Mitesh Mahesh Pujara, Executive Director, India Home Loan Limited
India Infoline News Service | Mumbai | February 13, 2017 16:38 IST
“Gujarat, Maharashtra will remain our focus states while Rajasthan may add to our revenues.”
Mitesh Mahesh Pujara serves as a promoter at India Home Loan Limited and has been its Executive Director since August 19, 2015. Mr. Pujara served as Non-Executive Director at India Home Loan Limited from August 21, 2008 to August 19, 2015. Mr. Pujara has an expertise in the areas of Finance, Capital & Stock Market Operations. He holds Bachelor of Commerce degree and has been instrumental in the company's growth in the home loan segment.
India Home Loan Limited (IHLL) is a Housing Finance Company (HFC) which offers retail home loan product for affordable housing segment. Under this product, loans are offered to the customers for Purchase of home, home improvement, home extension and for construction of a dwelling unit on an owned plot of land. India Home Loan Limited formerly known as (MHFCL) Manoj Housing Finance Company Ltd which was incorporated on 19th Dec 1990 under the Companies Act, 1956 in Maharashtra. In 2009, the name of Manoj Housing Finance Company Ltd has been changed to India Home Loan Limited. India Home Loan Limited is a BSE listed company. The company came out with an IPO (Initial Public Offering) in 1995 to augment its long-term resources to meet the needs of the business of housing finance and enhance its borrowing capacity by improving its net worth. Presently the company operates from branches in Urban, Semi-Urban &Rural areas of Maharashtra and Gujarat with own offices, DSA (Direct Selling Agents) and Business partners.
As all the real estate and housing finance companies got big boost from the Finance Minister in the last Union Budget, how are you planning to exploit this opportunity?
We are already addressing the affordable housing segment and have a strong presence in this market in Gujarat. While in Gujarat our focus remains on major cities like Ahmedabad, Vadodara and Surat, cities under our focus in the state of Maharastra include certain pockets in the outskirts of Mumbai and also places like Dombivali, Kalyan, Bhiwandi and Jalgaon and also expanding further in the adjacent areas where major developments in reference to real estate activities are taking place. Being a leading player in this segment, I must say we will aggressively pursue our targets through our network of DSAs across the country and mainly in the western states and directly with the developers of affordable housing segment. Toeing the line of the central government, our contribution will remain significant in this segment in the next three to five years to begin with.
As we have seen most of the banks have lowered the lending rates, can you throw some light about how much impact would it have to reduce India Home Loan's cost of capital?
Overall 1 - 2 % has been the impact due to reduction in rate of interest in the broader market. However, I must tell you here that the government initiative (CLSS) in passing on subsidy on the interest will have significant impact on the interest cost reducing it by 4 - 6 % per annum and this is going to encourage the aspiring home-buyers as well as the players in the real estate market. We can also tell you this will strengthen business of companies like us.
Most of the financial institutions are finding their ways to housing finance sector, do you see any threat to your company because of this boom? As per you, what are the major challenges you have in this business and how are you planning to combat them?
Competition from bigger group is a threat but the market is too big and we are still a growing player and we do not see this affecting us significantly. The home loan segment as you are aware has been expanding fast and lots of people in the thirties are going for home buying. So there is adequate space for each of the players in this segment, be it the bigger ones and the smaller ones. Also note that the expansion in the smaller segment is equally fast, rather faster than the bigger segment. We have enough space to play and this will help to strengthen our topline in the next one to two years, for sure.
How will JM Financial as investor help the company in scaling up your existing housing finance business?
Their present infusion in equity capital and the possible future infusions as the company grows will certainly help us in consolidating our position. This is a big and significant development in our company.
Apart from housing finance, do you have any plans to diversify your business in other lending segment of finance?
We are focused only on home loans, LAP and construction finance to developers of affordable housing projects and for now we wish to stay glued in these core areas where we have our expertise. Expansion or further spread, as you may say, will come at a later stage. Now is the time to make our mark more significant in the home loans segment.
Do you have any plans to expand the companies target regions other than Maharashtra and Gujarat? Do you have any plans to spread wings beyond your existing presence?
In the immediate future, we will continue to focus on these two states, Gujarat and Maharashtra only while we have already started exploring markets in various cities in Rajasthan. So while we strengthen our presence in western India, gradually at a later stage, we may opt for entering into northern Indian states, like Rajasthan.
Do you have any plans to change in you capital structure? At what rate are you expecting your loan book to grow in the Calender year 2017? If you can throw some light on you financials and its outlook?
As capital infusion takes place, our capital structure may undergo some changes but the present promoter group would continue to manage the affairs. We expect to grow from present Rs 32 cr to about Rs 48 cr by March 17, > Rs 200 cr by March 18 and close to Rs 350 cr by March 19.
Your message to shareholders?
The company is on the growth path and growing stronger. We can assure of a strong organic growth during the next two years.
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