Page 111 - Constrution Opportunities December 2016 Digital Edition

INDUSTRY FOCUS: EQUIPMENT FINANCE Tell us of your oferings (fnancing options) to the industry under various schemes? Our deep understanding of the equipment ecosystem as well as our customers enables us to identify the gap in existing solutions which can be successfully converted into market opportunities. InteractIon Equipment Loan We are in the business of equipment fnancing with a wide spectrum of asset fnance business which includes Construction and Mining equipment, IT Infra equipment, Healthcare equipment, Farm Equipment and Pre-owned Construction Equipment. Leasing Solutions In the recent past, we have focused on leasing to be a major growth driver for the equipment fnancing industry. To promote leasing, we recently organised a unique auction of rentals where we leased out select equipment to our customers at monthly rentals which are decided by reverse bidding. Tis innovative ofering is probably the frst in the industry. Te various kinds of assets given under lease include Heavy earth moving infrastructure equipment’s windmills, aircrafs, IT equipment etc. We pioneered several innovative products like a reverse auction of interest rates, which allows our customers to become the price makers by bidding for the lowest rate for loans. A monsoon special scheme ofering attractive terms and deals in collaboration with our manufacturer partners including longer tenure of loans and reduced EMIs during monsoon months; Asset Power- a unique loyalty program in collaboration with some of our global manufacturer partners where we ofer preferred customer benefts, special pre-approved ofers up to 100 per cent fnance with attractive rates etc. to the increase in their market share and We also launched the frst of its kind ‘auction exchange platform’ called ‘Smart Exchange growth. Srei has also jointly partnered in Finance’, which enables equipment owners to exchange their old equipment for new the growth of manufacturers like JCB, ones. Caterpillar, Komatsu, Hyundai, SANY, Te exchange fnance platform enables owners to replace their existing equipment with CNH and Puzzolana amongst others. those having higher productivity, better technology and improved fuel efciency. We have also leveraged technology to pioneer some of the best services. We have recently Tell us about your current portfolio launched iQuippo, a digital marketplace to sell or lease infra equipment. iQuippo will in relation to construction equipment reinvent the way businesses engage and interact with their customers. iQuippo is India's fnancing? frst and a one-of- its-kind digital marketplace for construction equipment, machinery and We are one of the largest financiers of services. Te platform allows buyers and sellers to interact, negotiate and close transactions construction and mining equipment in in a timely, transparent and cost-efective manner. India and enjoy a market share of around 30 per cent. Construction and Mining Do you think the revival in public efects of the work done are now coming Equipment fnancing still forms a majority infra projects has legs, and what is your through. Highway construction by NHAI of our portfolio. In the recent past, the prognosis for the real estate? Has the and MoRTH for the H1 FY 2017 was company has strategically diversified its provisions in the Union budget started around 2979 kms up by around 22 per cent footprints and has forayed into new areas making a diference on the ground for compared to H1 FY 2016. India has become of equipment fnancing – IT, Healthcare, infra and construction sector revival? self-sufcient in power. Record capacities of Farm and Preowned. Te new verticals have Yes, we are witnessing on ground action in 94 million tones were added in ports in the helped gain entry into new markets and infrastructure. Record project awarding last fscal. diversify portfolio risks. Srei Equipment is backed record numbers in construction Finance Ltd has disbursed `5,354 crore activities too. Regulatory reforms like the Tell us of the specifc equipment/ products during the half year ended September 30, Land Acquisition Bill and Real Estate Bill for which there is growing demand for 2016 as compared to `3,972 crore during have been benefcial for the developers. In fnance? the corresponding half of previous year; the recent Union Budget too, infrastructure Backhoe Loaders and Excavators have been registering a growth of 35 per cent. Total has been a priority for the Government the mainstay in of the CME industry. Tey Assets under Management stood at `20,216 indicated by total outlay for infrastructure form around 60 per cent of the market by crore as on September 30, 2016 as compared being increased to `3.4 trillion. Te biggest volume and 50 per cent by value. In the frst to `19,381 crore as on September 30, 2015. benefciaries are roads, railways, and power. half of this calendar year backhoe loaders, Gross NPA reduced from 4.17 per cent as Almost 76 per cent of the incremental excavators, and compactors sales grew at on 30th September, 2015 to 2.62 per cent allocations (budgetary + non budgetary) more than 40 per cent. Going forward we as on September 30, 2016; while net NPA have been towards roads and railways. Tese continue to see these dominating. One reduced from 3.16 per cent as at September two sectors have been allotted an outlay more area that we expect to grow is the 30, 2015 to 1.80 per cent as on September of `2.18 Tn. Roads and Highways will tipper market in the commercial vehicles 30, 2016. get investments of about `1 trillion. Te segment. DECEMbEr 2016 |construction opportunities 115