The Hindu Business Line : GE Commercial keen on expansion

Speaking to newspersons on the company's plans, Mr Tejpreet S. Chopra, CEO, said that the company is looking at India as a thrust area for a wide range of its financial services among the emerging markets, including east Europe, Russia and West Asia.

Asset reconstruction would be another area of interest. The company is examining various options and is looking at buying some portfolios.

Though with the buoyancy in the economy the choices currently being limited, "down the road it would be a big focus area" for GE Commercial, he said.

In infrastructure financing, the company is looking at funding airports, ports and toll roads.

Other focus areas for the company would include real estate, construction, mining, transportation, infrastructure, healthcare, energy and IT.

GE Commercial Finance has been in India since 1993 and has an asset base of over $1 billion.

It now sees growth coming in multiples as the company sets itself an aggressive target. GE in India is targeting revenues of $8 billion in assets by 2010 and GE Commercial finance will play a central role, he said.

Mr Chopra said that a strong point in the company's favour is the wide-ranging manufacturing base within the GE Group.

The products include jet engines, water treatment plants turbines and medical equipment. This not only means that products and services are available on hand, but that there is in-depth knowledge of costs.

He emphasised that GE Commercial was not a "captive financier" for its own products, an advantage GE Commercial Finance enjoys.

"Good asset and good economic deal" are the criteria for funding. The company depends on bank loans, commercial papers and bonds to raise funds. It also has GE's balance sheet backing it, he said. Where GE Commercial Finance enjoys an edge over banks, whose cost of funds may be cheaper, is GE's knowledge in each asset class. But the gap in competitiveness is "not that big."

Globally, GE's commercial finance business has an asset base of about $200 billion.

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