.”
Y. S. Chakravarti, Managing Director and Chief Executive Officer of Shriram Finance Limited, emphasized the importance of sustainability as a key driver of progress. He remarked that the Green Finance vertical aligns with the company’s vision to support stakeholders in transitioning to a low-carbon economy.
The launch comes at a time when India’s EV sector is experiencing rapid growth, supported by government policies, technological advancements, and increased environmental awareness. Charging infrastructure, including fast-charging and battery-swapping technologies, is also expanding to meet the needs of EV users.
While the energy-efficient machinery segment in India is still in its early stages, the renewable energy sector has seen significant growth, driven by government initiatives and a focus on sustainability. These developments present opportunities for Shriram Finance to expand its green financing portfolio.
Initially, Shriram Green Finance will prioritize building its EV portfolio in Karnataka, Kerala, the National Capital Region (NCR), and Maharashtra. The company is engaging with original equipment manufacturers (OEMs) of EVs to establish long-term partnerships, ensuring accessible financing solutions for EV buyers.