Chennai-based Shriram Finance Ltd. announced on Friday the consolidation of its green finance initiatives under a new vertical.
According to a statement, the new vertical, Shriram Green Finance, will focus on financing sustainable projects, including electric vehicles, battery charging stations, renewable energy products and energy-efficient machinery.
With this initiative, Shriram Finance seeks to play a pivotal role in India’s growing green economy by supporting the country’s transition to cleaner, more sustainable energy sources.
The company aims to achieve an asset under management of ₹5,000 crore within the next three to four years for the Shriram Green Finance vertical.
A Broader Scope for Green Financing
“The launch of Shriram Green Finance vertical is a milestone in Shriram Finance’s journey toward fostering sustainable and inclusive growth,” said Umesh Revankar, executive vice chairman of Shriram Finance Ltd., in the statement.
“This initiative aligns with the global shift toward a greener economy, and we aim to create long-term value by balancing profitability with purpose.”
The company plans to raise global and domestic funds focused on green investments to achieve its ambitious targets.
It also engages with original equipment manufacturers producing EVs and related products. Initial efforts will be concentrated in key regions, including Karnataka, Kerala, the National Capital Region and Maharashtra.
Sustainability at the Core
“At Shriram Finance, we view sustainability as an essential driver of progress. The Green Finance vertical exemplifies our vision to build a sustainable ecosystem that benefits all stakeholders. This initiative underscores our dedication to enabling customers and partners to thrive in a low-carbon economy,” said YS Chakravarti, managing director and CEO of Shriram Finance, in the statement.
India’s electric vehicle (EV) sector is rapidly expanding, driven by ambitious government policies, technological advancements, and growing environmental awareness.
EV sales and the charging infrastructure sector are proliferating, with fast charging and battery-swapping technologies prioritized to enhance convenience.
Sales of EVs and the development of charging infrastructure are expanding at a record pace, with fast charging and battery-swapping technologies becoming priorities for industry stakeholders.
The press statement added that Shriram’s dedicated financing for these initiatives positions the company to capitalize on these trends.
While the market for energy-efficient machinery is still in its infancy, the company’s involvement in this sector could support growth and innovation.
This initiative promises to enhance the company’s growth prospects and empower customers and communities to participate actively in the low-carbon economy, setting a benchmark for corporate responsibility and innovation in the financial sector.
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