Shriram Transport Finance Company Limited (STFC)

Shriram Transport Finance Company Limited (STFC)

Presented by: Arun Sharma Bhuvnesh Kashyap Jasdeep Singh Basra Megha Tewari Neha Aggrawal Prateek Biswas Shambhavi Shukla Sonakshi Kalra

OVERVIEW • Shriram Transport Finance Company Limited (STFC), are one of the largest asset financing NBFCs in India with a niche presence in financing pre-owned trucks and Small Truck Owners (STOs). • It was established in the year 1979 and is registered as a deposit taking NBFC with Reserve Bank of India under Section 45IA of the Reserve Bank of India Act, 1934. • It is the flagship company of the Shriram Group which has significant presence in Chit Funds, Consumer Durable Finance, Life Insurance, General Insurance , Stock Broking, Property Development, Project Engineering, Wind Energy among others.

• As on March 31, 2009 they had 479 branches and tie up over 500 private financiers across the country. • Operational efficiency, integrity and a strong focus on catering to the needs of the common man by offering him high quality and cost-effective products & services are the values driving STFC.

OFFERINGS Products (pre-owned and new) offerings to Small truck Owners (STOs) and First time user (FTUs) includes: MAIN PRODUCTS:

OTHER PRODUCTS:

• Commercial Vehicle Finance. • Passenger Commercial Vehicle Finance. • Multi Utility Vehicle Finance. • Three wheeler Finance. • Tractor Finance. • Construction Equipment Finance.

•Tyre Loan. • Engine Replacement Loan. • Working Capital Loan. •Co-Branded Credit Card. •Freight bill discounting.

SERVICES OFFERINGS

Over 70% of India's freight moves on trucks. A majority of these trucks, amounting to over 90%, are owned and operated by independent operators. Of the over 25 lakh truck operators in the country, less than 8 lakh operators have access to fair and equitable credit, thus making credit support to the majority

Enter the Shriram Group. We began financing individuals who wanted to purchase trucks in 1979. Today, Shriram is amongst the largest financiers of individual truck purchasers in the country. More than 300 active Shriram Group branches across the country have successfully managed to transform over 5 lakh truck drivers into proud truck owners. We have deployed close to Rs.9000 crores (US$ 2 Billion)

Our products (pre-owned and new) offerings to Small truck Owners (STOs) and First time user (FTUs) includes:   MAIN PRODUCTS: Commercial Vehicle Finance Passenger Commercial Vehicle Finance Multi Utility Vehicle Finance Three wheeler Finance Tractor Finance Construction Equipment Finance OTHER PRODUCTS: Tire Loan Engine Replacement Loan Working Capital Loan Co-Branded Credit Card Freight bill discounting

Achievements Stepping up efforts to penetrate deeper into the semi urban and rural India, country's largest car maker Maruti Suzuki India on Monday inked a pact with Shriram City Union Finance with an initial allocation of Rs 1,000 crore. Shriram Transport buys 40% stake in Ashok Leyland arm ICAI Award - “ Silver Shield ” for Excellence in Financial Reporting Ashok Leyland brings STFC as strategic partner in Ashley Transport Services Best PE-Backed Company Award for 2008

Consumer finance We entered the Consumer Durable Finance business in early 2002 through 'Shriram City Union Finance Ltd., the consumer finance arm of the group. Within a short span of 2 years, we have managed a portfolio of over Rs.584 crores in this business. Our monthly business amounts to over Rs.25 crores in individual loans, ranging from as little as Rs.8,000 to Rs.1,00,000, and with tenures ranging from 12 months to 36 months. Since its inception, we have financed over 2,15,000 white goods and two-wheelers, with over 90% of the business arising out of the non-metro markets. This financing is backed by lines of credit extended by ICICI Bank, UTI Bank and Development Credit The

FIXED DEPOSITSIt is a deposit where the Interest is being paid at Monthly/Quarterly intervals. Fixed Deposits are accepted in multiples of Rs. 1,000/- subject to a minimum amount of Rs. 25,000/- per deposit account. Interest Payment Modes :- Post Dated interest warrants sent direct to depositors - Direct to the depositor with bank details  - Through RBI Electronic Clearance Service (ECS)  - DD CUMULATIVE DEPOSITS:Cumulative Deposits are accepted in multiples of Rs. 1,000/- subject to a minimum amount of Rs. 25,000/per deposit account. For Deposit interest rates

STFC claims a 20-25 per cent market share in the pre-owned truck finance market. In addition, STFC has a market share of 7 per cent in the new truck market. At the current market price of Rs 288, STFC trades at 10 times its historic earnings and 2.5 times its FY-09 book value. Almost three-fourth of the total assets under management (loan book and securitized assets put together) is contributed by pre-owned trucks and the rest 25 per cent by new trucks. The book for STFC has grown at 53 per cent CAGR in the period 2005-2008. The company delivered robust earnings growth (57 per cent for FY-09) despite the slowdown in new truck demand thanks to its significant presence in pre-owned truck financing. Risks: Disbursements have dropped by at least 25% in the last two quarters and

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