Tata Capital - One stop shop for Financial Offerings

Tata Capital - One stop shop for Financial Offerings
"Tata Capital Limited,is a subsidiary of Tata Sons Limited, undertaking fund and fee based activities in the financial services sector. The Company caters to the needs of the retail and institutional customers via its wide range of offerings; truly a one- stop shop for finance and investment options. The Infrastructure Finance division of Tata Capital caters to the needs of the infrastructure sector. We have MoUs (Memorandum of Understanding) with over 35 leading construction equipment manufacturers which provides us with a unique advantage and allow us to leverage the same to provide attractive finance options to our customers," says Mr. Ranjit Manjarekar, Head Infrastructure Finance, Tata Capital, in an interview with S.A.Faridi.

With the planned investment of $1 trillion in the next 5 year plan 2012-17, how do you see the construction equipment market growing in the coming years?
As Dr. Manmohan Singh, the Prime Minister of India, recently stated “In the next 10 years, we must invest at least US$ 350 billion to modernize and expand India’s infrastructure" and the same sentiment is reflected in the 12th 5 - year plan. The 12th 5-Year Plan which envisages the investment in infrastructure to be between 8-10% of GDP, with the share of private investment rising from 36% (as forecast in the 11th plan) to 50% (as forecast in 12th plan). This private investment, to the tune of USD 275 billion, is a debt opportunity estimated to give a CAGR of 21% to the loan books of Banks & NBFCs.

Tata Capital - One stop shop for Financial Offerings

What is the market size of the equipment finance industry in India and how do you see it evolving in the next few years?
The Construction Equipment Finance industry has a market size close to Rs. 27,000 crore and is expected to grow at a rate a of 15-20% over the next 5 years.

Could you please brief us about Tata Capital Limited and its infrastructure and equipment financial services?
Tata Capital - One stop shop for Financial Offerings
Tata Capital Limited, a subsidiary of Tata Sons Limited, is registered as a Systematically Important Non Banking Finance Company, undertaking fund and fee based activities in the financial services sector. The Company caters to the needs of the retail and institutional customers via its wide range of offerings; truly a one- stop shop for finance and investment options.

The Infrastructure Finance division of Tata Capital caters to the needs of the infrastructure sector. Under the division, we finance a range of construction equipment from excavators, loaders, backhoes, wheel loaders and motor graders, to material handling equipment such as cranes , reach stackers and small and large crushers. Besides these, we also finance road construction equipment such as vibratory compactors, pavers, HMP, etc.

We also provide project funding for roadwork, irrigation, mining, airports, power, logistics, windmills, telecom towers and new crushing or RMC units. We also offer equipment on a monthly rental basis; wherein the equipment is owned, operated and maintained by Tata Capital, freeing our customers from the day-to-day operational worries.

As a large chunk of customers are small and medium size contractors and they are quite price conscious and value focused; what financing schemes are available for such customers?
We have MoUs (Memorandum of Understanding) with over 35 leading construction equipment manufacturers which provides us with a unique advantage and allow us to leverage the same to provide attractive finance options to our customers. Our wide experience and deep understanding of our customers also allows us to offer special schemes such as free insurance, payment of only the interest amount etc, during the seasons when machines are not optimally used (e.g. monsoons), to ease the impact on their finances.

What are the risks involved with equipment financing business?
  • As majority of the projects are short term in nature, dependent on the government’s spend on infrastructure,multiple clearances etc, this business faces the risk of irregular cash flows.
  • Non-registration of equipment by customers
  • Tendency toward improper maintenance or lack of AMCs with manufacturers, leading to ill use of equipment
  • Cross-state movements and difficulties in tracking equipments
  • No organised player to take care of old or repossessed equipments
Why NBFC is more preferred option for financing vis-à- vis bank?
Tata Capital - One stop shop for Financial Offerings
NBFCs are able to provide certain benefits to the customers – such as larger reach, value added services, extensive after sales support and structured and customized product offerings, which makes them popular with the customers. With RBI’s decision to launch Infrastructure NBFCs, these NBFCs will be able to compete on a better footing. We are optimistic about government support to the NBFCs operating in the infrastructure sector.

India has extremely complex tax system. What Government supports and policy implemen- tation are needed for the growth of equipment finance industry?
A key enabler for the growth of equipment finance industry in India would be its recognition as a priority sector. In addition to this, some of the areas that will bolster growth are transparency in project allotment, execution support, faster turnaround time and budgetary support for long term projects. Support on these fronts will enable the construction equipment finance industry to form a significant part of the Infrastructure arena.
NBMCW November 2011
Trimble: Revolutionizing Construction Projects with Smart Technology

Trimble: Revolutionizing Construction Projects with Smart Technology

With its smart technology, Trimble is helping contractors manage construction projects on time, improve equipment efficiency, bring higher productivity, worker safety, and complete project economically with desired quality.

Read more ...

Terex Brand Finlay: Application-Driven Crushing & Screening Solutions

Terex Brand Finlay: Application-Driven Crushing & Screening Solutions

Alan Witherow, Product & Applications Manager, Finlay in an interview with P.P. Basistha on the sidelines of Texcon 2023, informed that Finlay, a Terex product brand, is working towards making the crushing and screening solutions more

Read more ...

Jaso India Prioritising Customer's Satisfaction with Reliable Cranes

Jaso India Prioritising Customer's Satisfaction with Reliable Cranes

“Our cranes are designed as per FEM regulations and are equipped with all the necessary safety features required for safe operations. Our aim is to be trusted and reliable material lifting partner for our customers.” Vishal Sharma, Managing Director

Read more ...

Agrani Enterprises Waterproofing Infrastructure for Longevity & Safety

Agrani Enterprises Waterproofing Infrastructure for Longevity & Safety

“Embracing technological advancements can ultimately lead to more efficient and cost-effective construction practices. This is because the integration of technology in construction companies, particularly in waterproofing, repair, and retrofitting

Read more ...

3D Concrete Printing Workshop with Live Demos

3D Concrete Printing Workshop with Live Demos

Advances in robotics, materials science, and digital design have paved the way for the development of sophisticated 3D concrete printing systems capable of constructing large-scale structures with precision and efficiency. Dr. Vishal Thombare

Read more ...

Jal Shakti Restoring Water To The People of India

Jal Shakti Restoring Water To The People of India

Shri Gajendra Singh Shekhawat, Union Minister, Jal Shakti, shares with S.A.Faridi & Maria R, the challenges and initiatives being taken by the ministry towards effective water management and availability of safe drinking water for India’s burgeoning

Read more ...

Dam Safety Society: Scientific, Technological & Systematic Management

Dam Safety Society: Scientific, Technological & Systematic Management

Dams are critical infrastructure for storing water for a variety of uses like drinking, irrigation, power generation, industrial, domestic, and recreational uses. Managing the precious water assets requires systematic management and

Read more ...

Powerscreen: Strong & Reliable Electric & Hybrid Crushing Machines

Powerscreen: Strong & Reliable Electric & Hybrid Crushing Machines

Powerscreen is actively engaging with its customers to glean information on their job requirements and suggestions, and accordingly making enhancements in its products like Electric & Hybrid Crushing Machines, making them more

Read more ...

Sany India: Batch Mix Plants, Excavators, Cranes & Pilig Rigs

Sany India: Batch Mix Plants, Excavators, Cranes & Pilig Rigs

This achievement is a testament to SANY India’s commitment to provide high–quality, reliable and innovative equipment to the Indian market. Surpassing 30,000 machines operating across India fills us with immense pride. This significant milestone

Read more ...

Paving The Way for More Efficient And Timely Construction & Manufacturing Processes

Paving The Way for More Efficient And Timely Construction & Manufacturing Processes

Transformation of the infrastructure industry is vital for mitigation of climate challenges and the Blue-Green infrastructure offers a sustainable and self-healing solution for the problem at hand, informs Nikhil Jain, CEO, Qubik Group

Read more ...

MCOS Global: Solutions to Reduce Project Delays & Achieve Sustainability

MCOS Global: Solutions to Reduce Project Delays & Achieve Sustainability

Subhashis Kar, Managing Director, MCOS Global presents possible solutions and measures to effectively reduce delays in infra construction projects and bring sustainability in urban developments. MCOS Global is a prominent player

Read more ...

EXCON 2023: Showcasing Construction Industry’s Resilience and Vibrancy

EXCON 2023: Showcasing Construction Industry’s Resilience and Vibrancy

I am sure that a lot of excitement and enthusiasm is building up for the coming week when EXCON 2023, one of the largest construction equipment and technology trade fairs in the world, will open its door to welcome all the

Read more ...

Shri Gadkari discusses on road construction policies, technologies, challenges

Shri Gadkari discusses on road construction policies, technologies, challenges

In a prelude to EXCON 2023, Hon’ble Minister Shri Nitin Gadkari, Ministry of Road Transport & Highways, Government of India, discusses with S. A. Faridi,Group Managing Editor, various aspects of road construction including policies

Read more ...

ICEMA: equipment industry growth prospect, challenges, training etc

ICEMA: equipment industry growth prospect, challenges, training etc

V. Vivekanand, President - ICEMA and Managing Director - Caterpillar India, shares his views on the growth prospects of India’s construction equipment industry and the need for it to embrace higher technology standards to solidify its position

Read more ...

BAI working on construction technologies, sustainability, standardization

BAI working on construction technologies, sustainability, standardization

According to S. Narsimha Reddy, President, Builders’ Association of India, modern construction technologies, use of sustainable building materials and standardisation are important for achieving project completion timelines

Read more ...

COAOI creating favorable environment for crane rental companies

COAOI creating favorable environment for crane rental companies

COAOI engages with the government and relevant stakeholders to promote a more conducive business environment so that crane rental companies can operate efficiently and contribute to the nation’s infrastructure development while maintaining safety

Read more ...

CERA: rental co. instrumental in construction equipment industry growth

CERA: rental co. instrumental in construction equipment industry growth

Rentals are paving the way forward for the construction equipment industry, and to ensure long-term resilience and growth, we are championing initiatives like unity, standardization, and commitment to fair practices

Read more ...

JCB India: Hi-tech Excavators, Telehandlers, Backhoe Loaders & AWP

JCB India: Hi-tech Excavators, Telehandlers, Backhoe Loaders & AWP

JCB is a leading construction equipment manufacturer with a comprehensive range of products that include mini excavators, skid steer loaders, telehandlers backhoe loaders, access platforms, compactors, excavators

Read more ...

Volvo CE: Time-Tested Excavators, Compactors & Asphalt Pavers

Volvo CE: Time-Tested Excavators, Compactors & Asphalt Pavers

Volvo CE started its India operations in 1998 to manufacture crawler excavators, soil compactors, and asphalt pavers. In 2022, it introduced time-tested quality machines like the EC300DL BH, custom-built for quarries, and Volvo EC480D

Read more ...

Wirtgen: Advanced Road Construction, Crushing & Screeing Equipment

Wirtgen: Advanced Road Construction, Crushing & Screeing Equipment

With its various product brands WIRTGEN, VÖGELE, HAMM, KLEEMANN and BENNINGHOVEN, the WIRTGEN GROUP covers the entire road construction process chain from processing, mixing, paving, compacting, and road rehabilitation to

Read more ...

To get latest updates on whatsapp, Save +91 93545 87773 and send us a 'Saved' message
Click Here to Subscribe to Our eNewsletter.