Magma Aims 40% Growth in Andhra Pradesh

Sept. 29, 2012 - PRLog -- Hyderabad, 28th September, 2012: Magma Fincorp Limited, one of India’s leading asset finance companies today announced its ambitious growth plans for Andhra Pradesh for FY 13. The company, which disbursed Rs 848 crore in Andhra Pradesh last year, plans to romp up disbursements by another 40% in retail loans in FY 13. Magma, headquartered in Kolkata, has 23 branches in the state making it among the best networked retail finance company in the state with deepest presence.

Mr Dhrubashish Bhattacharya, Vice President, Magma Fincorp Limited said, “We will continue with our focus on providing asset finance to the economically disenfranchised segment in Andhra Pradesh and expect to further grow in the states. This will help in strengthening our market share in each of the segments. For this, we would also increase our manpower strength to suit the challenge of high growth trajectory.”

Buoyed by the growth it witnessed across all product categories in the last financial year, Magma has a focused growth plan charted out for the state. The company grew a staggering 29% in FY 12 over FY11. Tractor, Car and Suvidha finance posted a healthy growth of 27%, 55% and 106% respectively. The aggressive marketing strategy adopted by the company helped in attaining this phenomenal growth rate and played a major part in the market expansion drive for the company in this region. Company’s focus on rural markets also emphasises it’s motto of bringing equality of opportunity to the economically disenfranchised.

In the first quarter of the current financial year, the company has already experienced an overall growth of 26%, compared to the corresponding period of the last financial year. Car finance, Suvidha finance and Tractor finance witnessed a growth of 29%, 68% and 64% respectively.

Magma has 23 branch offices in Andhra Pradesh in Hyderabad (Ameerpet), Karimnagar, Kurnool, Mahabubnagar, Mancherial, Nalgonda, Nizamabad, Warrangal, Khammam, Nellore, Rajahmundry, Tirupati, Vijaywada, Ananthapur, Guntur, Ongole, Vizianagaram, Vishakhapatnam & Cuddapah and employs over 495 people in the state. The new branches have been opened in Hyderabad (Kukatpalli), Hyderabad (L B Nagar), Adilabad and Vijaynagar during the current financial year.

“The primary sales of assets have witnessed robust growth in the past several quarters and we hope the same would continue. This augurs well for our business. With the development of infrastructure further, we hope our products will continue to do well as majority of them cater to the growth in rural and semi urban markets”, added Mr Bhattacharya. He also said that the company, apart from consolidating its position for its core products like Car, Commercial Vehicle & Construction loans in the market, will also focus to grow the higher yield products such as Suvidha, Tractor and SME Loans, which will contribute significantly in the company’s business