MAHINDRA IDEAL FINANCE
As a strategic move to become a leading financial services provider in Sri Lanka, Ideal Finance recently rebranded itself as Mahindra Ideal Finance in a joint venture partnership with Mahindra & Mahindra Financial Services Limited (Mahindra Finance/MMFSL).
The rebranded Mahindra Ideal Finance Limited (MIFL) has already gained recognition through this investment with a Fitch rating of ‘AA-’ (Outlook Stable). Mahindra Finance’s investment in Sri Lanka is part of its international strategy of expanding into Asian markets – especially those of strategic importance to Mahindra Group’s automotive and farm equipment products.
Meanwhile, the rebranded entity MIFL will enhance its customer value proposition by offering an even broader suite of products. These would include gold loans; leases for personal vehicles, commercial trucks, and two and three-wheelers; consumer finance loans; and personal loans.
The company aims to rapidly increase its branch network to ensure that it can service its customers as close to
their doorstep as possible.
Speaking on the occasion, Vice Chairman and Managing Director of Mahindra Finance Ramesh Iyer commented:
“We are looking at expanding in Asia. This strategic partnership with Ideal Group is a significant step in that direction. The Sri Lankan market holds great growth potential with a strong long-term growth opportunity.”
He assured that “the newly christened entity will be a win-win for both partners as we bring in the required resources, capital and expertise to fuel this growth.”
Chairman of Ideal Group Nalin Welgama added: “Our association with Mahindra Group has been a longstanding one, and the group lending its name to the erstwhile Ideal Finance bears testimony to
the confidence that Mahindra Group has in this partnership.”
He continued: “We are confident that MIFL will facilitate exponential growth opportunities in Sri Lanka’s financial services market and help achieve our goal of becoming one of the leading financial institutions. We strongly believe that the newly branded Mahindra Ideal Finance will positively influence the business and propel the company to greater heights in Sri Lanka.”
MIFL intends to capitalise on Mahindra Finance’s over 25 years of expertise and Ideal Finance’s market knowledge to build a robust financial services business. Mahindra Finance aims to replicate its successful and socially inclusive business model in Sri Lanka by expanding the scope of the business.
Being similar to India, Sri Lanka’s financial services market has emerged as a promising opportunity for Mahindra Finance. Sri Lanka as an automotive market holds strategic importance for Mahindra Group, whereby it has also set up an assembly line operation.
ABOUT MAHINDRA & MAHINDRA FINANCIAL SERVICES
Mahindra Finance focusses on the rural and semi-urban sectors, with over 7.3 million customers and assets under management of more than US$ 11 billion. The company is a leading vehicle and tractor financier, and it provides loans to SMEs and offers fixed deposits.
ABOUT IDEAL FINANCE
A non-banking financial institution (NBFI) registered with the Central Bank of Sri Lanka, Ideal Finance commenced operations in March 2012, focussing on the rural and semi-urban sectors. Its lending portfolio comprises commercial trucks, motorcars, three-wheelers, two-wheelers, gold loans and personal loans.
