Piramal Enterprises aims to double the AUM to INR 1.30 Lakh crore by FY28

· To add more 100 branches by end of FY24

New Delhi, September 5, 2023: Piramal Enterprises Limited (PEL) has unveiled its long term growth and profitability plan during its Investor Day. The company plans to grow its assets under management (AUM) by 2x to 1.2-1.3 lakh crore by FY28. The company expects to achieve this by growing its retail business making it 67% retail book and 33% wholesale book.

The company has a strong balance sheet and expects to reach a consolidated return on assets (RoA) of 3-3.3% by FY28 with a profit after tax (PAT) of INR 4,600 crore. The company is also looking to scale up its other value drivers, such as its alternatives business and insurance business.

PEL’s retail lending business surged by 57% in Q1 FY24 to reach INR 34,891 crore. This remarkable growth positions the retail lending segment as a pivotal driver of the company’s expansion strategy, emphasizing its strong foothold in the thriving “Bharat” market. Notably, 47% of the loans are extended to individuals from tier 2/3 towns, while 69% of applicants are self-employed, with 45% being female applicants. Addressing the fundamental issue of perceived inaccessibility to credit, PEL strives to provide financial solutions that empower individuals to achieve their goals and aspirations.

Mr. Ajay Piramal, Chairman, Piramal Enterprises Ltd., said, “Our journey post-DHFL acquisition has been positive, driving substantial growth. We have proudly positioned ourselves as the largest NBFC in the affordable housing space. We aim to double our loan book by FY2028 organically. Our relentless focus on retail lending has driven remarkable growth. With ‘high touch’ and ‘high tech’ strategies, we will ensure a balanced approach of expanding to underserved tier-2 and tier-3 areas, particularly in affordable housing.”

As on 30th June 2023, the company has a network of 423 branches, establishing a strong presence across the nation. The company plans to further expand by adding 100 more branches in FY 2024, resulting in a robust branch network of 500-600 across 1,000 locations. This expansion aims to reach customers in tier-II, tier-III towns, and the outskirts of tier-I towns. With a dedicated effort toward capacity building, the company boasts a strong workforce of 13,250 employees across all branches.

PEL’s Innovation coupled with the ‘high touch’ and ‘high tech’ strategy, has helped develop a multi-product retail-lending to enhance its ability to serve the people of Bharat. The company’s customer base now stands at over 3.3 million, offering an array of more than 13 loan products, including home loans, business loans, personal loans, used car loans and more.

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