### **Overview** Cholamandalam Financial Holdings Limited (CFHL) is a systemically important core investment company regulated by the Reserve Bank of India (RBI), operating under the 125-year-old Murugappa Group. The company serves as the financial services arm of the conglomerate, focusing on investment management, insurance, NBFC lending, risk advisory, and digital transformation across India. With a strong presence in tier 2–5 towns and rural markets, CFHL continues to deepen its penetration in underserved geographies while maintaining a diversified and resilient business model. --- ### **Parent Organization – The Murugappa Group** - **Founded**: 1900 | **Headquarters**: Chennai, India - **Total Revenue (FY25)**: INR 77,881 Crore (~USD 9.3 billion) - **Employees**: Over 83,500 across India and internationally - **Sectors**: Agriculture, engineering, financial services, auto components, EVs, sugar, abrasives, fertilizers, and plantations - **Listed Entities**: 9, including CFHL, Cholamandalam Investment & Finance Company Ltd (CIFCL), and Cholamandalam MS General Insurance Company Ltd (CMSGICL) - **Key Brands**: Chola, Chola MS, BSA, Montra, Hercules, Ajax, Parry’s, Gromor - **Core Values**: Integrity, quality, professionalism, sustainability - **Global Tie-Ups**: Mitsui Sumitomo (Japan), Morgan Advanced Materials, Yanmar, SQM --- ### **Business Segments & Subsidiaries** #### **1. Cholamandalam Investment & Finance Company Ltd (CIFCL)** – Core NBFC Lending Arm CIFCL is the primary lending subsidiary, focused on retail financing with a strong emphasis on first-time and credit-inclusive borrowers. ##### **Lending Focus & Products:** - **Target Customers**: Retail borrowers, first-time financiers, self-employed, small business owners, low-income groups - **Geographic Reach**: 26 Indian states and 7 Union Territories - **Key Lending Products**: - Vehicle Financing (Private cars, two-wheelers, commercial vehicles) - Loans Against Property (LAP) - Affordable Home Loans - Consumer Durables (CD) Loans - Secured Business & Personal Loans - Gold Loans (launched in FY26) ##### **Retail Focus & Market Positioning**: - **Home Loan (HL) Business**: - **AUM**: ₹13,404 Crore (as of Mar 2024) – up 59% YoY - **Disbursements**: ₹6,362 Crore in FY24 (vs ₹3,830 Cr in FY23) - **Active Accounts**: 1.10 lakh (Mar 2024), up 58% YoY - **Average Loan Size**: ₹13 Lakh | **Avg. LTV**: 50% - **Portfolio Mix**: 97% from Tier II, III, IV cities; 83% business owners; 24% first-time borrowers - Focus: Self-construction loan financing for lower middle-income groups - **Consumer Durables (CD) Loans**: - Launched in FY24 in partnership with a major mobile OEM - Expanded to **22 states**, **54,000 dealers** by FY25 - Introduces **Open Market CD financing** via direct OEM partnerships - Dedicated **customer onboarding platform** launched - **D2C Channel (Direct to Customer)** introduced in Q4 FY23: Offers pre-approved loans digitally, eliminating intermediaries - **Gold Loans**: New segment entry in FY26 to support financial inclusion and collateral-based lending ##### **Digital Transformation & Technology**: - **Chola One**: Integrated super app and unified digital platform for customer services, employee tools, and field operations - **Gaadi Bazaar**: Digital platform for buying/selling new & used vehicles, auctioning repossessed inventory, and broker visibility - **In-House Tech Development**: Reduced reliance on third-party tech partners; hybrid model combining internal builds with best-of-breed tools - **Cybersecurity & Data Privacy**: Strong focus on data protection, aligned with evolving regulations; dedicated internal and external security teams - **Digital Workforce Investment**: Upskilling for scalable, future-ready digital operations ##### **Distribution & Partnerships**: - **OEM Collaborations**: Tied up with **all major private car, two-wheeler, and commercial vehicle OEMs**, including Honda, KIA, MG, Maruti, RE, Toyota - **Dealer Network**: Serves **over 12,000 dealerships** nationwide - **Multiple Lending Channels**: Chola Finance, Coromandel, Countrywide Independent Entrepreneurs (CIEs) --- #### **2. Cholamandalam MS General Insurance Company Ltd (CMSGICL)** – Insurance Arm CMSGICL offers general insurance products with a strong retail focus and diversified portfolio strategy. ##### **Insurance Portfolio Mix (as of Jun 2023)**: | Product Category | % of Portfolio | |-------------------------|----------------| | Motor Insurance | 60% | | Commercial Lines (incl. SME) | 16% | | Health Insurance | ~15% | | Personal Accident (PA) | ~6% | | Crop Insurance | ~3.1% | > *Note: Strategic underwriting discipline avoids high-loss, low-cost segments like government health tenders.* ##### **Distribution Model**: - **Multi-Channel Strategy**: Bancassurance, agency network, OEM partnerships, digital platforms - **Bancassurance Network**: - **>38,000 bank branches** across India - Partnerships with: - 4 PSU Banks - 4 Private Banks - 3 Small Finance Banks (SFBs) - 6 RRBs - 1 Cooperative Bank - 30+ NBFCs - 5 HFCs - **Agency Channel**: - Supports **>60,000 Point-of-Sale Promoters (POSPs)/Agents** - Supported by: 198 physical offices, 128 digitally enabled offices, 342 virtual offices (as of Aug 2025) - **Captive Channel** (Chola Finance, Coromandel, CIEs): Reduces dependency, contributes ~30%+ of GWP - **Long-Lasting Channels**: IndusInd Bank (15-year tie-up), Toyota (CAGR of 28.6%) ##### **Rural & Government Platforms**: - **Common Service Centre (CSC)**: - **Ranked #2 insurer** on the CSC platform (as of Aug 2025) - Captures **~20% of insurance wallet share** in rural India - **Rural Reach**: - Originates business from **168,000 gram panchayats** - Manages **1 crop insurance cluster in Maharashtra** ##### **Retail Focus**: - 22.9% CAGR in retail policy count (2015–2021) - Targets retail segments: motor, personal accident, retail health, travel - Minimal exposure to tour operators or high-risk mass enrollment schemes --- #### **3. Cholamandalam MS Risk Services Ltd (CMSRSL)** – EHS & Risk Engineering JV A joint venture between Murugappa Group and **Mitsui Sumitomo Insurance (Japan)**, CMSRSL is a leading provider of Environment, Health & Safety (EHS) consulting and technical risk engineering services. ##### **Key Facts (as of Jul 2025)**: - **Employees**: Over 500 EHS professionals - **Projects Completed**: 15,000+ across 50+ sectors - **Presence**: India and Middle East (strong UAE footprint via agency agreements) - **Clients**: Fortune 500, PSUs, manufacturing, pharma, oil & gas, renewables - **Part of Inogen Alliance**: Offers globally benchmarked ESG, net zero, and safety solutions ##### **Services Offered**: - Risk engineering & safety audits - Thermography & process safety studies - Cargo loss minimization - Contractor safety training - Digital EHS tools (e.g., SHE Genie app, virtual DMC) - Climate, water, and biodiversity risk assessments - Net zero and zero waste to landfill consulting ##### **Growth & Expansion**: - New service lines in FY25: **Ethanol, Biological Safety, Climate & Water Risk** - Japanese parent supports entry of Mitsui-linked firms into India - Digital division launched to develop AI-integrated risk tools - Expanded into UAE market through Numero Uno Training & Consulting --- ### **Strategic Growth Initiatives (FY25–FY26)** - **Digital First**: Chola One app consolidation, Gaadi Bazaar, D2C lending, and digital underwriting - **Geographic Deepening**: Tier III–VI cities remain focus for margin improvement and market share - **Product Diversification**: Entry into **gold loans** and **consumer durables (CD) financing** - **International Expansion**: Strategic entry into **Saudi Arabia** and **Middle East**, leveraging CMSRSL experience - **FY26 Order Book**: ~₹63 crore in strategic, executable orders — revenue visibility for the year --- ### **Financial & Operational Strengths** - **Retail-Centric Model**: Focused on underserved populations with deep rural & semi-urban presence - **Diversified Distribution**: Multi-channel model de-risks revenue streams - **Asset Quality Improvement**: Strengthened collection and legal recovery; steady decline in **Stage 3 (NPA) loans** - **Technology Integration**: Hybrid tech stack, in-house development, strong cybersecurity governance - **Regulatory Compliance**: Proactive alignment with data privacy, RBI norms, and financial regulations --- ### **Corporate Strategy & Vision** CFHL aims to be a leading pan-India financial services provider with a **"decentralized, digitally-enabled, customer-first"** approach. The company is transforming from a traditional financier into a tech-powered financial ecosystem player, with: - **Chola One** as the central customer platform - **Rural-first** distribution via CSC and bank partnerships - **Sustainability leadership** through CMSRSL in the ESG advisory space - **Inclusive finance** via gold loans, LAP, home loans, and D2C models ---