It is part of $1.3 bln Piramal Enterprises, one of India’s large diversified companies, with presence in pharmaceuticals, and financial services.
The housing finance venture has been floated through a wholly owned subsidiary, Piramal Housing Finance Private Limited.
It will offer home loans as well as loans against property and construction finance for small developers.
Ajay Piramal, Chairman, Piramal Enterprises said the company will now extend its reach from developers, agents and partners to end users as well.
“By doing this, we shall further cement our existing relationships and forge new ones. We are confident that the unique business model being adopted by Piramal Housing Finance will add another dimension to our service offering and establish a blueprint for further growth.”
The company will fund the entire spectrum of real estate, from affordable to luxury, and cater to both salaried and self-employed individuals by offering tailor-made loans at competitive market rates.
“Given the size, scale and market relevance of the wholesale lending business, it was a natural progression to assess opportunities within the retail lending space,” the company said.
The retail housing finance business will initially focus on a product roll out across all major metro cities and thereafter seek to establish a pan-India presence, including Tier II-III towns and cities, it said.
The retail construction finance arm will focus on local developers in Tier I and top developers in Tier II-III geographies.
“A key differentiator of this offering is that the home loan distribution will be driven through the developer relationships that PFL already has in place through its wholesale lending arm.
“In fact, the company believes that business (Piramal Housing Finance) to business (developer) to consumer (retail home buyers) or B2B2C is integral to the housing finance business,” it said.
PFL’s existing wholesale business has over Rs.35,000 crores in assets under management including debt and equity, with funding across 300+ projects and over 100 development partners.
Khushru Jijina, MD, Piramal Finance & MD, Piramal Housing Finance said the move was a natural progression. “We see the housing finance business as an extended product vertical of our existing business, creating value not just for ourselves but the entire ecosystem.”