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G. Naga Sridhar

Hyderabad, Oct. 28 Spandana Sphoorty Innovative Financial Services Ltd has forayed into tractor and dairy finance and is planning to invest significantly in these sectors.

“The micro-finance market in Andhra Pradesh in general, and South India in particular is becoming crowded and we want to tap into the missing markets in rural areas such as tractor finance and dairy farm’s needs,” Ms G Padmaja Reddy, Managing Director, Spandana, told Business Line here.

Spandana, a micro finance player with presence in six southern States, has tied up with Mahindra and Eicher for tractor finance in Andhra Pradesh. “Tractor finance in Andhra Pradesh is a booming market. It is estimated that about 42,000 tractors will be sold in the State this year. (Last year, 34,000 tractors were sold) We want to tap at least 4.5 per cent of it this year,” Mr P Madhava Rao, Vice-President (Alternate Channels), Spandana said.

The company has set a target of financing over 2,000 tractors before the end of current financial year and has financed 168 tractors so far. The firm is extending Rs three lakh (about 70 per cent of a tractor’s price) with repayment period of three-four years at 18 per cent interest, he added.

In addition, the Hyderabad-based firm is also bullish on financing dairy sector. “This is another thrust area for us. We are offering finance to dairy agents for procurement of milk backed by an agreement with leading dairy farms,” Mr Rao said.

Spandana has extended finance to agents of Mukunda Dairy, Chandra Dairy (Hyderabad), Vijaya Dairy (Kurnool), Dhoolipala Dairy (Guntur), Nandi Dairy (Nandyal).

It has recently finalised a pact with Balaji Dairy (Nandyal) and efforts are on to rope in more dairy farms.

“We have earmarked Rs nine crore for dairy sector and distributed Rs 4.5 crore so far,” Mr Rao added.

More Stories on : NBFCs | Rural Development | HCV/LCV/Tractors | Dairy & Dairy Products | Andhra Pradesh

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