Shriram Transport Finance Company Ltd. (STFC), the flagship company of the Shriram Group, has its significant presence in consumer finance, life insurance, general insurance, stock broking and distribution businesses. Incorporated in 1979, Shriram Transport is today the largest NBFC in the country providing holistic finance for the entire commercial vehicle industry, seeking all along to partner small truck owners for every possible need related to their assets.
With 530 branch offices spread all over the country, the Mumbai-based STFC manages assets more than Rs. 49,000 crores and has a customer base exceeding 10,00,000. In the last 30 years, it has helped replace nearly 20 lakh trucks by providing affordable acquisition credit to small truck operators.
The STFC success lies mainly in its customer-friendly approach. This was emphasized by Mr. Umesh Revankar, Managing Director & CEO, STFC, in his recent interview to MOTORINDIA. He said the company goes all out to support the customer and acts as a catalyst by providing him various additional services like bill discounting, lending money for purchase of major inputs like tyres, etc., particularly during a recessionary phase. This has made STFC the much-admired NBFC in the country.
He further said that, with its special focus on commercial vehicle financing, STFC mainly extends support to small fleet operators, a segment that offers a huge potential to be further tapped. So far the company has earned over 20 lakh satisfied customers, of whom 80 per cent are used vehicle owners.
The company has so far been playing a dominant role in the southern, western and northern regions and now it is strengthening its operations in the eastern region. Registering a CAGR of 25 per cent in the last five years, it hopes to fare extremely well despite the current overall slowdown.
Referring to the prospects of Shriram Automall, Mr. Revankar observed this new concept which has been well accepted offers the choice of the right vehicle for the customer. Within a short span, Shriram Automall India Ltd. (SAMIL) has so far been able to open 22 own outlets pan-India, apart from conducting vehicle exchange at different locations in the country.
Commenting on the current slowdown in the commercial vehicle segment, he pointed out that the trend would continue for quite some time. The only solution lies in further expansion of infrastructural facilities related to roads, mining and coal.
However, smaller commercial vehicles continue to register steady growth due mainly to improvement in the rural road infrastructure for which the Government is spending a lot. Further, smaller CVs offer extra benefits such as better fuel efficiency, higher load capacity, last mile connectivity etc. Demand for medium and heavy commercial vehicles could pick up after the country experiences a favourable monsoon, he added.
Mr. Umesh Revankar holds a Bachelor’s Degree in Business Management from Mangalore University and MBA in Finance. He had attended Advanced Management Program at Harvard Business School. Mr. Revankar started his career with Shriram Group as an Executive Trainee in the year 1987. He is with Shriram Group for the last 26 years and possesses extensive experience in the financial services industry. He has Grown with the organization and at present he is Managing Director & CEO of Shriram Transport Finance Company Ltd. During his stint with the Group, he has shouldered various responsibilities and worked in several key roles of business operations. He is the President of Federation of Indian Hire Purchase Association (FIHPA).