Centrum to acquire supply chain business of L&T Finance

Centrum Financial Services Limited, the NBFC arm of the Centrum Group, controlled by former Standard Chartered banker Jaspal Bindra, signed an agreement to acquire L&T Finance's Supply Chain Finance business on Wednesday. L&T Finance is a subsidiary of L&T Finance Holdings Limited.

The business has a loan book of approximately Rs. 800 crore with staff strength of 50 professionals based in 16 cities. The supply chain vertical provides working capital finance to entities that are suppliers to large industrial manufacturers and Original Equipment Manufacturers (OEMs). The company also provide channel finance and inventory finance to dealers. Its combined customer base is nearly about 800.

Strengthening SME lending business is a key focus area for Centrum. The supply chain finance business is a fast-growing area in the SME space. The company foresees the acquisition to be profitable and accretive in the first year itself. The deal will also provide cross-sell opportunities for Centrum. Additional capital infusing is also planned for the business.

LTF, under its loan portfolio rejig plan, has started concentrating on housing, rural and retail segment. Thus its objective of retailization of the overall lending book is expected to be fulfill by this acquisition.