Godrej Capital eyes 2-fold AUM rise by FY28, rules out capital infusion

Business Standard

3 days ago

Over the next two years -- FY27 and FY28 -- it plans to nearly double the AUM to ₹50,000 crore, its managing director and chief executive Manish Shah said
Non-bank lender Godrej Capital's assets under management have grown to about ₹18,000 crore.
Press Trust of India Mumbai
Non-bank lender Godrej Capital's assets under management have grown to about ₹18,000 crore, and the company is targeting to close FY26 at over ₹25,000 crore, a top official has said.
Over the next two years -- FY27 and FY28 -- it plans to nearly double the AUM to ₹50,000 crore, its managing director and chief executive Manish Shah told PTI.
The company, in which parent Godrej Industries owns over 90 per cent stake, has sufficient capital right now as most of the capital committed by the group has already come in, he said.
"Until such time as we list, the capital will come from the group. Most of it we have already received. We don't need a lot more capital over the next few years," Shah said.
The parent firm has infused an additional Rs 285 crore into the company to increase its stake by 1.41 per cent to a total of 90.89 per cent.
Shah said the company is also delivering profits now, which can be reploughed back into the business for asset growth, but made it clear that the ultimate aim of the company is to list on exchanges like its fellow group companies such as Godrej Properties.
At present, about Rs 3,000 crore of assets, or about a sixth of the overall AUM, has been sourced from group companies, Shah said, adding that this reliance will keep going down over time.
Godrej Capital is looking at entering into the supply chain finance segment, and this is where it may go into fellow group companies for help in sourcing customers looking for finance, he said.
As per a recent regulatory disclosure, its consolidated income grew to Rs 1,620 crore in FY25, from Rs 889.14 crore in the year-ago period.
Shah, who was speaking on the sidelines of a company event to announce a partnership with customer relationship management company Salesforce, said it is very difficult for businesses to get the technology architecture right.
Service of the customer should be the first motivation while embarking on a technology journey, he said, adding that a right balance by keeping in mind requirements like data privacy can ensure a win-win for all stakeholders.
It is taking Salesforce's help to streamline its front end used by the customer facing executives, Shah said, adding that the core system on which the company runs remains intact.
Salesforce will be helping Godrej put the necessary digital lending infrastructure which will make loan processing faster and improve the customer experience, the CRM company's president and chief executive for south Asia Arundhati Bhattacharya said.
Replying to concerns on AI taking up jobs, Bhattacharya said Indians should not resist such a technology transition but leap into it instead.
She said there will be some pain as AI's adoption increases, but added that she does not believe AI will lead to less jobs. However, the nature of jobs may undergo a change, the career SBI banker who joined Salesforce after retiring as chairman, said.