Interview

CEO | Srei Equipment Finance Ltd.

Devendra Kumar Vyas

SEFL is the only financial institution that has a presence across the entire asset life-cycle by providing financing to and sustaining continuous engagement with customers across equipment procurement, deployment, maintenance, second life financing, and exit stages. The equipment-centric services our company provides include preferred financing schemes offered by us in conjunction with OEMs, equipment deployment assistance during project downtime, spare parts financing, exchange programme financing and used equipment financing.

 

Q. Why SEFL is one of the best construction equipment finance companies in India and what sets it apart from others?

The clear market differentiator for Srei Equipment Finance Limited (SEFL) has been its holistic approach in providing end-to-end solutions that cover the entire value chain in the equipment life cycle that includes equipment procurement, deployment, maintenance, second life financing, and exit stages. Our partnerships with OEMs are the most distinguishing aspect of our equipment-centric business model. These include various arrangements such as general associations, preferred financier associations and private label associations. Our customer-focused approach also has contributed to our success. We cater to a wide range of customers, from ‘First Time Users’ and ‘First Time Buyers” to fleet owners and mid-size contractors to large corporations and project owners. Supported by our holistic equipment financing solutions approach, our customer-focused approach has helped us retain our customers as their business has grown in size as well as expand our customer base through their referrals.

Our years of experience in the equipment financing business have provided us with deep insight into various equipment categories, diverse geographies and multiple customer segments. Our risk assessment framework and credit appraisal policies are an outcome of this experience, which we have progressively institutionalised. As we continue to diversify our customer exposures, we are scaling up our asset-centric risk approach to cover multi-dimensional risks. We increasingly manage risk by deploying technology including real time equipment location identification through GPS/ GPRS devices, use of handheld devices by field personnel, customer service through online portals, mobile applications and customised risk prognosis tools.

 

Q. What kind of equipment do you finance?

We, at SEFL, offer innovative financing solutions to equipment purchasers under these arrangements, which we believe are relatively new to the Indian equipment financing market. We are the only financial institution that has presence across the entire asset life-cycle by providing financing to and sustaining continuous engagement with customers across equipment procurement, deployment, maintenance, second life financing, and exit stages. The equipment-centric services we provide include preferred financing schemes offered by us in conjunction with OEMs, equipment deployment assistance during project downtime, spare parts financing, exchange programme financing and used equipment financing. In addition to CME, we have also diversified into financing of Tippers, IT and allied equipment, Medical and allied equipment, Farm equipment and Other assets. Apart from offering loans, we are also engaged in providing equipment on leases as and when required by our customers across our business verticals. The term of our lease agreements with customers typically range from four to eight years.

 

Q. What can one expect from SEFL in terms of its plans and business strategy?

We have experienced steady growth recently. Our growth strategy primarily includes consolidating our equipment financing business through strategic business alliances and marketing initiatives, continuing to expand and diversify our product portfolio, growing our operations and network across India, and expanding our customer base across various business verticals in India. In addition to providing CME financing, as part of our growth strategy, we intend to continue to expand our operations in other business verticals as well. We plan to enter into partnerships with new OEMs and vendors and expand in equipment categories and business verticals with attractive growth opportunities. We aim to strengthen our relationships with OEMs by increasing original spare part sales. This will also help in the upkeep of our funded equipment. We also plan to partner with OEMs and dealers for financing refurbished assets. We are continuously attempting to optimize borrowings and explore alternate avenues of funding. The company is open to adopting newer technologies to achieve greater operational efficiency and advanced risk management processes.

 

Q. How you are going to contribute in Bauma, 2018? Is there any product launch from your side in Bauma exhibition?

Events like bauma CONEXPO INDIA (“Bauma”) serve as confluence ground for all industry participants – manufacturers, customers, financiers and regulators. It provides us a perfect platform to meet our key stakeholders and understand their needs. We are optimistic about heightened Retail and SME buying during the event and hope to generate a lot of enquiries and eventual business during and after the event.

As always SEFL will have a big presence at the exhibition with its stall (Stall no. O.F35) in outdoor pavilion of about 2,315 sq. ft. Our patrons can experience technological innovation in equipment financing, online gateway for purchase of both new and used equipment, audio-visual and interactive information systems, and fun and engaging activities at our stall.

With our attractive offerings and strategic tie-ups with our manufacturer partners, we hope to provide financing solutions for quite a large number of equipment.

For this edition of Bauma Conexpo, we have tied up with our manufacturers’ partners to offer exciting schemes and solutions for our customers covering the entire asset life-cycle. Our offerings include:

• Leasing solutions: Our rental products offer customers with the ‘Right to Use’ the equipment against periodic rentals for agreed period of time. These rental levels are significantly lower and attractive compared to vanilla loan products and are bundled with attractive terms like Free Insurance for full tenure, lower margins etc.

• Customised financing solutions: Enriching the customer with better cash flows, extended facility tenure; backed by simple documentation and quick processing time.

• Loyalty schemes: Loyalty schemes wherein customer can avail additional loan facility, based on past track record, as a top-up funding limit or to buy an equipment from select original equipment manufacturers (OEMs).

• Online financing solutions: Our customers can also experience technological innovations in equipment purchase and finance through online portal partner – iQuippo through which they can not only view, decide and purchase equipment at attractive terms but also avail easy finance from different financing partners of iQuippo at one stop.