Mission Statement, Vision, & Core Values (2025) of Shriram Finance Limited.

An Overview of Shriram Finance Limited

General Summary of Shriram Finance Limited

Shriram Finance Limited, established in 1979, is part of the Shriram Group, a conglomerate with a significant presence in financial services. The company focuses on various financial products, including vehicle financing, personal loans, and insurance. It caters primarily to the underbanked and underserved sectors of India.

As of 2024, Shriram Finance Limited has achieved sales revenue of approximately ₹20,000 crore. The company’s diversified portfolio includes:

• Commercial Vehicle Financing
• Two-Wheeler Loans
• Personal Loans
• Insurance Products
• SME Financing

Financial Performance in Latest Reporting Period

In the latest financial report for the fiscal year ending March 2024, Shriram Finance Limited reported record-breaking revenues, reaching ₹25,000 crore, representing an increase of 15% year-on-year. The main contributors to this revenue surge were:

• **Vehicle Financing**: ₹18,000 crore
• **Personal Loans**: ₹3,500 crore
• **Insurance Premiums**: ₹2,500 crore

The company's net profit for the period stood at ₹3,500 crore, translating into a net profit margin of 14%. Additionally, assets under management (AUM) grew to ₹1.5 lakh crore, reflecting a healthy year-over-year growth.

Introduction to Shriram Finance Limited as an Industry Leader

Shriram Finance Limited stands out as one of the leading companies in the Indian financial services sector, particularly in vehicle financing and loans for small and medium enterprises. Its commitment to serving the underserved markets, combined with a robust growth trajectory and innovative financial solutions, positions it as a key player in the industry. The company's strategic focus on expansion into emerging markets further solidifies its leadership role.

Mission Statement of Shriram Finance Limited

Mission Statement Overview

The mission statement of Shriram Finance Limited encapsulates the company's commitment to empowering individuals and businesses through financial solutions that foster growth and provide access to better opportunities. This mission serves as a guiding light for the organization, influencing strategic decisions and operational practices to fulfill long-term goals.

Core Component 1: Empowering Customers

One of the primary focuses of Shriram Finance is to empower its customers. The company aims to enhance the financial wellbeing of its clientele by offering a diverse range of products tailored to their needs.

In FY 2023, Shriram Finance reported a customer base of over 6 million individuals, reflecting its expansive outreach. The company's focus on micro, small, and medium enterprises (MSMEs) has led to a growth in its loan book, which stood at approximately INR 1.5 trillion.

Core Component 2: Financial Inclusivity

Shriram Finance is dedicated to financial inclusivity, ensuring that even the underserved segments of society have access to essential financial services. This commitment is evident in the company’s efforts to tap into rural and semi-urban markets.

As of Q2 FY 2024, it was noted that nearly 65% of Shriram's lending clientele operates in non-urban areas, significantly contributing to the financial landscape's inclusivity. The company has extended over INR 300 billion in loans specifically targeting these regions in the past year.

Core Component 3: Sustainable Growth

The mission statement emphasizes sustainable growth, highlighting the balance between business success and social responsibility. Shriram Finance is committed to maintaining a robust financial performance alongside promoting responsible lending practices.

In FY 2023, Shriram Finance achieved a net profit of INR 25 billion, representing a 15% year-over-year growth. The company’s return on equity (ROE) for the year was at 18%, underscoring its efficient utilization of shareholders' funds while adhering to sustainable practices.

Vision Statement of Shriram Finance Limited

Vision Statement Components

The vision statement of Shriram Finance Limited encompasses several key components that reflect their aspirations and strategic direction for the future. The elements are centered around customer-centric values, innovation, and sustainable growth.

Customer-Centric Approach

Shriram Finance Limited aims to be the preferred financial services provider for customers across India. Their vision emphasizes building long-term relationships with clients by delivering tailored financial solutions.

Innovation in Financial Solutions

The company's vision includes a commitment to innovation, which is reflected in their investment in technology-driven financial products. Shriram Finance Limited aims to lead in digital finance and product offerings.

Sustainable Growth and Community Impact

Shriram Finance Limited's vision statement underscores their commitment to sustainable growth and community development. The company seeks to make a positive contribution to the economy while supporting local communities.

Core Values of Shriram Finance Limited

Integrity

Integrity is a foundational core value at Shriram Finance Limited, emphasizing honesty and transparency in all dealings.

The company has maintained a commitment to ethical practices, which is reflected in its adherence to regulatory standards and voluntary disclosures. For example, in the fiscal year 2023, Shriram Finance achieved a compliance rate of 98% in regulatory audits.

Additionally, Shriram Finance emphasizes training programs for employees, including a comprehensive code of conduct training that reached over 10,000 employees in the last year.

Customer Centricity

Customer centricity drives Shriram Finance's approach to service delivery, focusing on enhancing customer experience.

The company launched a new digital platform in 2023 that improved loan processing times by 30%. Customer satisfaction ratings have increased to over 85% based on internal surveys conducted semi-annually.

Moreover, Shriram Finance has implemented a customer feedback program that has already collected over 50,000 responses, leading to actionable insights for continuous improvement.

Innovation

Innovation is at the heart of Shriram Finance's strategy, enabling the company to adapt to changing market dynamics.

In 2023, the firm allocated ₹500 million towards technology upgrades and digital transformation initiatives. This includes implementing AI-driven data analytics to enhance risk assessment capabilities.

As a result, loan approval rates improved by 20% due to more efficient credit scoring methodologies introduced in the past year.

Collaboration

Collaboration fosters teamwork within Shriram Finance, enhancing productivity and operational efficiency.

The company has structured its teams to facilitate cross-departmental projects, successfully launching more than 15 collaborative initiatives that contributed to an increase in operational effectiveness by 25%.

Regular workshops and team-building exercises have been introduced, resulting in a measurable improvement in employee engagement scores, which currently stand at 75%.

Social Responsibility

Social responsibility underscores Shriram Finance's commitment to sustainable practices and community welfare.

In 2023, the company invested over ₹200 million in various CSR initiatives, targeting education, healthcare, and environmental sustainability.

For instance, the Shriram Education Program has supported over 5,000 underprivileged children with educational resources, while their eco-initiative has planted over 100,000 trees in partnership with local NGOs.