Centrum acquires L and T Finance’s supply chain finance business

Centrum Financial Services Md and CEO Ranjan Ghosh said the supply chain finance business is a fast growing area and the company is looking to increase its presence in this space.

“This acquisition will be a natural fit in our portfolio and will be a profitable accretive business

in the first year itself,” he added.

This will also give the company lucrative cross sell opportunities, according to Ghosh.

“We plan on infusing additional capital and are confident that the acquired L&T Finance team will play a significant role in helping us grow the business,” he said.

L&T Finance’s supply chain vertical provides working capital finance to entities that are suppliers to large industrial manufacturers and original equipment manufacturers. It also provides channel and inventory finance to dealers. The combined customer base is about 800.

Virender Pankaj, CE  wholesale and group head  sell down, L&T Financial Services (LTFS), said this move is in line with LTFS’s dual objectives  concentrating on core strengths and retailisation of overall lending book. “Within the wholesale finance book, we continue to focus on the renewables, roads and transmission sectors, where we have built a leadership position,” he added.

The Centrum group, through its NBFC, offers commercial finance, structured credit, supply chain and real estate finance to SMEs and MSMEs. The company’s other lending services include affordable housing finance and micro finance.

In November last year, it had acquired the micro finance business of FirstRand Bank India and took on board its 300 employees and 25 offices. L&T Financial Services has an overall lending book size of Rs 86,571 crore as of June quarter, comprising rural, housing and wholesale finance.