One of the leading non-banking, finance companies we at Mahindra Finance are largely focused on the rural and semi-urban sector providing finance for utility vehicles, tractors and cars.
While we predominantly finance M&M UVs and tractors, we have continued to expand our services to non-M&M vehicles as well.
Our goal is to be the preferred provider of retail financing services in the rural and
semi -urban areas of India.
Our strategy is to provide the largest range of financial services to our consumers through our extensive network of branches, spread out over India.
We would like to position ourselves as the lucrative option between the organized banking sector and the money lenders, providing our customers with a mix of personalized, flexible and efficient lending services.
We are a subsidiary of the prestigious Mahindra & Mahindra (M&M) group, which has 60 years of experience in the Indian market, and is among the top 10 industrial houses in India. It is the only Indian company among the top five tractor manufacturers in the world, and is the market leader in multi-utility vehicles in India.
Our chief promoter company is Mahindra and Mahindra (M&M). M&M’s main business is the manufacture and sale of utility vehicles, light commercial vehicles, three-wheelers and tractors. It is the market leader by sales of tractors in India (Source: CRIS INFAC).
In November 2003, in recognition of its global competitiveness in terms of cost and quality, M&M received the Deming Prize awarded by the Japanese Union of Scientists & Engineers. M&M is the first tractor manufacturer in the world to receive this prize.
The Company has a non-executive Chairman and more than one third of the total numbers of Directors are independent. The number of non-executive Directors is more than half of the total number of Directors.
We provide financial loans to tractors, utility vehicles, light commercial vehicles, cars, two wheelers, three-wheelers and used vehicles.
Our services include Mutual Fund distributions and financial advisory services.
In May 2004, as a supplement to our lending business we started an insurance broking business through our wholly owned subsidiary, Mahindra Insurance Brokers Limited (MIBL).
We have had a peerless financial record since our inception. A few highlights of our record are:
Our total assets grew by 59% from Rs.3,115 crore on 31 March, 2005 to Rs.4,951 crore on 31 March, 2006.
The cumulative number of customer contracts increased by 39% from 336,819 in 2004-05 to 467,977 in 2005-06.
Our total income grew by 47% from Rs.405 crore in 2004- 05 to Rs.596 crore in 2005-06.
Profit after tax (PAT) grew 32% from Rs.82 crore in 2004- 05 to Rs.108 crore in 2005-06.
Capital Adequacy Ratio increased from 17.8% to 18.2 %.
The Company’s healthy growth in 2005-06 was another step towards accomplishing its long term goal of becoming a preferred provider of retail financial services all over rural and semi-urban India.
During 2005-06, in order to raise capital to fund long term growth and to broaden the ownership base, Mahindra Finance made an Initial Public Offer (IPO) of 20 million equity shares of a face value of Rs.10
After much deliberation, the issue price was finalized at Rs. 200 per Equity Share, being the upper end of the price band.
The shares were allotted on 9th March, 2006 and were listed on National Stock Exchange of India Limited and Bombay Stock Exchange Limited on 17th March, 2006.
As on 31st March, 2006, the Company’s total assets was Rs.4,951.27 crore up by 59.0% from a year earlier.
During the year, CRISIL Ltd. re-affirmed the rating of “AA+/ Stable” to Mahindra Finance’s long-term Non-Convertible Debentures. The rating of “AA+/Stable” indicates high degree of safety with regard to timely payment of interest and principal on the instrument.
Mahindra Finance has recently expanded its services to Mahindra Insurance Brokers Limited. (MIBL).
Mahindra Finance has already started distributing insurance products in rural and semi-urban India through its subsidiary Mahindra Insurance Brokers Limited.
We have also recently commenced our mutual fund distribution business and are exploring opportunities of entering housing loans and personal loans in rural and semi-urban markets.
We believe that the growth of our interactive, people-driven business model depends on the building of strong, long-term personal relationships.
This coupled with superior knowledge of rural markets, and the ability to tailor products, positions the company well to continue to meet rural and semi-urban credit needs and provide competitive, flexible and speedy lending services.
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