Kolkata-based Magma Shrachi Finance Ltd is seeking bigger share of the country’s construction equipment (CE) and vehicle financing market.

In the last couple of months, the non-banking finance company has inked tie-ups with General Motors, Hyundai and Mahindra & Mahindra. Besides, it also has a tie-up with Maruti Suzuki, and finances around 24,000 of their cars per annum.

Sanjay Chamria, vice-chairman and managing director, Magma Shrachi Finance, said, “The company’s growth in CV has been higher at 20% compared to an industry growth of 2.5%. We do not expect big growth in this sector. We will be driving the car finance market significantly this year. In 2007-08, our car finance business grew by 60% against 12% for the industry.”

The company expects to increase its market share to more than 25% in the CE sector, in which it already owns a share of about 9 percent.

“We are expecting considerable growth in tractor financing this year, a relatively new space for us. We entered into tractor financing during 2007-08 along with a joint venture with International Tractors in order to diversify our product offerings into agricultural finance”, Mr. Chamria added.

Magma, which in the year ended 31 March lent Rs 3,512 crore, has a total asset base of Rs 7,412 crore. It plans to add another 50 branches, mainly in western India.

Presently, Orissa, Chhattisgarh, Madhya Pradesh, Punjab, Haryana and Andhra Pradesh, each contribute more than 10% of its business, whereas Rajasthan-Gujarat contribute 9.1% jointly.

Magma Shrachi Finance has posted a 61 percent rise in net profit at Rs 50.54 crore during the year ended on March 31, 2008, as compared to Rs 31.40 crore during the same period of the preceding year.

The company’s total asset base grew 29% to Rs 7,412.3 crore against Rs 5,742.5 crore during the previous year. The total disbursement of the company grew by 38% from Rs 2,544.1 crore to Rs 3,512.8 crore.

Moreover, the company is bullish on the car financing sector and expects a significant increase in the market share from the current 3%.