By Nishit Navin and Nandan Mandayam
BENGALURU (Reuters) -India’s non-banking finance company Shriram Finance has consolidated its green finance business under Shriram Green Finance, it said on Friday, and targeted assets under management (AUM) of 50 billion rupees ($588 million) over the next three to four years under the portfolio.
The green finance vertical will be built through financing electric vehicles (EV), including two-wheelers, battery charging stations and renewable energy products, among others, the company said.
The focus is now on building an EV portfolio across India, including Karnataka and the National Capital Region.
The development comes at a time when the use of electric vehicles has grown rapidly in recent years to account for 2% of India’s annual sales of 4.2 million cars.
Shriram Finance’s total AUM was 2.43 trillion rupees as of September end and its green financing portfolio is currently around 6 billion-7 billion rupees, the company said at a press conference.
The company currently finances 7% of the electric two-wheelers that are bought on loans in the country and wants to take the number up to 20% over the next few years, its CEO and MD Y.S. Chakravarti said.
($1 = 85.0450 Indian rupees)
(Reporting Nishit Navin and Nandan Mandayam; Writing by Dimpal Gulwani; Editing by Sumana Nandy)
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