Piramal Enterprises: Transforming Finance With Innovation And Strategic Growth

Introduction To Piramal Enterprises Limited

Piramal Enterprises Limited (PEL) is a Mumbai-based Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India (RBI) from July 2022. With a strong presence across retail and institutional lending, PEL has strategically expanded its financial services portfolio to cater to diverse customer needs. The company offers home loans, SME loans, pre-owned car loans, microfinance, and digital purchase finance, leveraging its vast network of 487 conventional branches and 194 microfinance branches across 26 states and Union Territories as of March 2024. PEL’s retail lending business has been growing steadily, offering customers tailored financing solutions backed by robust risk management and technology-driven processes.

PEL's transformation in the financial sector accelerated following the demerger of its pharmaceutical business into Piramal Pharma Limited in 2022 and the merger of PHL Fininvest into PEL. A significant milestone in its journey was the acquisition of DHFL through a INR 34,250 crore resolution plan, strengthening its position in the housing finance space. The company also operates a strong fund management business through Piramal Alternatives, partnering with global investment giants like CPP Investments and Ivanhoe Cambridge. Additionally, its 50% stake in Pramerica Life Insurance and investments in the Shriram Group further solidify its footprint in India’s retail and institutional financial ecosystem. With a focus on innovation, strategic expansion, and strong corporate governance, Piramal Enterprises continues to reshape India’s financial services landscape.

Board Of Directors Of Piramal Enterprises Limited

As per the latest information available, the Board of Directors of Piramal Enterprises Limited comprises the following individuals:?

1. Ajay Piramal – Chairman and Executive Director?
2. Dr. Swati A. Piramal – Vice Chairperson and Executive Director?
3. Anand Piramal – Executive Director, Piramal Group?
4. Nandini Piramal – Non-Executive Director?
5. Vijay Shah – Non-Executive Director?
6. Kunal Bahl – Independent Director?
7. Suhail Nathani – Independent Director?
8. Anjali Bansal – Independent Director?
9. Puneet Dalmia – Independent Director?
10. Shikha Sharma – Non-Executive Director?
11. Rajiv Mehrishi – Independent Director?
12. Gautam Doshi – Independent Director?
13. Anita George – Independent Director?
Please note that board compositions can change over time. For the most current information, please refer to Piramal Enterprises Limited's official website or their latest corporate filings..

Source: Piramal Enterprises Limited¹

Products Offered By Piramal Enterprises Limited

?Piramal Enterprises Limited (PEL) is a leading diversified Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India (RBI), offering a comprehensive range of financial products and services across retail lending, wholesale lending, and fund-based platforms. Below is an overview of the key products and services offered by PEL:?

1. Retail Lending

PEL provides a multi-product retail lending platform catering to the financial needs of individuals and small businesses, particularly in affordable housing and mass affluent segments across tier I, II, and III cities. The primary offerings include:?

A. Home Loans: Tailored for customers seeking financing for purchasing or constructing homes, these loans offer competitive interest rates and flexible repayment options.?
B. Small Business Loans: Designed to support micro, small, and medium enterprises (MSMEs), these loans provide working capital and growth capital to businesses, facilitating their expansion and operational needs.?
C. Digital Purchase Finance: PEL offers financing solutions for digital purchases, enabling customers to manage their expenses effectively.?

2. Wholesale Lending

PEL extends financing solutions to real estate developers and corporate clients across select sectors. The wholesale lending portfolio includes:?

A. Real Estate Financing: Providing funding for residential and commercial real estate projects, supporting developers in project execution and completion.
B. Corporate Financing: Offering customized financial solutions to corporates in sectors such as infrastructure, renewable energy, hospitality, logistics, industrials, and auto components, aiding in capital expenditure and operational funding.
3. Fund-Based Platforms

Through strategic partnerships with leading global financial institutions, PEL has established fund-based platforms to offer specialized financing solutions:?

A. Piramal Alternatives: The fund management business of PEL provides customized financing solutions to high-quality corporates through various funds, including:?

1. Piramal Credit Fund: A performing, sector-agnostic credit fund with capital commitment from CDPQ, offering flexible financing options to corporates.
2. India Resurgence Fund (IndiaRF): A distressed asset investing platform in partnership with Bain Capital Credit, investing in equity and/or debt across non-real estate sectors, aiming to revitalize financially stressed companies.

4. Loan Against Mutual Funds

PEL offers loans against mutual funds, allowing investors to leverage their mutual fund investments to access liquidity without redeeming their holdings. This product provides flexibility to investors to meet their financial requirements while maintaining their investment portfolio.

5. Life Insurance

Through a 50% stake in Pramerica Life Insurance, a joint venture with Prudential International Insurance Holdings, PEL offers life insurance products, providing customers with risk protection and financial planning solutions.?

6. Strategic Equity Investments

PEL holds equity investments in the Shriram Group, a leading financial conglomerate in India, enhancing its presence in the financial services sector and diversifying its investment portfolio.?

Through these diverse products and services, Piramal Enterprises Limited addresses the varied financial needs of its customers, reinforcing its commitment to fostering innovation and delivering superior value in the financial services industry.

Innovation Technology At Piramal Enterprises

Piramal Enterprises Limited (PEL) is leveraging technology and innovation to enhance its financial services, focusing on digital transformation, automation, and AI-driven solutions. The company has established a Centre of Excellence to drive robotic process automation (RPA), business intelligence, and data analytics, leading to improved efficiency and seamless customer experiences. Its AI-powered lending platform streamlines processes, ensuring faster approvals and better risk management.

To enhance operational efficiency, PEL has migrated critical functions like HR management and corporate websites to cloud platforms, adopting Microsoft Office 365 for improved collaboration. The company also prioritizes data security, implementing a Data Privacy Management Framework to protect sensitive information. By integrating fintech partnerships, digital lending platforms, and automation, PEL continues to redefine financial services, making them more accessible, agile, and customer-centric.

Key Strengths Of Piramal Enterprises 

Strong Financial Position

Piramal Enterprises has a solid financial foundation, with a consolidated net worth of INR 26,930 crore as of September 2024. The company maintains a debt-to-equity ratio of 2.1x, which means it has a balanced mix of debt and its own funds. Additionally, its capital adequacy ratio of 23.3% ensures it has enough capital to cover risks and continue growing sustainably.

Experienced Leadership And Strong Parent Group

PEL is part of the well-established Piramal Group, which has businesses in financial services, pharmaceuticals, and real estate. The company is led by Ajay Piramal (Chairman) and a team of experienced professionals, including Jairam Sridharan (Managing Director – Retail Finance) and Yesh Nadkarni (Head of Wholesale Lending). Their deep knowledge and expertise help PEL grow and manage risks effectively.

Focus on Retail Lending

PEL is shifting its focus towards retail lending, which now makes up 73% of its total assets under management (AUM) in FY25 (compared to 49% in FY23). This shift is mainly due to an increase in affordable housing loans, SME credit, and unsecured loans.

1. Housing loans account for 44% of total AUM.
2. Secured MSME loans make up 10%.
3. Unsecured loans (such as personal loans) contribute 13%.

This growth in retail lending helps the company reduce risks and expand its customer base.

Strategic Growth Through Acquisitions

The acquisition of Dewan Housing Finance Limited (DHFL) significantly strengthened PEL’s retail loan portfolio. It also expanded its branch network, which now includes 487 conventional branches and 194 microfinance branches across India. This acquisition has helped PEL reach more customers, particularly in smaller cities and rural areas.

Expansion And Innovation in Lending

PEL is continuously expanding its reach by opening new branches and forming partnerships with fintech and consumer tech companies. These collaborations help PEL improve its retail lending business by making loans more accessible to customers. The company is also seeing strong growth in loan disbursements, which is helping it maintain a healthy balance of assets and strengthen its position in the market.

This transformation makes PEL a major player in the retail lending space, with a strong focus on innovation and financial inclusion.

Financial Snapshot Piramal Enterprises

To arrange the capital, Piramal Enterprises also offers corporate bonds. These opportunities from the company are secured and are rated by credit rating agencies. On Grip Invest, investors invested in CREDIT ‘AA’ rated bonds of the company that offered fixed returns of up to 9.1%. To invest in similar, rated, regulated and secured fixed-income opportunities sign-up for Grip Invest today and start earning fixed returns:

References:

1. Piramal Enterprises Limited, accessed from: https://www.piramal.com/about-us/board-of-directors/piramal-enterprises-ltd/

Want to stay at the top of your finances? 

Join the community of 4 lakh+ investors and learn more about Grip Invest, the latest financial knick-knacks, and shenanigans in the world of investing.

Happy Investing!

Disclaimer - Investments in debt securities/municipal debt securities/securitised debt instruments are subject to risks including delay and/ or default in payment. Read all the offer related documents carefully. The investor is requested to take into consideration all the risk factors before the commencement of trading.
This communication is prepared by Grip Broking Private Limited (bearing SEBI Registration No. INZ000312836 and NSE ID 90319) and/or its affiliate/ group company(ies) (together referred to as “Grip”) and the contents of this disclaimer are applicable to this document and any and all written or oral communication(s) made by Grip or its directors, employees, associates, representatives and agents. This communication does not constitute advice relating to investing or otherwise dealing in securities and is not an offer or solicitation for the purchase or sale of any securities. Grip does not guarantee or assure any return on investments and accepts no liability for consequences of any actions taken based on the information provided. For more details, please visit www.gripinvest.in

Registered Address - 106, II F, New Asiatic Building, H Block, Connaught Place, New Delhi 110001