Shriram Finance announces green finance vertical, aims Rs 5,000 crore under AUM in 4 years
Shriram Finance, India's second-largest Non-Banking Financial Company (NBFC) on Friday announced that it has consolidated all its green financing initiatives under Shriram Green Finance with Rs 5000 crore Asset Under Management (AUM) target for the nw vertifical over the next four years.
The green finance vertical will be built through financing electric vehicles (EV), including two-wheelers, battery charging stations and renewable energy products, the NBFC's top executives said at a media conference, adding that, “building on its existing expertise in financing electric vehicles, Shriram green finance will provide sharper focus and clarity to its sustainability efforts.”
The vertical aims to raise global and domestic funds which are focussed on green investments for onward lending with an initial focus on Karnataka, Kerala, National Capital Region (NCR) and Maharashtra. “The company is actively engaging with OEMs manufacturing EVs to establish long-term partnerships, ensuring seamless and accessible vehicle financing solutions,” the company said.
Shriram Finance MD YS Chakravarti said the initiative will enable customers and partners to thrive in a low-carbon economy. “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.”
The group believes India’s energy efficient machinery segment, growing renewable energy sector and government initiatives present an opportunity for green investments.
Artificial
