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Shriram Transport buys 40% stake in Ashok Leyland arm
STFC - 16 August, 2007
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Chennai, Aug. 13 Shriram Transport Finance Company has picked up a 40 per cent stake in Ashley Transport Services Ltd, a wholly owned subsidiary of Ashok Leyland Ltd. The company was set up by the truck maker as part of its value-added services to trucking community.
For instance, Ashley Transport Services runs Transport Exchange, which helps truck owners to get information on cargo and the freight rates.
Ashley Transport will benefit from Shriram Transport’s 5-lakh-strong customers. Shriram Transport, in return, will get a pie in ‘challan discounting’ business for members of Transport Exchange.
Mr R. Sridhar, Managing Director, Shriram Transport Finance Company, today said at a press conference that at present the value of ‘challan discounting’ (a form of bill discounting) was about Rs 80,000 crore, mostly done by informal financiers.
This year, the company expects to lend Rs 1,000 crore more. Even 5 per cent share of the Rs 80,000-crore market is a huge opportunity, according to the company
Shriram Transport, with assets under management of Rs 12,000 crore (both on its own books and those managed on behalf of those who bought its securitised paper), is the largest non-banking and finance company in the country.
Incidentally, both Shriram Transport and Ashok Leyland have their own used truck business. Asked if the two companies will work together in that area too, Ashok Leyland’s Managing Director, Mr R. Seshasayee, said: “We have chatted about it.”
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