Manappuram Finance Ltd has laid out six strategies priorities as part of its ongoing business transformation, expressing confidence about growth prospects and operational improvements.
During an analysts call, the company CEO Deepak Reddy outlined six priorities – accelerating gold, consolidating non-gold business, organisational effectiveness, infusing top talent, getting ready for medium to long term and product strategy.
Momentum in the gold loan business has rebounded strongly, with assets under management (AUM) showing healthy growth. Multiple price-sensitivity tests are underway to finalise the optimal scheme mix for the next financial year.
A key focus area remains strengthening the gold loan franchise. The company is set to roll out a completely redesigned branch format, with vendor negotiations in the final stages. The revamp aims to enhance customer experience while tightening operational controls.
Parallelly, Manappuram is advancing its digital initiatives and expects most customer acquisition processes to become paperless over the next one to two quarters. Implementation of a best-in-class AI-based security system at branches has also begun. Co-lending, another group priority, has gone live this week and is expected to improve returns for subsidiaries.
For non-gold businesses, the company is pursuing a “consolidate to grow” strategy. Operations have been scaled down across select products and geographies, with car loans, farm equipment loans, MSME and vehicle loans either paused or restricted. Underwriting norms have been tightened, collection infrastructure strengthened and loan origination systems upgraded. Growth in these segments is expected to resume from Q1 FY27.
Organisational restructuring is showing early benefits, with improved ownership and operating discipline. A comprehensive overhaul of HR practices and process simplification initiatives is also underway. Senior leadership appointments, including Group CFO, Compliance Officer and General Counsel, have been completed, with more hires planned across technology, risk, audit and business roles.
On the technology front, Manappuram has initiated a long-term engagement to migrate to a new digital core over the next two to three years, alongside interim plug-in solutions. Subsidiary Asirvad is showing signs of recovery, with improving collections, strong new-book performance and credit metrics stabilising. The housing finance business remains a strategic priority, with a new leadership team expected by Q1 FY27.
The company said these priorities will form the foundation for sustained growth and plans to share a detailed strategic roadmap and firm guidance from the next financial year.