According to Puri, the company intends to start a pilot project that will run for six to nine months in order to operationalize the business.
The company’s entry into the non-banking financing company (NBFC) market, according to Pidilite Industries’ managing director Bharat Puri, is a logical move.
Puri clarified how the companies’ connections to the workman ecosystem will benefit them in their loan business in an interview with CNBC-TV18 on November 9.
“Pidilite has an intense connection with its natural environment. We’ve been seeing this ecosystem-wide demand for a long time that we occasionally need little bursts of currency for brief periods of time, and no one knows us, our payment history, how much we buy, or our capacity, better than you. Consequently, moving forward, this is a very sensible step, Puri stated.
Speaking about the business’s capital allocation and how it hopes to benefit from its loan operations, he stated that the endeavor is probably going to strengthen the company’s ties and provide it with new information.
“From a risk perspective, we have the information, we’ve dealt with them for years, we know exactly how much they purchase, what’s their buying history, what’s their payment history, what is their credit worthiness, so on and so forth,” Puri stated.
Very tiny amounts of capital are needed in terms of capital allocation. We intend to maintain this endeavor apart from the main Pidilite firm, so it will be managed and housed independently, but it will undoubtedly strengthen our ties. Puri stated, “Hopefully, it will increase our level of loyalty and provide us with more information. Nobody else has this knowledge about this ecosystem.”
The MD responded that the business enjoys familiarity with its ecosystem when questioned about the risk perspective inherent in the NBFC sector.
According to Puri, the company intends to start a pilot project that will run for six to nine months in order to operationalize the business.
For the first six to nine months, we will essentially only choose one tiny geographic area. We will test every assumption we have in that geographic area. We will be in a much better position to respond to your inquiries regarding management bandwidth and risk profile,” Puri stated.
