Srei Infra eyes 25% growth in loan disbursements for FY18

As growth prospects improve in the domestic market, Kolkata-headquartered Srei Infrastructure Finance is looking to focus on its core businesses that include equipment and project financing. Plans for overseas expansion have been put on hold.

According to Sunil Kanoria, Vice-Chairman, Srei Infra, the company is expecting a 25 per cent growth in disbursements for FY18. This comes on the back of the industry’s expectation of a 30 per cent upward movement in construction and mining equipment sale.

“We have too many things (happening) in India at the moment. Two years ago, there was no growth; and, so we were thinking what to do, where to go and so on,” he told BusinessLine during an interview.

The Kanorias — brothers Hemant and Sunil — had previously, thought of exploring an overseas foray in the telecom tower maintenance business through one of their arms, Quippo.

However, with the infrastructure sector witnessing growth over the last one year, aided primarily by government intervention, Srei is looking to focus on the domestic market.

As construction of roads regains momentum, the company plans to list its subsidiary, Bharat Road Network — which currently has a portfolio of seven projects. The IPO is expected to hit the markets in June-July. Srei would also not be averse to acquisition of stressed road projects through this arm.

“We are building up the equipment financing business and our entire focus is on that. Then in the roads sector, we intend to list the company (Bharat Road); and grow the portfolio. Presently, these top the priority list,” Kanoria added. Equipment rental is expected to be another growth driver. Srei’s equipment rental business is operated through four firms under Quippo. The online marketplace for equipment rental and allied services, iQuippo, will also be scaled up now.

According to Kanoria, implementation of GST should help create a viable option for the low-profile equipment leasing market. Multiplicity of taxation was a hindrance.

Srei is also looking to bring in a strategic investor for Sahaj e-Village, a network of at least 64,000 common service centres, mostly across villages, that were created to provide G2C services. Sources say, around ₹350 crore has gone in as investment towards building these centres.

“We will look for an investor partner, including a PE. Business is doing better and growing. Post demonetisation, the digitisation of rural areas is picking up,” Kanoria pointed out.

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