Shriram Transport Finance Company (STFC) today said its Managing Director R Sridhar will be stepping down to take

over as managing director and chief executive of the group holding company. Sridhar, who has been with STFC since 1985 and has risen through the ranks to become the MD, will step down with effect from March 31 and join Shriram Capital (SCL), a statement said. He has been serving as the managing director of STFC since 2000 and the company grew under his leadership to become the largest vehicle financing company in the country. Sridhar will be taking over as the MD and CEO of SCL from April 1, for which he will have to relocate to Chennai. SCL is the apex holding company for financial services entities in the Shriram Group, the statement said, adding Shriram Ownership Trust holds 85% stake in the entity, while the rest lies with private equity major Texas Pacific Group. In his new job, Sridhar will be involved in group-level activities like strategic planning, capital markets relationships including banks, investment banks, private equity firms and rating agencies, it added. "This move had been planned for several months to take advantage of the relationships Sridhar has built with the financial community, regulators, media and others on a broader platform of Shriram Capital," Shriram Capital Chairman Arun Duggal said. Shriram will continue to serve on the STFC board as a group nominee, the statement said.

Mumbai, Maharashtra, March 26, 2012 /India PRwire/ -- Mr.R. Sridhar, presently the Managing Director of Shriram Transport Finance Company Limited (STFC) has been appointed as "Managing Director & Chief Executive Officer" of Shriram Capital Limited (SCL) with effect from 1St April 2012. Consequently, he has stepped down from his position as the Managing Director of Shriram Transport Finance Company with effect from March 31, 2012. He will continue to serve on the Board of Directors of Shriram Transport Finance Company as a nominee of Shriram Group. In order to take up his new responsibilities in Shriram Capital, Mr.Sridhar will be relocating to Chennai. SCL is the apex holding company for the financial services entities in the Shriram group, where the Shriram Ownership Trust holds 85% stake and the balance 15% is held by the private equity major Texas Pacific Group. Mr. Sridhar will be involving in a number of Shriram Group level activities including Strategic Planning, Capital Markets Relationship including Banks, Investment Banks, Private Equity firms, Rating Agencies, etc. as well as investor relations for all the financial services entities within the Shriram Group. Mr. Arun Duggal, Chairman of Shriram Capital said, "Mr.Sridhar has done a commendable job in the last many years and I am delighted on the appointment of Mr. Sridhar as Managing Director and Chief

Executive Officer of Shriram Capital. This move had been planned for several months to take advantage of the relationships Mr. Sridhar has built with the financial community, regulators, media and others on a broader platform of Shriram Capital. I look forward to working closely with Mr. Sridhar in the coming years to further strengthen and grow Shriram Capital." Mr.R.Sridhar-Profile: Mr. Sridhar has been associated with STFC since 1985. He was appointed as the Managing Director of STFC for the first time in the year 2000 and was reappointed in the year 2005. Under his leadership STFC grew in leaps and bounds and has become the largest asset financing NBFC in India. During his tenure as the MD of STFC, the market capitalization, which was Rs.20 Crs, peaked to Rs.20000 Crs. and its assets under management soared from Rs. 2000 Crs to over Rs.40000 Crs. Mr. Sridhar holds a bachelor's degree in Science and is a fellow member of the Institute of Chartered Accountants of India. He has over twenty five years of experience in the financial services sector, especially in commercial vehicle financing. He is the General Secretary of the Western India Hire Purchase Association, Vice President of the Federation of Indian Hire Purchase Association, Chairman of Finance Industry Development Council, a self-regulatory organization for NBFC-AFCs. He is also member of the Corporate Bond and Securitisation Advisory Committee of Securities and Exchange Board of India and a member of Advisory Group on NBFCs constituted by Ministry of Finance, Govt. of India. Mr. Sridhar is the recipient of Ernst & Young's entrepreneur of the year - Manager Award 2011 and Business Achiever Award from Institute of Chartered Accountants of India (ICAI) for the year 2010-11. Notes to Editor About Shriram Transport Finance Company Ltd. Shriram Transport Finance Company Limited is the flagship company of the Shriram group which has significant presence in Consumer Finance, Life Insurance, General Insurance, Stock Broking, and Distribution businesses. Incorporated in 1979, Shriram Transport is today the largest asset financing NBFC in the country and holistic finance provider for the commercial vehicle industry and seeks to partner small truck owners for every possible need related to their assets. It has PAN India presence with 494 branch offices. Based in Mumbai, it manages assets worth Rs 39,260 crores and has a customer base exceeding 8,00,000. Shriram in the last 30 years, has helped replace nearly 20 lakhs trucks by providing affordable acquisition credit to the small truck operators.

. Sridhar has been appointed as Managing Director & Chief Executive Officer of Shriram Capital Limited (SCL) with effect from April 1, 2012, he is currently serving as the Managing Director of Shriram Transport Finance Company Limited (STFC).

R Sridhar. Photo: rediff.com

Consequently, he has stepped down from his position as the Managing Director of Shriram Transport Finance Company and will continue to serve on the Board of Directors of Shriram Transport Finance Company as a nominee of Shriram Group. In order to take up his new responsibilities in Shriram Capital, Sridhar will be relocating to Chennai. SCL is the apex holding company for the financial services entities in the Shriram group, where the Shriram Ownership Trust holds 85% stake and the balance 15% is held by the private equity major Texas Pacific Group. Sridhar will be involving in a number of Shriram Group level activities including Strategic Planning, Capital Markets Relationship including Banks, Investment Banks, Private Equity firms, Rating Agencies, etc. as well as investor relations for all the financial services entities within the Shriram Group. Arun Duggal, Chairman of Shriram Capital said, Sridhar has built with the financial community, regulators, media and others on a broader platform of Shriram Capital. I look forward to working closely with Mr. Sridhar in the coming years to further strengthen and grow Shriram Capital. Sridhar has been associated with STFC since 1985. He was appointed as the Managing Director of STFC for the first time in the year 2000 and was reappointed in the year 2005.

During his tenure as the MD of STFC, the market capitalization, which was Rs 20 crore, peaked to Rs 20000 crore and its assets under management soared from Rs 2000 Crore to over Rs 40000 Crore. He holds a bachelors degree in Science and is a fellow member of the Institute of Chartered Accountants of India. He has over twenty five years of experience in the financial services sector, especially in commercial vehicle financing. He is the member of the Corporate Bond and Securitisation Advisory Committee of Securities and Exchange Board of India and a member of Advisory Group on NBFCs constituted by Ministry of Finance, Government of India.

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Shriram Capital appoints R Sridhar as managing director, CEO Posted: Mon, March 26, 2012 | 4:12 PM IST

New Delhi: Shriram Capital Ltd, the apex holding company for the financial services entities of Shriram Group, has appointed R Sridhar as its new managing director and CEO with effect from April 1, 2012. In his new role, he will be responsible for a number of Shriram Group level activities like strategic planning, capital markets relationship, including banks, investment banks, private equity firms, and rating agencies, among others, Shriram Capital said in a statement. Consequently, Sridhar will step down as Managing Director of Shriram Capital-promoted asset financing company Shriram Transport Finance Co with effect from March 31, 2012, the statement said. However, Sridhar will continue to serve on the board of directors of Shriram Transport Finance as a nominee of Shriram Group, it said. "This move had been planned for several months to take advantage of the relationships Sridhar has built with the financial community, regulators, media and others on a broader platform of Shriram Capital. I look forward to working closely with Sridhar in the coming years to further strengthen and grow Shriram Capital," Arun Duggal, chairman of Shriram Capital, said in the statement.

Financing truck purchases may not be what aspiring entrepreneurs have always dreamed of. But R. Sridhar, the 53-year-old Managing Director of Shriram Transport Finance Company, or STFC, has given it appeal by building a large, profitable company with innovative and aggressive business models. The numbers are impressive. When Sridhar took over as Managing Director in 2005, STFC was a medium sized non-banking Naveen Jindal finance company, or NBFC, with assets of Rs A.M.Naik 5,000 crore, a net profit of Rs 50 crore, and a Y.C. Deveshwar market capitalisation of Rs 500 crore. Today, Bhaskar Bhat it is the largest asset financing NBFC in India, Sunil Mittal with an asset book of Rs 18,000 crore, profits R. Sridhar of Rs 1,230 crore and a Rs 36,000-crore The other nineteen market capitalisation. In fact, Sridhar is No. 1 on both country-adjusted and industryPictures: Hall of Fame | The top 25 CEOs adjusted total shareholder returns in the BTINSEAD-HBR Best CEOs ranking. He is preparing to take up greater responsibility from April at Shriram Capital, the holding company of the Chennaibased Shriram Group. KNOW MORE ABOUT Click here to Enlarge It was a crisis that brought out the best in the soft-spoken, jovial Sridhar, a chartered accountant raised in Chennai. In 1998, the NBFC sector was reeling after CRB Capital Markets and a few other finance companies collapsed, leaving thousands of investors in the lurch. Reserve Bank of India's knee-jerk reaction - tightening regulation by imposing prudential and capital adequacy norms - saw more investors foreclosing deposits, triggering a massive asset-liability mismatch in the sector. Thousands of NBFCs went out of business. Many expected the Shriram group to fail, too. Group companies, including STFC, depended on public deposits and risk-averse Indian banks for funds. Sridhar was then President of STFC, which handled the group's truck funding operations in western India. "We had a good business model on the assets side - lending to small truck owners," he says. "The problem was on the liability side, which is the funding support." So he drew up a portfolio management plan. MUST READ: 'Relationship-based model behind our success' | WATCH: Exclusive interview with R Sridhar

"We had the capacity to lend to and collect repayments from a niche segment - small truck operators," he says. Some borrowers were onetruck operations. The banking system largely ignored them for lack of due diligence and collateral, but banks were keen on it as truck purchases was priority-sector lending. "In the portfolio management plan, the money came from banks, while STFC did the business for a fee," says Sridhar. STFC shifted from a fund-based business model to a fee-based one. Citicorp Finance, the NBFC arm of Citibank, was looking to deepen lending operations in India at the time, and liked the concept. It began to fund vehicle purchases with STFC. UTI Bank (now Axis Bank) followed suit. In three years, portfolio sales to the two banks crossed Rs 5,000 crore.

Sridhar's second innovation came in 2000. STFC began securitising its asset portfolio of old vehicles, and sold assets worth Rs 100 crore to Citibank. This opened another revenue stream for STFC. "At that time, portfolio management and securitisation were both aggressive strategies, which Sridhar resorted to for continuous finance to fuel STFC's growth," says G.S. Sundararajan, who was then Managing Director of Citibank's small and medium enterprises business, and is now Managing Director, Shriram Capital. "As banks were unwilling to lend, this was critical for the company's survival and growth." In 2002, Citicorp invested Rs 17 crore for a 15 per cent stake in STFC and another group company, Shriram Investments. "The Citicorp investment gave us credibility, and the model began to get noticed," says Sridhar. In 2004, UTI Bank picked up a stake. Soon, private equity players were knocking on the doors of STFC and other group companies. ChrysCapital's Rs 100-crore investment in the Shriram group's trucking business in February 2005 was the start of a lasting relationship with private equity players. ChrysCapital's only pre-condition was that the Shriram group merge all truck-financing companies into STFC. Sridhar was reappointed CEO of the merged entity. In 2006, global private equity firm TPG Capital then invested close to Rs 600 crore in it, and recent reports suggest that it may sell its STFC stake in the next few months for around Rs 3,000 crore. As STFC's credibility increased, Indian banks' confidence in the company grew, funds began to flow easily.

Today, STFC has relationships with 73 Indian banks. "We decided to go global," says Sridhar. "We met foreign institutional investors, and explained the model to them. They were impressed by the scale-up potential." His efforts paid off: STFC is among the scrips most tracked by institutional investors, and foreign institutional investors hold 63 per cent of its equity. In 2006, STFC ended its tie-ups with Citicorp and UTI Bank, and began to fund truck lending on its own. "The risk mindset had also changed," says Sridhar. Armed with copious funds, STFC grew from a truck finance company into one that financed commercial vehicle purchases. It began to meet the working capital needs of truckers, too. Sridhar's innovative strategies gave STFC the stability it needed, and enabled the group to diversify into insurance and consumer finance. The company is awaiting banking licence guidelines. Sridhar's elevation to the holding company seems in line with the planned banking venture, but he refuses to confirm it. All he says is that as a Carnatic music buff - he has recordings of more than 4,000 concerts - he looks forward to enjoying Chennai's annual music festival after a gap of 26 years.

R Sridhar appointed MD & CEO of Shriram Capital news 26 March 2012 Shriram Capital has announced the appointment of R Sridhar as managing director and chief executive officer Limited with effect from 1 April 2012, and will be based in Chennai. Sridhar is currently managing director, Shriram Transport Finance Company Limited, where he will relinquish charge from 31 March 2012. He had joined the company in 1985 and has been managing director since 2000. He will continue to serve on the board of directors of Shriram Transport Finance Company as a nominee of Shriram Group. Shriram Capital is the apex holding company for the financial services entities in the Shriram group, in which the Shriram Ownership Trust holds 85-per cent stake and the balance 15 per cent is held by the private equity major Texas Pacific Group. Sridhar holds a bachelor's degree in Science and is a fellow member of the Institute of Chartered Accountants of India. He has over 25 years of experience in the financial services sector, especially in commercial vehicle financing.