Pidilite Industries to foray into lending business
Mumbai: Adhesive-maker Pidilite Industries announced on November 8 its intention to venture into the lending sector, underscoring a commitment to offering credit through small retail loans.
“The new business would provide credit to its domain ecosystem to support its business growth. This credit will be provided primarily in the form of small-value retail loans,” Pidilite said in a press release.
The company said it intends to acquire the non-banking financial company (NBFC), Pargro, owned by the promoter group.
The company revealed that Pargro Investments Private Limited, the identified NBFC, currently lacks any lending operations and is free of debt as of October 31, 2023. The acquisition of this promoter group NBFC, estimated at Rs 10 crore, is scheduled to be finalised by March 31, 2024.
“The transaction will be completed post execution of the SPA and necessary documents and upon obtaining the necessary RBI approvals,” the company said.
Further, after establishing the venture, the company plans to inject Rs 100 crore in separate tranches.
“Over the next two years, to build the new business, the company expects to invest up to Rs 100 crores in tranches, through an optimum mix of equity and debt,” Pidilite added.
Pidlite owns well established brands like Fevicol, Fevicol MR, Dr. Fixit, Fevikwik, M-Seal,· Fevistik, Hobby Ideas, and Fevicryl among others.
IBNS
Senior Staff Reporter at Northeast Herald, covering news from Tripura and Northeast India.
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