Piramal Enterprises aims to double the AUM to INR 1.30 Lakh crore by FY28

Chandigarh, September 5, 2023: Piramal Enterprises Limited (PEL) has unveiled its long term growth and profitability plan during its Investor Day. The company plans to grow its assets under management (AUM) by 2x to 1.2-1.3 lakh crore by FY28. The company expects to achieve this by growing its retail business making it 67% retail book and 33% wholesale book.
 

The company has a strong balance sheet and expects to reach a consolidated return on assets (RoA) of 3-3.3% by FY28 with a profit after tax (PAT) of INR 4,600 crore. The company is also looking to scale up its other value drivers, such as its alternatives business and insurance business.

 
PEL's retail lending business surged by 57% in Q1 FY24 to reach INR 34,891 crore. This remarkable growth positions the retail lending segment as a pivotal driver of the company's expansion strategy, emphasizing its strong foothold in the thriving "Bharat" market. Notably, 47% of the loans are extended to individuals from tier 2/3 towns, while 69% of applicants are self-employed, with 45% being female applicants. Addressing the fundamental issue of perceived inaccessibility to credit, PEL strives to provide financial solutions that empower individuals to achieve their goals and aspirations.
 

Ajay Piramal, Chairman, Piramal Enterprises Ltd., said, "Our journey post-DHFL acquisition has been positive, driving substantial growth. We have proudly positioned ourselves as the largest NBFC in the affordable housing space. We aim to double our loan book by FY2028 organically. Our relentless focus on retail lending has driven remarkable growth. With 'high touch' and 'high tech' strategies, we will ensure a balanced approach of expanding to underserved tier-2 and tier-3 areas, particularly in affordable housing.”