New Delhi: Tata Capital aims to create assets worth Rs 2,500 crore over next five years through its business partnership with Japan’s Century Tokyo Leasing Corporation.
The Indian company, through its wholly-owned subsidiary Tata Capital Financial Services, has entered into a business partnership with the Japanese company. The venture will offer leasing solutions through a separate ‘Leasing Division’ in TCFSL — Tata Capital Leasing Solutions.
At present, the equipment leasing market in India is estimated at Rs 20,000 crore and is expected to grow at an annual rate of 25-30 per cent over the next few years.
Services to be offered
The services proposed to be offered include a full spectrum of leasing solutions from plain vanilla to complex structures, across diverse industries and for all equipment.
Under the agreement, it is proposed to launch a ‘Japan-Desk’, which will be represented by senior officials of TC-Lease who will be based in India as part of the Leasing Division. The primary responsibility of the Japan Desk will be to source business from Japanese companies based in India.
Tata Capital’s Managing Director and Chief Operating Officer Praveen P. Kadle said, “It gives us expertise in lease operations. In many countries, leasing accounts for huge amount of capital formation. In advanced countries, leasing contributes almost 20 per cent of capital formation, in India it is just 1.5 per cent. So, in the time to come, we will see leasing playing an important role in capital formation.”
Century Tokyo’s President Shunichi Asada said, “Our experience in the field of leasing solutions and Tata Capital’s extensive network in India would help provide the right financing solutions and guidance to Japanese and other companies in India.”
The business partnership intends to form a joint venture once asset creation of Rs 2,500 crore is reached. However, no decision has been taken about the equity structure in the proposed joint venture.
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