Marking a significant stride in its business strategy, Sundaram Home Finance Ltd. (SHFL) has recently inaugurated a new branch in the bustling city of Kota. This move is a clear signal of SHFL’s intent to broaden its establishment beyond its traditional stronghold in the South of India. Following closely on the heels of this development, the company has announced plans to set up another branch in the scenic city of Udaipur within the coming months, as it meticulously carves its expansion blueprint across the Central Indian landscape.
SHFL has historically had a robust presence in Rajasthan, with operational branches strategically dotted in the cities of Jaipur, Ajmer, and Jodhpur. D. Lakshminarayanan, the Managing Director of SHFL, projected in a confident statement that the company is poised to achieve disbursement figures in the realm of ₹300 crore in the next two to three years within Rajasthan itself. His vision is anchored in a thorough understanding of the regional market dynamics that display a mixture of vibrancy, a high adherence to credit culture, rapid urbanization, and surging economic prosperity, which he believes are indicative of the significant untapped potential in the region.
Lakshminarayanan further articulated that SHFL’s current expansionary activities in Rajasthan, coupled with a targeted strategy to capture market share in Western India, are instrumental in the gradual enlargement of SHFL’s operational footprint outside the Southern India market. Reflecting on the success of penetration efforts, he remarked that their presence in South India has been reinforced over the last few years, with active expansions reaching Tier 2 and Tier 3 towns. Such a move not only solidifies their base but also sets a precedent for exploring uncharted territories beyond their home market.
Emphasizing SHFL’s strategic direction, Lakshminarayanan highlighted that while deepening their roots in the remote towns of South India remains a core focus, seizing lucrative opportunities and establishing their brand in selective geographies outside South India is integral to their growth strategy. This approach embodies a shift from a regionally concentrated business model to one that embraces holistic coverage.
The impetus for expansion is also driven by the positive market conditions that SHFL has observed in Rajasthan, characterized by rapid urbanization and improving economic conditions. These factors contribute to a vibrant, growing market with a strong credit culture, making it an appealing destination for SHFL’s expansion.
Currently, SHFL’s overarching presence is manifested in over 140 branches that are primarily concentrated in the Southern region but have also branched out into states like Madhya Pradesh, Rajasthan, Maharashtra, and Gujarat, symbolizing their forward-looking approach towards encompassing a pan-India customer base.
The company’s latest undertakings are reflective of proactive market strategies that respond to the evolving needs of the housing finance sector, with a particular emphasis on customer service excellence and innovative financial solutions that cater to diverse customer profiles. This commitment to growth, supported by comprehensive market research and customer-centric practices, places SHFL on a robust trajectory towards establishing a national pedigree in the home finance sphere.
As SHFL embarks on this new phase of diversification and growth, they aspire to harness the potential of emerging and developing cities across India, thereby ensuring that their aspiration for a wider presence translates into tangible success and continued excellence in service to their growing clientele.
