Bengaluru, 21 December 2024: Shriram Finance Limited (Shriram Finance), the flagship company of the Shriram Group, has strengthened its commitment to green financing by consolidating all its green financing initiatives under Shriram Green Finance, dedicated to funding initiatives beyond electric vehicles. This marks a significant step towards accelerating sustainable initiatives and fostering environmentally responsible growth by expanding the scope of funding opportunities.
Building on its existing expertise in financing electric vehicles, Shriram green finance will provide sharper focus and clarity to its sustainability efforts.
Shriram Green Finance, consolidates the green finance business with a vision to build a robust green finance portfolio through financing EVs, battery charging stations, renewable energy products and solutions, energy efficient machinery, etc. By leveraging its extensive customer base, particularly in semi-urban and rural areas, Shriram Finance has the potential to play a transformative role in green financing. The company has set a target to achieve an Asset Under Management (AUM) of ₹5,000 crores for this vertical over the next 3–4 years.
Shriram Green Finance will raise global and domestic funds which are focussed on green investments for onward lending to its constituency. Mr. Umesh Revankar, Executive Vice Chairman, Shriram Finance Limited, said, “The launch of Shriram Green Finance vertical is a milestone in Shriram Finance’s journey toward fostering sustainable and inclusive growth. As one of India’s leading financial institutions, we are deeply committed to environmental stewardship and our responsibility to empower stakeholders with sustainable financial solutions. This initiative is a testament to aligning our strategies with the global shift toward a greener economy and we are charting a course for long-term value creation that balances profitability with purpose.”
Mr. Y. S. Chakravarti, Managing Director and Chief Executive Officer, Shriram Finance Limited, said, “At Shriram Finance, we view sustainability as an essential driver of progress. The Green Finance vertical exemplifies our vision to build sustainable ecosystem that benefits all stakeholders. This initiative underscores our dedication to enabling customers and partners to thrive in a low-carbon economy.”
India’s electric vehicle (EV) sector is undergoing rapid expansion, driven by ambitious government policies, technological advancements, and growing environmental awareness. EV sales, charging infrastructure sector is growing rapidly as well with fast-charging and battery-swapping technologies being prioritized to enhance convenience.
While India’s energy efficient machinery segment is still at a very nascent stage, India’s renewable energy sector has experienced remarkable growth over the past decade driven by ambitious government initiatives and a growing focus on sustainability. All these present an opportunity for Shriram Finance.
Shriram Green Finance will initially focus on building the EV portfolio across India, with initial focus in Karnataka, Kerala, National Capital Region (NCR) and Maharashtra. Shriram Finance is actively engaging with OEMs manufacturing EVs to establish long-term partnerships, ensuring seamless and accessible vehicle financing solutions.