November - 2015 - issue > Company of the Year-2015: Infrastructure

Srei BNP Paribas: The Pacesetter of Infrastructure Equipment Finance and Product Innovation

si Team
Tuesday, November 24, 2015
si Team
Srei started its journey more than 25 years ago with a dream to build the country's infrastructure. Better roads, more ports, uninterrupted power supply and rural development were critical for India's economic growth and welfare of its citizens. The government did not have sufficient funds to finance the infrastructure development and the need for private investment in this space was more severe than ever.

The journey began in a rather difficult and challenging environment. India was still a closed-economy and quality investments in infrastructure projects were unheard of. With Srei's incorporation, the wheel that never witnessed a movement started spinning. The introduction of Srei's pioneering equipment finance and rental services offered the industry a much needed boost. Following India's open-economy policy, the infrastructure market flourished and Srei led the way for other players in the market.

Creating Innovative Paths
Under the leadership of Hemant Kanoria and Sunil Kanoria Srei undertook the daunting task of contributing to India's infrastructure development. Srei formed a joint venture with BNP Paribas Lease Group in 2008 to create Srei Equipment Finance Limited (popularly known as Srei BNP Paribas), which quickly became the market bellwether in India. Devendra Kumar Vyas became the CEO of Srei BNP Paribas and transformed the market with his strenuous exertion and vision.

The joint venture led to improved efficiency in processes, risk management practices and aided entry into new equipment business verticals. SREI now offers a range of financial products for construction and mining, information technology, healthcare and farm equipment. The company has also started financing pre-owned equipment.

One of SREI initiatives 'Paison Ki Nilami', an auction predicated on the lowest interest bidder to get finance became very popular and transmuted the entire game. Vyas explicates, "We not only protected our market share, but were also able to cushion our people, manufacturers, and additionally our customers. In one evening of auction of financing the equipment, we were able to facilitate the sales of 100 pieces of equipment to the customers who used to come and bid for the financing and buy the equipment."

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