Mumbai:

Its profit before tax (PBT) grew by 62 per cent to Rs 31 crore. The company has maintained its spreads despite competitive pressures, by focusing on the right product-market mix and tight control on costs.

While maintaining disbursements at the level of the previous year, the company achieved growth in profits due to a higher asset base and active liability management. The company's assets grew by 18 per cent to Rs 1,633 crore.

Says Cholamandalam managing director M Anandan: "From 2000 to 2003, Cholamandalam focused on growth through expansion to achieve an all-India distribution across different product segments. Now we are pursuing growth through better penetration in each product-market segment. We are also focusing on delivering superior customer service through leveraging IT and CRM systems."

Says Cholamandalam Chairman M A Alagappan: "Financial services is a core part of the Murugappa group's growth plans. Cholamandalam now has a portfolio of diversified but related businesses — both fund- and fee-based. We aim to continue creating value for stakeholders through aggressive yet prudent growth in all the businesses."

Cholamandalam operates in over 160 locations across India through a network of own offices and exclusive franchisees. Apart from occupying a position of leadership in financing light commercial vehicles (LCVs), the company offers finance for heavy commercial vehicles (HCVs), cars, two- and three-wheelers and tractors.

The company has been steadily strengthening its capital base to sustain its growth. As of 30 September 2003, Cholamandalam's net worth stands at Rs 225 crore and its capital adequacy ratio is at a healthy 14.1 per cent.

Cholamandalam, along with its subsidiaries and affiliate, offers individual and institutional customers a range of financial services — vehicle finance, capital market finance, general insurance, mutual funds, securities broking, distribution of investment products and risk management. Cholamandalam shares are listed on the Bombay (BSE) and National (NSE) stock exchanges.

Cholamandalam is part of the Rs 4,500-crore Murugappa group, a pioneer and market leader in several fields with manufacturing facilities across 12 states. The Murugappa group has a strong presence in abrasives, engineering, bio-products, sanitary ware, confectionery, sugar, farm inputs, plantations and nutraceuticals. Companies in the group include Carborundum Universal, EID Parry and Tube Investments of India.