Shriram Finance Limited, a leading player in India’s financial services sector and the flagship company of the Shriram Group, has launched a new vertical named Shriram Green Finance, consolidating its green financing initiatives under one umbrella. This strategic move is aimed at streamlining the company’s efforts in sustainable solutions, extending beyond electric vehicles, and aligning with its long-term sustainability objectives.
The new vertical will focus on building a comprehensive green finance portfolio, supporting a range of initiatives including electric vehicles (EVs), battery charging stations, renewable energy products, energy-efficient machinery, and other sustainable technologies. Shriram Finance has set an ambitious target to achieve an Asset Under Management (AUM) of ₹5,000 crore in this segment within the next three to four years.
With its expansive customer base, particularly in semi-urban and rural regions, Shriram Green Finance aims to broaden access to green financing solutions. To support this initiative, the company is exploring opportunities to raise both domestic and international funds dedicated to green investments.
Speaking about the launch, Umesh Revankar, Executive Vice Chairman of Shriram Finance, highlighted the importance of sustainability in economic growth. “The launch of Shriram Green Finance marks a step toward fostering sustainable growth and empowering stakeholders with financial solutions that support a greener economy,” he said.
S. Chakravarti, Managing Director and CEO of Shriram Finance, shared the same sentiments, emphasising the importance of sustainability in driving progress. “Our Green Finance vertical aligns with Shriram Finance’s vision of aiding stakeholders in transitioning to a low-carbon economy,” he remarked.
The announcement comes amid rapid growth in India’s EV sector, bolstered by government incentives, technological advancements, and rising environmental consciousness. The expansion of charging infrastructure, including fast charging and battery-swapping technologies, further complements the sector’s development.
Shriram Green Finance plans to prioritise its EV portfolio initially in Karnataka, Kerala, the National Capital Region (NCR), and Maharashtra. The company is collaborating with original equipment manufacturers (OEMs) of EVs to establish long-term partnerships, ensuring accessible and affordable financing for EV buyers.
While India’s energy-efficient machinery segment remains nascent, the renewable energy sector is experiencing robust growth, driven by government initiatives and an increasing focus on sustainability. These developments present significant opportunities for Shriram Green Finance to diversify and strengthen its green finance offerings.
This initiative underscores Shriram Finance’s commitment to supporting India’s transition to a sustainable, low-carbon future.
