Piramal Enterprises Limited is planning to expand its financial services business presence across 1,000 locations with 500-600 branches across India over the next five years.

Speaking at the company’s annual general meeting on Friday, Ajay Piramal, Chairman, Piramal Enterprises Ltd said, “FY2022 was a pivotal year for our financial services business. Through the DHFL acquisition, we achieved a major portfolio transition and significant growth, that would have otherwise taken several years to accomplish through the organic route.”

“The acquisition helped us to make good progress towards transforming ourselves into a diversified lender. The share of retail loans increased to 36 per cent as of March 2022 from 12 per cent in March 2021,” he added.

Piramal said that over the next five years, the financial service business intends on growing retail disbursements by 40-50 per cent (on a CAGR basis), doubling the overall AUM from FY22 levels, and achieving a loan book mix moving to two-thirds retail and one-third wholesale loans.

To achieve this, Piramal has embarked on a twin-engine strategy for the retail lending business, to drive scale and growth. “Engine #1 is the ‘phygital, secured lending’ business with a dominant position in affordable housing, mass affluent housing and MSME loans, contributing to 90%+ of retail AUM. Engine #2 is the ‘Digital embedded Finance’ business, where we offer small-ticket and short-duration loans (such as personal loans, purchase finance, etc.), originated through digital channels and partnerships. We are live with 12 partnerships across several segments. This acts as a customer acquisition engine, helping add 90%+ of our new customers,” he said.

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