Mumbai: The diversified Aditya Birla group expects its financial services vertical to log in 19-21 percent growth annually in the next three to five years ending FY20.
Addressing the media while launching an omnichannel D2C (direct to customer) online platform, Kumar Mangalam Birla, the chairman of the group that straddles cement, textiles, metals, financial services, telecom and retail, said, "The three leading components of our financial services vertical -- credit, investment and insurance -- are expected to grow at a compounded annual growth rate of 19-21 percent over the next three to five years."
He further said Aditya Birla Capital is now one of the fastest growing businesses within the group and has emerged as a key growth engine. The new platform is expected to accelerate growth and take leadership position in the financial services space by serving as a growth catalyst across the group ecosystem.
Aditya Birla Capital chief executive Vishakha Mule said the new distribution channel registered as a Aditya Birla Capital Digital was developed with an investment of Rs 100 crore over the past one year and has a people strength of around 400.
While the group serves 250 million customers, most of whom come from its mobile services arm Vodafone Idea with around 215 million customers, the financial services verticals which includes an NBFC, life insurance, asset management, health insurance and housing finance, has around 35 million customers and hopes to nearly double it over the next three years.
"We hope to incrementally acquire at least 30 million more customers over the next three years and hope the new platform playing a bigger role in achieving this," Mule said but refused to proffer a number in terms of incremental customer addition or sales.
She said the platform, available as a website, mobile app, branches, and virtual engagement channels, will offer 22 products and services from within the group and those like digital gold and wallets will be partnered with. Some of the services being offered include UPI payments, bill payments, online recharges, loans, insurance, and investment options among others.
Over the last two years, Aditya Birla Capital’s NBFC arm’s AUM has grown by about two times to over Rs 1 trillion, becoming the fourth largest nonbank lender, health insurance has grown at a Cagr of 43 percent, becoming the fastest growing standalone health insurer and the AUM of the AMC business stood at Rs 3.11 trillion as of December 2023.
In the first nine months of FY24, Aditya Birla Capital's consolidated revenue grew 22 percent to Rs 23,566 crore and consolidated net income clipped at 44 percent to Rs 2,090 crore. In terms of physical presence, it has 1,462 branches across the country, with over 500 branches added in the last two years, Birla said.
