Margadarsi Chit Fund Private Ltd, which is a part of the Ramoji group, has achieved ₹ 10,204 crore turnover in this financial year and aims to cross ₹ 11,000 crore by next year.
Margadarsi Managing Director Sailaja Kiron said that the company plans to cross the ₹20,000 crore figure by 2025. This is an amazing journey considering that its turnover was just ₹ 100 crore in the first 28 years of its existence. In the last 27 years its turnover rose from ₹ 100 crore to ₹ 10,000 crore. Over 70% of the business is from Andhra Pradesh and Telangana.
She said the company’s recoveries are almost 99% in a high-risk sector like chit funds and this is due to the strong recovery measures taken to win the confidence of the subscribers. As of now the company offers chits ranging from ₹50,000 to ₹ 80 lakh and soon it plans to offer ₹ 1 crore chits too. More than 50 lakh subscribers have benefited over the years, she added. She said Margadarsi is also contemplating to launch non-banking finance services given its strong financial image in the sector.
Set up in 1962 by Ramoji Rao, who runs Eenadu group of publications, Margadarsi now has 105 branches in Telangana, Andhra Pradesh, Tamil Nadu and Karnataka. It plans to open about five new branches this year.
GST impact
Ms. Kiron said that the chit fund sector was badly hit by GST and she felt that GST should not be collected on the interest amount like in banks. She was thankful that the government has reduced GST from 18% to 12% but they would continue to pressurise it to bring the rate further down.