The Hindu Business Line : M&M Fin plans to vend insurance, MF products

MR ANAND G. MAHINDRA (left), Chairman, Mahindra & Mahindra Finance Service Ltd, and Mr Bharat Doshi, Director, addressing the company's AGM in Mumbai on Monday. - Shashi Ashiwal

Mumbai , July 10

Mahindra & Mahindra Finance Services Ltd (MMFSL) proposes to diversify into distribution of insurance products and mutual funds.

The company is also foraying into the rural housing sector to become a one-stop shop for all finance solutions in the market.

Addressing the annual general meeting of the company, Mr Anand Mahindra, Chairman, Mahindra Finance, said the company is already in insurance broking and now plans to be an intermediary by distributing insurance and mutual funds.

Maruti tie-up

The company that has a strong presence with over 300 branches in the `rural market' had earlier announced its tie-up with Maruti Suzuki to provide finance to all Maruti vehicles.

Mr Bharat Joshi, Executive Director, said, "Our penetration in the rural market is our forte and that made it possible for us to tie up with Maruti."

MMFSL will utilise the dealer network of MUL and its service mark Maruti Finance to market its auto loans.

The finance company will have the non-exclusive licence to use Maruti Finance mark to sell its products.

The companies (MMFSL and Maruti) can participate in joint promotion schemes as mutually decided to promote and market auto loans for Maruti vehicles.

By doing so, Maruti will be able to tap the rural and semi-urban markets and expand the base of first time car buyers. As said by Mr Jagdish Khattar, Managing Director, Maruti Suzuki, "the company had the right products and network to penetrate the rural market but the missing link was car finance which will now be provided by MMFSL".

The company' shares closed at Rs 182.90 on the BSE on Monday.

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