New Delhi, Sept. 5 (PTI): Hardly a year after its takeover of ITC Classic Home Finance, K.K. Birla group company Birla Home Finance is eyeing more acquisitions to expand its business to over Rs 1,700 crore by 2006-07.
“We are on the lookout for acquiring home finance companies and assets and have plans for both organic as well as inorganic growth,” Birla Home Finance chairman H. S. Bawa said.
The 50:50 joint venture between K.K. Birla group’s Chambal Fertiliser & Chemicals and German housing major BHW Holdings AG acquired ITC Classic Home Finance in 2000. It plans to open 12 new branches in major cities this year, besides 10 operational branches in Calcutta, Bangalore, Chandigarh, Jaipur, Bhopal, Hyderabad, Ahmedabad, Chennai, Cochin and Delhi, while setting up 40 regional development offices.
This is part of the roadmap to emerge as one of the leading private players in the next five years with a business (loan disbursement) of over Rs 1,700 crore. To fund the expansion, the company plans to expand its equity base to Rs 200 crore by 2004-05. “The Birla group and the German partner would infuse Rs 25 crore each in Birla Home Finance this fiscal to increase the capital base to Rs 100 crore by March 2003,” he said.
BHW inked the joint venture agreement in September 2000 with an initial equity investment of Rs 25 crore.