Sundaram Home expands its footprint in Madhya Pradesh

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Sundaram Home Finance is continuing its expansion beyond the southern market by launching its second branch in Indore, Madhya Pradesh. The company already has a presence in the state with a branch in Bhopal.

This expansion follows its entry into Maharashtra last month and Rajasthan in April, marking a strategic move to grow outside of South India, according to a statement.

D Lakshminarayanan, MD of Sundaram Home Finance, emphasized the growth potential in Madhya Pradesh, stating, “Madhya Pradesh is a key market for our expansion outside South India. The state’s increasing affordability, diverse housing options from small homes to villas, and rising demand for plots offer significant opportunities for growth in the home finance segment. Additionally, the growing presence of MSMEs opens up avenues for working capital funding.”

He said Indore exceeded the company’s expectations in terms of rapid growth over the past 2-3 years. The city’s real estate market is well-positioned for continued growth, providing ample opportunities for both investors and homebuyers.

“As Indore’s commercial sector thrives, we expect the real estate market to follow suit. Our current expansion aims to meet the increasing demand in this market. With respect to ticket sizes, credit profiles, and growth prospects, Indore presents an ideal opportunity for us,” he added.

The company is targeting a 50 per cent growth in disbursements in Madhya Pradesh, aiming to reach ₹225 crore this fiscal, up from ₹150 crore last fiscal.

Sundaram Home Finance also plans to expand further in the state by opening branches in three new locations over the next 12-18 months. In addition, the company recently entered the affordable housing market with the launch of its Emerging Business segment in June.

For the first quarter ending June 30, 2024, Sundaram Home Finance reported a net profit of ₹66 crore and disbursed ₹1,353 crore.