India-based conglomerate Godrej has entered into the financial services industry by launching the new Godrej Housing Finance (GHF) business.
Through GHF, the company aims to create a long-term sustainable retail financial services business in the country, with a balance sheet of around INR100bn ($1.34bn) in the coming three years.
The new company is planned to provide fast and flexible home loans across India, starting with customers in Mumbai, NCR, Pune and Bangalore.
Godrej Housing Finance chairman Pirojsha Godrej said: “We are excited to launch our financial services business today. This is the first step in what we hope will be another important pillar of growth for the Godrej Group.
“The increasing formalisation of the real estate sector combined with the dislocation in the residential real estate and housing finance market makes this a particularly interesting opportunity at the current moment. We hope to deliver value to the Indian home buyer with a deep focus on fair, fast, and flexible home loans that delight our customers.”
GHF will partner with developers including Godrej Properties
GHF is expected to work together with developers including Godrej Properties, to offer enhanced financing experience for the existing and new customers.
The new housing finance firm will initially focus on the mortgage business, starting with home loans, followed by loans against property, in a short time.
Also, the company intends to expand its product portfolio to provide business and personal loans in the future, based on the Group’s consumer and agri business ecosystems.
Established in 1897, the Godrej Group has a customer base of 1.1 billion, across consumer goods, real estate, appliances, agriculture and other businesses, generating a revenue of around $5bn.
Godrej Housing Finance managing director and CEO Manish Shah said: “We believe that the Housing Finance market is underpenetrated and underserved. The industry is also plagued with being complex and convoluted with hidden conditions and painfully long customer journeys.
“We aim to correct this and usher a refreshingly simple and transparent way of doing business. We want to give customers a home loan that is customised to what’s important to them, basis their housing needs, financial capability and convenience.”
