Tourism and Vizhinjam hold great potential for Kerala: Umesh Revankar

Thiruvananthapuram: The Vizhinjam port project and the growth of tourism in Kerala hold immense potential for the state’s economic future, said Umesh Revankar, Vice Chairman of Shriram Finance.

According to him, Vizhinjam will open up major opportunities in cargo movement, extending beyond logistics to production and value-added industries. “Kerala has a promising future through this project. In the commercial vehicle sector alone, we expect growth of up to 20%, especially in the large container truck segment,” he said.

Revankar further noted that while the arrival of larger trucks in Kerala has already begun, the company continues to focus primarily on small commercial vehicles. Currently, large container operators serving Kerala come from outside the state. However, the development of warehouses and logistics parks within Kerala could attract huge investment, turning the sector into a new industrial hub. This would open doors for businesses that collect, store, and add value to products.

On the tourism front, he pointed out that Kerala’s scenic beauty itself is a major attraction. A large portion of Shriram Finance’s vehicle loans in the state goes to tourist taxis.

Business in Kerala

Currently, Shriram Finance commands a 10% market share in vehicle loans in Kerala, managing loans worth ₹12,000 crore in the state. Of this, nearly 80% are for commercial and passenger vehicles. As of now, commercial vehicle loans account for ₹7,389.87 crore, while passenger vehicle loans stand at ₹4,875.57 crore, with most of the latter used for tourist purposes.

Loans worth ₹831.35 crore have been provided for construction equipment, ₹543.96 crore for two-wheelers, and ₹49.08 crore under gold loans.

Interest rates and lending

Revankar explained that while the Reserve Bank of India may reduce its policy rates, non-banking financial companies (NBFCs) do not immediately pass on the benefit to customers. “Banks can transfer about 15% of the benefit quickly, but the remaining 85% takes time. The full advantage of lower interest rates is felt only when existing loans mature and customers avail new loans, which can take up to 18 months,” he said.

Overall growth targets

Nationally, Shriram Finance aims to expand its assets under management to ₹3 lakh crore by the end of this financial year, up from the current ₹2.7 lakh crore, targeting a 15% growth rate. In the first quarter ending in June, the company has recorded 16% growth.

The company operates 3,225 branches across India and plans to open 100 new branches every year. It currently manages gold loans worth ₹6,000 crore nationwide and aims to raise this to ₹10,000 crore within two years.