Centrum buys arm of L&T Fin
Centrum Financial Services, the NBFC arm of the Centrum group, on Wednesday said it has signed an agreement to acquire the supply chain finance business of L&T Finance, for an undisclosed sum.
- Published 6.09.18
Mumbai: Centrum Financial Services, the NBFC arm of the Centrum group, on Wednesday said it has signed an agreement to acquire the supply chain finance business of L&T Finance, for an undisclosed sum.
A subsidiary of L&T Finance Holdings, L&T Finance has a loan book of approximately Rs 800 crore, a staff strength of 50 professionals and operates out of 16 cities in the country.
L&T Finance's supply chain vertical provides working capital finance to entities that are suppliers to large industrial manufacturers and original equipment manufacturers.
Commenting on the acquisition, Centrum Financial Services managing director and chief executive officer Ranjan Ghosh said the supply chain finance business is a fast growing area and the company is looking to increase its presence in this space.
"This acquisition will be a natural fit in our portfolio and will be a profitable accretive business in the first year itself," he added.
Ghosh pointed out that it will also give the company lucrative cross-sell opportunities. Centrum is now planning to infuse additional capital into the business.
The Centrum Group, through its NBFC, offers commercial finance, structured credit, supply chain and real estate finance to SMEs and MSMEs. Its other lending services include affordable housing finance and micro finance.
In November 2017, it acquired the micro finance business of FirstRand Bank India and took on board its 300 employees.
Virender Pankaj, of L&T Financial Services (LTFS), said the move to divest the supply chain finance business is in line with LTFS's objectives of concentrating on core strengths and retailisation of overall lending book.