Magma Leasing & Maruti Udyog in pact for financing cars

Magma Leasing Ltd has announced that Maruti Udyog Ltd (Maruti), on September 20, 2006 has signed up with the Company, the fastest growing financial services Company to finance Maruti cars across the country. The agreement was signed on September 20, 2006, by Jagdish Khattar, Managing Director of Maruti Udyog Ltd and Sanjay Chamria, Managing Director of the Company at a function held in Kolkata.

Sanjay Chamria, Managing Director, of the Company said, "This is a big day for Magma Leasing as we sign the agreement with Maruti Udyog, country's market leader in automobiles. Magma specializes in financing new and pre-owned vehicles in the semi urban and rural areas which is the fastest growing market in the country. Magma will finance the entire range of Maruti cars through its own network. With the imminent merger of Magma and Shrachi Infrastructure Finance, the Company will phenomenally grow its reach to increase financing Maruti cars in the hinterlands which is Maruti's focus area now. With an increased reach through 146 branches, we will compliment Maruti's plans very well."

Leveraging Magma's reach in semi-urban and rural markets:

The Company has a strong infrastructure in semi urban and rural India. Apart from own 68 offices in 16 states; the Company has presence in over 1000 marketing clusters through channel partners. Maruti's recent thrust on ‘C’ and ‘D’ segment towns is already catered by the Company. Infact in the semi-urban and rural markets to which the Company majorly caters, it is already one of the biggest financers of Maruti vehicles.

Magma- SIFL merger to add strength to the agreement:

With the recent announcement of a merger of the Company and Shrachi infrastructure Finance, the merged entity will provide a great opportunity to Maruti Udyog in terms of further deeper reach and greater volume. The merged entity will finance Maruti vehicles from 146 branches, almost evenly distributed between the regions with stronger access to north and south, the biggest markets for Maruti vehicles.

Recent merger announcement of Shrachi Infrastructure Finance with Magma Leasing

Shrachi Infrastructure Finance Ltd (SIFL), an established NBFC, having strong network in south, east and central India with growing presence in the west will merge with the Company. Board of directors of both Companies approved the merger plan on August 25, 2006. SIFL is currently a sizable player in financing commercial vehicles and three and two wheelers. The merged entity will be one of the biggest retail financing Company in the country with over 2200 people in 146 branches. The combined entity’s assets under management will be worth over Rs 4500 crore (US$ 1 billion). The combined entity will have a very strong rural and semi urban base with over 80% of the branches located outside city limits. The combined entity has a customer base in excess of 1.5 Lac.

Source : Equity Bulls

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