Industry Profile

Shriram Transport Finance Company Ltd, a flagship company of Shriram group is India's
largest player in commercial vehicle finance. The principal activity of the company is to
provide finance for new and pre-owned automobiles. They provide services such as new truck
finance, used truck finance, tyre finance, power finance, franchisee finance personal loans and
freight exchange. The company is having 484 branches along with 6 regional offices and 50
SBUs across 23 states and 2 union territories. Shriram Transport Finance Company Ltd was
incorporated on June 30, 1978 as a public limited company.
The company was formed with a view to provide hire purchase and lease finance for the
medium and heavy commercial vehicles. In the year 1993, the company launched lease
portfolio management scheme and managed more than 100 crore of business through this
scheme. In March 1995, the company came out with a rights issue of 64.95 lakh equity shares
aggregating Rs 6.49 crore. The issue was to augment long-term resources and working capital
and to enhance the leverage ability of the company. In the span of 20 years, the company had
fortified their presence in the market, on account of their focused business segment, a wide
geographical coverage, an effective credit monitoring and appraisal system, which has resulted
in high growth in business and profitability.
During the year 2003-04, the company increased the windmills capacity from 4,450 kwh to
8,650 kwh for producing electricity. During the year 2005-06, the undertaking of Shriram
Investments Ltd and Shriram Overseas Finance Ltd was amalgamated with the company with
effect from the appointed date April 1, 2005. Also, they increased the windmills capacity from
8,650 kwh to 23,180 kwh. During the year 2006-07, the company made a tie up with UTI Bank
for issue of co-branded credit cards, with several safety features, on the VISA platform,
exclusively to the truck operators. Also, they entered into a shareholders' agreement with
Ashok Leyland Ltd and their associates for purchase of 40% stake in Ashley Transport
Services Ltd. In February 8, 2007, the company incorporated a 100% subsidiary, namely
Shriram Powergen Ltd to deal with the windmill and the biomass projects of the company.
During the year 2007-08, due to economic conditions and other business exigencies the
company retained the business with them and disposed off their entire shareholding in their
wholly-owned subsidiary company. During the year 2007-08, the company opened their own
branches across 72 locations. They also extended their operations to financing of passenger
commercial vehicles, second-hand tractors and construction equipment during the year. During
the year 2008-09, the company opened 49 branches across India. They also strengthened their
core knowledge verticals relating to product, Territory and Customer. During the year 2009-10,
the company purchased hypothecated loan outstanding of CVs and construction equipment of
GE Capital Services India and GE Capital Financial Services aggregating to approximately Rs
1,100 crore.
They introduced touch screen kiosks (one Stop) as a replacement for their successful campaign
- 'truck Bazaars'. In June 22, 2009, the company acquired the entire paid up capital of Shriram
Equipment Finance Pvt Ltd and consequently Shriram Equipment Finance Pvt Ltd became a
100% subsidiary of the company. But, they sold their entire investment of Rs 5 lakh during the
year itself and consequently Shriram Equipment Finance Pvt Ltd ceased to be the subsidiary
company.

In December 15, 2009, the company incorporated a wholly owned subsidiary company
namely, Shriram Equipment Finance Company Ltd and in February 11, 2010, they incorporated
Shriram Automall India Ltd as a wholly owned subsidiary. The company continued to expand
their reach and as on March 31, 2011 had 488 branches pan-India. The company continued to
strengthen their network also through private financiers through fiduciary relationship. As on
March 31, 2010, the company had tie-ups with more than 500 private financiers. The company
decided to expand their product offering to cater to their existing customer profile comprising
of first time users (FTUs) and small road transport operators (SRTOs). As a result, the
company focused to expand their product profile to cater to construction equipment segment
and passenger vehicle segment through their dedicated subsidiaries, Shriram Equipment
Finance Company Ltd and Shriram Automall India Ltd.


Growth and downturn are like the proverbial two faces of the same coin. In any economic
cycle, they are imperative nodes, almost definite consequences of each other. This has been a
recurring story, across ages, economies, industries and businesses. And it is for this reason that
anyone aspiring to win over a downturn must necessarily do so through acknowledging its
presence rather than discounting it. The presence of a robust business model is of course, an
added advantage in such times. At Shriram Transport we have witnessed these crests and troughs
more than once in our three-decade history. And in doing so, have always maintained a humble
stance in dealing with the external circumstances. At the same time we have taken care to infuse
innovation and uniqueness in our business plan, changing the perception of our investors,
maintaining a superior asset quality, competitive funding costs, and preserving the relationships
we build. This has allowed us to counter economic headwinds and adversities in a manner that
created value and accorded us a leadership position in our chosen domain. 2008-09, without
doubt has been the most difficult of these adverse years we have faced. Partly because it
happened with an unprecedented ferocity, and partly because it came at a time when our business
was operating at a globally consequent scale. The financial sector was among the worst affected
sectors on account of poor asset quality, lower liquidity and higher delinquencies. The first half
witnessed liquidity pressures on account of the collapse of US subprime market. Some of the top
banks and financial institutions also succumbed to the affects of bad asset quality, resulting in
permanent discontinuance. Although, India withstood global pressures in the first half; the
second half saw the impact of global meltdown reach our shores. It constricted liquidity and
credit availability. Barring the difference in magnitude, this clearly was history repeating itself. It
is very satisfying to report that even in such trying times; Shriram Transport reported another
year of growth. Not only did our assets under management grow to nearly 5 billion dollars, we
registered a 48.7% increase in total income, 57.1% increase in net profits so what enabled us to
post such a performance even in the wake of a global slowdown? Our ability to survive and excel
across various cycles in the industry as well as the economy resulted from the type of assets and
customers we finance, our relationship model and our uncompromising attitude towards
maintaining a robust asset quality. With these basic factors strongly intact, we have been able to
weather storms through the decades and establish our leadership as the largest asset financing
NBFC in India. The future is brighter and promising. The Indian GDP is expected to maintain its
steam and grow at an average 6.5-7% in the coming years. The aspirations would continue to
grow and so would the demand for pre-owned trucks.
In such interesting times, we have taken yet another step to be future-ready. The focus is on
managing volumes, increasing penetration, delivering growth without diluting the relationship-
based business model and asset quality. We have created a multi-vertical structure to cater to
increased products and ensure lower delinquencies. In addition, we have also initiated some
concrete innovation measures to expand the market potential of the preowned vehicle finance
segment, like Truck bazaar and partnerships with private financiers. I would like to congratulate
and thank all the stakeholders employees, shareholders, customers, investors, etc. For being a
critical part of our journey till date. I look forward to your continuous support in the coming
years to enable us define yet another milestone through our performance.






















SHRIRAM GROUP
INCORPORATED IN
India's largest player in commercial vehicle finance, was established in the year 1979. The
company has a network of 620 branches and 515 rural centres. We are one of the largest asset
financing NBFCs in India with a niche presence in financing pre-owned trucks an Small Truck
Owners (STOs).
REPUTATION
Indias largest asset financing NBFC, providing accessible, affordable commercial vehicle
finance to more than 600,000 customers across India.
PRODUCTS
Financing of pre-owned and new commercial and passenger vehicles, construction
equipment, tractors, 3 wheelers, multi-utility vehicles, among others. Shriram Transport also
offers finance for working capital, engine replacement, bill discounting, credit cards and
tyre-loans, to provide holistic financing support to customers.
PRESENCE
Headquartered in Mumbai and with a pan-India presence through 479 branches.
PEOPLE
12,196 employees
LISTINGS AND KEY SHAREHOLDERS
The shares of Shriram Transport are listed on the Bombay, Madras and the National Stock
Exchanges.
The principal stakeholders of Shriram Transport (besides the Shriram Group) are reputed
institutions such as TPG-New bridge and Chrys Capital. Shriram Transport has over 40,000
retail shareholders.








HISTORY AND MILESTONE:
APRIL 2007 :
Shriram group attracts largest venture capital investment in Indian non-banking
Financial sector, from overseas.

APRIL 2005:
Shriram Group attracts largest Venture Capital Investment in the Indian non-banking
financial sector, from Overseas.

JULY 2004:
UTI Bank picks up equity stake in two Shriram Group companies

17MARCH 2003:
Shriram Investment Limited received the Mother Teresa Award for Corporate
Citizenship.

DECEMBER2002
Shriram Group enters into strategic alliance with Citicorp Finance and
Cummins Auto Services

31AUGUST2002
Shriram Group ties up with UTI Bank for Retail Truck Financing
Scheme to offer low cost loans for purchase of new or used trucks to transport
operators.

7MAY2002
Ms. Akhila Srinivasan awarded as the "Outstanding Woman Professional" for the year

2002
4FEBRUARY2000
Shriram Recon Trucks incorporated as India's first corporate network for selling
reconditioned used trucks.

15DECEMBER1999
Medicorp, the flagship company of Shriram groups pharmacy division became the
first Indian company to win the Indian Drug Manufacturers Association

27 MARCH1986
Shriram City Union Finance Ltd. Incorporated for cars and two-Wheelers.

12MARCH198
Shriram Investments Ltd. Incorporated 13JUNE1979


















Organization study
We are a part of the "SHRIRAM" conglomerate which has significant presence in financial
services viz., commercial vehicle financing business, consumer finance, life and general
insurance, stock broking, chit funds and distribution of financial products such as life and general
insurance products and units of mutual funds. Apart from these financial services, the group is
also present in non-financial services business such as property development, engineering
projects and information technology.
Our Company was incorporated in the year 1979 and is registered as a Deposit taking NBFC
with Reserve Bank of India under section 45IA of the Reserve Bank of India Act 1934.
STFC decided to finance the much neglected Small Truck Owner. Shriram understood the power
of 'Aspiration' much before marketing based on 'Aspiration' became fashionable. Shriram started
lending to the Small Truck Owner to buy new trucks. But we found a mismatch between the
Aspiration and Ability. The Truck Operator was honest but the Equity at his command was not
sufficient to support the credit levels required to buy a new truck.
We did not have the heart to send the Truck Operator back empty handed; we decided to fund
Pre-owned Trucks. This was the most momentous decision that we made. What followed was
Sheer magic.
From Driver to Owner, even if only of a Pre-owned Truck and from Pre-owned Truck to the
New Truck, we have been with him in his journey of Prosperity as he has been our partner in our
road to success and leadership.
For us at Shriram, credit-worthiness of the Small Truck Owner has always been an article of
faith. This faith has guided our journey from our
pioneering days in financing Small Truck Owners to the present day leadership. Today we are
not only the leader in Truck Finance; we are also India's largest Asset Based Non-Banking
Finance Company.
The inability of the economists to capture data relating to the economic activity of the informal
sector has resulted in its neglect at the policy-making levels in the government.
The distribution of Truck Ownership being scattered among a large number of individuals has
resulted in this very important group being missed by the institutional radar.
It is estimated that 80% of trucks in the country are in the hands of individuals.
We at Shriram Transport have traditionally maintained a single vertical structure. This
organisational hierarchical structure was based on the foundation of personal relationships and
ownership. The branch manager was the sole responsible authority at the branch level for all the
issues relating to credit appraisals, asset quality, and business development and over all
administration. Such a structure was highly preferred and successful in the earlier years as the
volumes were low, that enabled a branch manager to keep account of all the customers, field
officers, collection status and also market conditions.With a view to manage the ever increasing
volumes in operations, we initiated the restructuring of our organisational hierarchy from a single
vertical model to a tri-vertical model, with separate business divisions credit, administration
and products.
The new organisation structure resulted in us adopting a product-specific focus, as against a
geography-specific focus. At the same time, the three-legged structure would enable clear focus
on three major components:
a. Product: marketing and sales of existing products, training and development of field level
executives (product
executives) and development of new products
b. Risk: ensuring quality appraisals
c. Branch administration
The move to set-up a new organisational structure emanated from the need to maintain
operational efficiency
despite the doubling of volumes in a short time. This has enabled us to keep a check on the credit
losses.




















Senior management team:
Name Designation Profile
Arun Duggal Chairman Experienced International
Corporate Business Advisor
on financial strategy, M&A
and capital raising
R. Sridhar Managing Director Over two decades of
experience in financial
services sector, especially in
commercial vehicle
financing, joined Shriram
Group in 1985 and is serving
as the Managing Director
since September 2000. Holds
directorship in other Shriram
Group companies
Umesh Revenkar Deputy Managing
Director
Joined as an Executive
Trainee in 1987 and looks
after operations of the CV
finance business. Holds a
degree in MBA Finance
Parag Sharma CFO Over 19 years experience in
finance industry. Joined in
1992 and now heads the
Finance function, a qualified
Cost Accountant










The Future is yet an Old Story, but with a Fresh twist.

We, at Shriram Transport, are the market leader in pre-owned truck finance the segment worth
about Rs. 100,000 cr. We aim
at increasing our market share to 40% from currently 20-25% in the coming years. For executing
the same, we are focussing
on a five pronged approach for creating infrastructure that would support and drive a scalable
and sustainable growth. These
three areas that would drive future are knowledge, products and people.

KNOWLEDGE:

Our business model revolves around the core trait of knowledge. To cater to a bigger volume, it
was very important to divide the
knowledge factor into three core verticals Product, Territory and Customer.
Customer knowledge includes the ability to differentiate a genuine potential customer from
hoards of people. Since we fund
FTUs and STOs having minimum documentation and higher asset mobility, it is imperative to
maintain personal relationships
with such customers. At Shriram Transport, we believe that personal relationship is the biggest
tool of ensuring a great asset
quality. To ensure better management of customers and at the same time to ensure grass-root
contact, we increased our work
force from 9,694 in 2007-08 to 12,196 employees in 2008-09.
Territory knowledge refers to knowing the areas where the company should or should not
finance. Being in the business for
30 years, we have successfully demarcated risky areas for each asset class, thereby ensuring that
defaults are kept in check.
Our net NPAs decreased 7 bps from 0.90% in 2007-08 to 0.83% in 2008-09. At the same time,
we revisited our geographical
presence and identified major growth centres and also some non-viable centres. We embarked on
a mission to relocate or
consolidate smaller centres into bigger premises and opened 49 new branches during the year.

PRODUCT:
We, at Shriram Transport have financed commercial vehicles for more than three decades.
These also included financing of tippers, tractors and passenger vehicle. With shortage of
labour the transportation is becoming more mechanized with forklifts, cranes, loaders etc.
With increased economic activity many of our customers have ventured into newer business
opportunities like sub contracting construction activity, buying tractors which are again used
for lots of commercial activities along with agricultural activities. Similarly many of our
customers also ventured in to passenger vehicle operation as road infrastructure has
improved.
With the clear bifurcation of products, the process of learning about the products and
the specialist approach in marketing them has enabled us to clearly identify and segregate the
potential growth from each product vertical. The new products would explore higher business
from the same set of customers. The verticals are designed in a way to ensure tapping of a
similar customer base of FTUs in the other segments such as passenger commercial vehicles,
tractors, farm equipment, construction equipment, etc.

PEOPLE:

We have traditionally believed in a home-grown race of professionals. However, in order to
strengthen our product knowledge, we have been recruiting senior personnel from the
industry across levels. Since the personnel, having worked in the industry would have
requisite knowledge on the products; their expertise would come in handy for the
development of new products along with the refining of existing ones. In addition, we have
also developed training programmers that train these employees in understanding the norms,





















VISION, MISSION AND VALUES:
Helping create wealth, empowering people through prosperity, putting people first.
The Shriram Group set out with the objective of reaching out to the common man with a host
of products and services that would be helpful to him in his path to prosperity. Over the
decades, the Group has achieved significant success in executing this objective and has
created a tremendous sense of loyalty amongst its customers.
Efficiency in operations, integrity and a strong focus on catering to the needs of the common
man, by offering him high quality and cost-effective products & services, are the values
driving the organization. These core values are deep-rooted within the organization and have
been strongly adhered to over the decades.
The group prides itself on its perfect understanding of the customer. Each product or service
is tailor-made to perfectly suit the needs of the customer. It is this guiding philosophy of
putting people first that has brought the Group closer to the grassroots and has made it the
preferred choice for all financing requirements amongst the customers.

NON-BANKING FINANCIAL COMPANY (NBFC) A GENERAL SCENARIO
Non-Banking Financial Company (NBFC) is a company registered under the Companies Act,
1956 and is engaged in the business of loans and advances, acquisition of
shares/stock/bonds/debentures/securities issued by Government or local authority or other
securities of marketable nature, leasing, hire-purchase, insurance business, chit business but
does not include any institution whose principal business is that of agriculture activity,
industrial activity, sale/purchase/construction of immovable property. A non-banking
institution which is a company and which has its principal business of receiving deposits
under any scheme or arrangement or any other manner, or lending in any manner is also a
non-banking financial company (Residuary non-banking company).







DIFFERENCE BETWEEN BANKS & NBFC?
NBFCs are doing functions akin to that of banks; however there are a few differences:
i. A NBFC cannot accept demand deposits;
ii. It is not a part of the payment and settlement system and as such cannot issue cheques to
its customers; and
iii. Deposit insurance facility of DICGC is not available for NBFC depositors unlike in case
of banks.

COMMERCIAL VEHICLE:
It is the funding of products include, trucks, buses, tippers, light commercial vehicles,
pickups, 3 wheelers, etc.
Range of services: funding of new vehicles, refinance on used vehicles, balance transfer on
high cost loans, top up on existing loans, Extend product, working capital loans & other
banking products.

Who are eligible?
Any individual / Partnership firm / company with more than 2 years business experience.
Ownership of a vehicle is not mandatory. Funding extended to First Time User, Transporters
and Captive Consumers.

How much?
Loan amount can vary from a few thousands to crore depending upon the specific
requirement.
Funding can be up to the extent of 100 % of the chassis, body funding can be extended on
special requirement & on the past experience.
Generally undertaken is Hypothecation funding. They are also taking over an old
high-interest loan and converting it into low interest loan.

Repayment:
In general repayment period is of 3 -4 years, however depending on the nature of the deal the
tenure can vary from 6 - 60 months. The repayment schedule & the amortization schedule is
sent on disbursement of the loan.

Interest:
Interest is charged on a flat rate based on the scheme applicable for the particular product.

FARM EQUIPMENT LOANS:
Farm equipment loan has also a big chunk in the vehicle finance.
Eligibility:-
Agricultural Users
Any individual aged above 21 years at the beginning of the tenure and below 65 years
by the end of the tenure; involved in agriculture for the last 5 years.
Having minimum 2 acres of land with its value at least twice the loan amount.
Staying in the same place for at least 3 years.
Having an annual income equal to the yearly instalment
Mortgage of land of 2 to 3 times of the loan amount

Commercial Users:
Any individual aged above 21 years at the beginning of the tenure and below 65 years
by the end of the tenure; involved in business for the last 3 years.
Owns at least one tractor or commercial vehicle.
Owns either a house or an office or at least 2 acres of land.
Has a permanent phone connection either at office or at home.

Loan Amount:
The loan amount varies from customer to customer depending on the valuation of the land
being mortgaged, income of the customer and tenure desired. A maximum of 100% of the
cost of the tractor, 75% of the cost of the trailer and 50% of the cost of the implements is
funded.







Documentation:
Agricultural use
Application form with photograph of the customer and all co applicants and/or
guarantor.
Performa Invoice of the asset to be funded from an authorized dealer.
Land records of the borrower/s.
Land valuation and title search report of the land.
Residence proof of the borrower/s.
Identity proof of the borrower/s.
Signature verification of the borrower/s.
Loan agreement, duly signed by the applicants and guarantor.
2 SPDCs(Security Post Dated Cheques) for entire tenure.

Commercial Use :
Application form with photograph of the customer and all co applicants and/or
guarantor.
Performa Invoice of the asset to be funded from an authorized dealer.
Proof of Income (any of the following) :
Billing statement for the past one year
Latest Income tax Return
Last 6 months bank statement
Residence proof of the borrower/s.
Identity proof of the borrower/s.
Signature verification of the borrower/s.
Loan agreement, duly signed by the applicants and guarantor.
2 SPDCs(Security Post Dated Cheques) for entire tenure.

Rates & Fees:
The rate of interest varies from customer to customer and depends on various factors like
land holding, loan amount, viability of the proposition and the underlying collaterals
provided.

Interest:
Interest is charged on a monthly/quarterly/half-yearly reducing balance basis as the case may
be. Every instalment that is paid has a component of principal as well as interest. Interest is
charged on the principal outstanding after every instalment payment.

TWO WHEELERS:
Two wheeler finance is comparably Simple, Friendly and Quick.
Loan Schemes are available from Rs.7500/- onwards to Rs.150000/- in easy instalments over
a period of 6 to 36 months.
Eligibility Criteria:
1. Salaried Individuals
2. Self Employed Individuals
3. Pensioners, Housewives & Students
4. Partnership Entities
5. Private Limited Companies
6. Public Limited Companies

Interest rates:
Interest rate is charged on a monthly reducing balance.

Documents:
Identity Proofs
Residence Proof
Income Proof
Post Dated Cheques
Copy of Credit Card
CC billing statement
Bank passbook/Statement
No objection Certificate




AWARDS AND RECOGNITION
Recipient of the social responsiveness awards instituted by Business world Compaq at
national level under the auspices of FICCI, Delhi.
Adjudged as the third prize winner for having render commendable service in the areas of
social welfare and rural development.
Ms. Akhila Srinivasan receiving the social responsiveness Award instituted by Business
World Company from the Honble Vice President of India Krishna Kant in the year 1999.
Recipient of outstanding woman professional for 2000 01 by FICCI FICCI Ladies
organisation (FLO). The award was given by Ms. Sheila dixit Chief Minister Delhi. Mother
Teresa award for corporate citizenship instituted by Loyola institute of Business
Administration (LIBA) Chennai, 2002.During the year, Shriram Transport was a recipient of
two prestigious awards Silver

Silver Shield from ICAI:
The company was awarded Silver Shield for Excellence in Financial Reporting by the
Institute of Chartered Accountants of India (ICAI). The Annual Report and Accounts for the
year ended March 31st, 2008 have been adjudged as the second best amongst the entries
received under the Banking and Financial Institutions category.

BEST PE-BACKED COMPANY AWARD FOR 2008
The company also received Best PE-Backed Company Award for 2008. This award was
given on the basis of research-cum survey conducted by Venture Intelligence among
members of the Private Equity/Venture.

SOCIAL WELFARE INITATIVES
They have always believed in delivering financial value with a human face. As a company
firmly grounded up a middle class ethos, we take our social responsibilities very seriously.
Their corporate Social Responsibility (CSR) initiative started with the Shriram Social
Welfare Trust (SSWT) that was set up in the year 1993. SSWT is today active in the
following areas.
Orphan and destitute care
Primary education for the rural poor
Micro credit financing through self- help groups for the marginalized
Empowerment and enlistment of women in villages.

OPRHAN AND DESTITUTE CHILDREN:
To swiftly help the poor and the needy to be self reliant and live with dignity, not charity. The
primary focus and beneficiaries of the Trusts activities are.
a. Abandoned neglected and destitute children.
b. Juvenile delinquents in need of care and protection.
c. Children of poor and illiterate parents.
d. Disadvantaged and marginalized section of women, particularly rural women

MICRO CREDIT FINANCING THROUGH SELF-HELP GROUPS FOR THE
MARGINALIZED WOMEN IN VILLAGES.
a. Launch of Shriram Social Welfare Trust (SRDP) to create and develop
b. Social and human capital among the poor.
c. Micro credit financing through self help groups in 156 villages in Tamil Nadu, Andhra
Pradesh and Karnataka.

PRIMARY EDUCATION FOR THE RURAL POOR:
The trust runs four schools in rural areas at Thiruneermalai, Pallikaranai, Moovarasampet in
Tamil Nadu and inn Prakash Nagar, Guntur Dist. In Andhra Pradesh. Over 2000 children
receive free education. Schools offer education up to class VII and student will progressively
move up to higher secondary level.

FUTURE PLANS:
a. To start six primary schools for the rural poor in the villages of Andhra Pradesh.
b. Government of Andhra Pradesh to hand over 3.5 acres of land to SSET in six districts.
c. Immediate Plans: to start two schools in Cudapah and Guntur districts in June 2005.





LONG TERM BENEFITS OF THE PROGRAM:
a. Reduction in rural indebtedness
b. Bank/institutional credit for investment in income generation activities.
c. Improved household food security round the year, better nutrition.
d. Improved household income.
e. Empowerment of Women.
f. Greater leverage and status of SHG members in local communities and with the state

THE FUTURE ACCORDING TO SHRIRAM
1. To enlarge the scope of micro credit financing activity through NBFC Shriram
Investment Limited.
2. To extend activities to Bihar, Kharkand, and Eastern Uttar Pradesh.
3. To lend credit at low interest rates to 3 lakh women below poverty line in the next 3
years.

NATIONAL AWARDS WON
Business World Compaq award fota Social Responsiveness instituted by FICCI from
the Honble Vice President of India Mr. Krishna Kant on 1999.
Mother Teresa award for Corporate Citizenship instituted by Loyola Institute of
Business Administration (LIBA), Chennai in 2002.











PRODUCT PROFILE:
1. TRUCK FINANCE
1. Shriram Truck Financing Companies. The wheels of progress.
2. Largest NBFC in the country exclusively engaged in financing of heavy commercial
vehicles.
3. Monopoly position in financing of used vehicles.
4. All India presence with a branch network of 260 offices and employing over 4000
people.
5. Growing at the rate of 30% per annum.
6. Funds managed Rs 6000 crores.
7. Equity investors - Citicorp,, UTI Banks, Reliance Capital and FMO Netherlands have
added tremendous value and strength.
8. Venture capital firm Chris capital joins as a strategic partner by acquiring 21% equity.
We entered the Consumer Durable Finance business in early 2002 through 'Shriram
City Union Finance Ltd., the consumer finance arm of the group. Within a short span of 2
years, we have managed a portfolio of over Rs.584 crore.
Our monthly business amounts to over Rs.25 crore in individual loans, ranging from as little
as Rs.8, 000 to Rs.1, 00,000, and with tenures ranging from 12 months to 36 months
Since its inception, we have financed over 2, 15,000 white goods and two-wheelers, with
over 90% of the business arising out of the non-metro markets.
This financing is backed by lines of credit extended by ICICI Bank, UTI Bank and
Development Credit.STFC helps meet customer needs end to end, in the transport lifecycle.
Our products (pre-owned and new) offerings to small truck owners (STOs) and first time
(FTUs) includes:

MAIN PRODUCTS:
Commercial vehicle finance
Passenger commercial vehicle finance
Multi utility vehicle finance
Three wheeler finance
Tractor finance
Construction equipment finance

OTHER PRODUCTS:
Tyre loan
Engine replacement loan
Working capital loan
Co-branded credit card
Freight bill discounting

CUSTOMER PROFILE:
STOs and FTUs have been traditionally under-penetrated as banks have been reluctant to
lend to these segments due to the under-developed banking habits of the customers, mobile
nature of the hypothecated assets and inadequate legal documents available among customers
for verification of their creditworthiness. Further, earnings of these truck owners are
somewhat volatile as they depend on brokers and LTOs for their freight and ~95% of their
contracts are spot in nature. Therefore they are not entertained by the large banks and other
NBFCs. Based on our relationship based approach, we at Shriram Transport have continued
to remain the market leader in this segment. We have also been instrumental in making this
segment one of the most sought after by the banks and large NBFCs in the recent times.
At Shriram Transport, our people are the most critical resource. Being in a relationship-based
business, people are not only the originators but also the appraisers and managers of the
transaction throughout its life cycle.
At Shriram Transport, our employees have initiated, driven and sustained our growth across
decades. With a blend of youth and experience, of the average age of 28 years, we have
evolved into one of the most respected knowledge-led companies in the industry. Our
workforce comprise of more than 12,100 employees across India. Our ability to hire and train
the locals has enabled us to acquire thorough territorial and geographical knowledge. Our
performance linked remuneration scheme resulted in the employees delivering their best and
also securing our asset quality across the various cycles.




CONSUMER FINANCE:-
We entered the consumer Durable Finance Business business in early 2002. Through
Shriram City Union Finance Ltd. The consumer arm of the group. Within a short span o 2
years, we have managed a profile of over rest 684 crores in this business.
Our monthly business amounts to over Rs. 25 crores in individual loans, ranging from
as little as Rs.8000 to Rs. 100000 and with tenures ranging from 12 months to 36 months.
Since its inception we have financed over 215000 white goods and two wheelers with over
90% of the business arising out of the non metro markets.
This financing is backed by lines of credit extended by
ICICI Band, UTI Bank and Development Credit.

CHIT FUNDS:-
Shriram chits prosperity
Shriram chits are the largest chits fund in the country. We have grown to become a trusted
household investment option. The growth registered by Shriram Chits recent years not only
indicated the usefulness of this savings instrument, but is also a reflection our customers trust
in.
Chits one of the earliest investment instrument known to man, were founded by the
enlightened communities of India. These have, ever since, worked to the advantages of
communities that are batting scarce capital resource. Shriram chits started its operations in the
year 1974 with a single branch that has quickly grown into trusted household name for
making chits a viable form of saving and borrowing to all sections of the social.
A Shriram chit operates in four states. Tamil Nadu, Andhra Pradesh, karnataka and
Maharastra, where has a reputation for timely disbursement of funds and excellent customer
services which differentiates it from other companies. Using state of the art computer
systems/networks and a transparent accounting system, Shriram Chits have transformed this
contemporary method of savings into an attractive personalised to banking system.

GENERAL INSURANCE:-
Shriram group has adopted a two strategy in this segment.
1. Broking arm Armour Consultants floated in year 2002
2. Retail Marketing Arm: Ski marketing floated in year 2001.

ARMUR CONSULTANTS PRIVATE LIMITED: INSURANCE EXPERTS AT YOUR
SERVICE
Amour consultant is engaged in insurance broking in corporate insurance markets and has
already aggregated business volumes in excess of Rs. 200 crores ($ 44 million) in premiums.
Amour consultant comprises a team of distinguished professionals from insurance, finance,
law and other management discipline, who have vast business and managerial experience.
The company has handled major claims for renowned clients. There have been several claim
cases that were won even in the arbitration stage.
The tern at Armun Consultants begins with an in depth evaluation of the client
companys business environment. The company risk profile is then studied. Based on the
results of these evaluations. The team then suggests the most cist effective, integrated
insurance package that is perfectly suited to the companys risk profile. The company plans
to extend its customer base of the existing 500000 policy holders to cross the 1 million mark
by the end of financial year 2005-06.
LIFE INSURANCE:-
The shriram group plans to enter the life insurance segment 05. Am application has already
been filed with the IRDA for the same. We are also exploring the possibilities of
collaborating with a foreign partner in this venture. We expect to be a major player in this
very fast growing sector, as a natural corollary of business philosophy and expertise.
STOCK BROKING:-
Our stock broking arm operates under the insight share Brokers Pvt. Ltd. It is a member of
the National Stock Exchange, India and the Multi Commodity Exchange. This unit has
expended the network by 150% over the last year and today it has more than 230 terminals
spread across the length and breadth of the country. It has a retail customer base of around
50000. The company launched its new products like Derivatives and commodity trading in
early 2004.

A QUICK LOOK AT SOME OF THE SALIENT FEATURES
Limits of all clients are fixed at a pre-calculated level.
This is beneficial to them in the long run as it prevents overtrading.
A timely payments and direct share transfer facility from NSE.
Adequate risk control research support.
The clincher. Pro-activate and preventive risk control.

































SWOT ANALYSIS
Strengths
The largest asset financing NBFC in India
Unique business model
The only player in the organised sector to offer pre-owned commercial vehicle financing to
FTUs and SRTOs
Pan India presence covering over 600,000 customers
Strong, stable and experienced management team
Extensive expertise in asset valuation
Strong ability of raising resources from multiple sources
Strong financials

Weakness
Business segment heavily dependent on economic
activity

Opportunities
Tap more customers through partnership with private
Financiers
Truck Bazaar to enable tapping the customers at the
entry point
Passenger commercial vehicle financing
Second hand tractor financing
Freight challan discounting, working capital loans, tyre
loans, etc.
Construction equipment financing

Threats
Maintaining relationships and asset quality, while
achieving scalability





ORGANISATION CHART
BOARD OF DIRECORS
SHIRAM TRANSPORT FINANCE COMPANY LIMITED
R Sridhar Managing Director
S. Venkatakrishnan

Executive Director

Umesh G Revankar
Executive Director
K.R.C Sekhar
Director
S. Ranganathan
Nominee of Citicorp Finance (India) Ltd.
Dr. T S Sethurathnam
Nominee of IREDA ltd.
K. Prakash

Company Secretary & Compliance
Officer