Sri Vijayaram Hire Purchase and Leasing Finance Private Limited was incorporated on 27th September, 1994 having the Registered Office at 14, Thayumanavar street, Attur, Salem District, Tamil Nadu. The Company was started with an authorised capital of Rs. 10 Lakhs and as on 31.03.1997 it has grown into a company with Authorised, Issued, Subscribed and Paid-up Capital of Rs. 50.00 Lakhs. The Net Owned Funds of the company as on 31.03.1997 were Rs. 51.58 Lakhs. The company is engaged only in Hire Purchase business, especially for lorries, trucks, buses, cars, autos, and two wheelers. The net stock on Hire as on 31.03.1997 was Rs. 56.44 Lakhs. The company does not have any activity in Non-Fund based operations like guarantees, underwriting, bill discounting, etc. and the company does not intend doing such business in the next 3 years.
Thrust: The company, over the next 3 years, is aiming at reaching Authorised and Paid-up Capital of Rs. 3.00 crores. The company aims at having share capital of Rs. 1 crore as on 31.03.98, 2 crores as on 31.03.1999 and Rs. 3 crores as on 31.03.2000. Similarly the company aims at having a stock on hire(Net) of Rs. 12.00 crores as on 31.03.2000. The company has plan to raise deposits of about 10 crores in the next 3 years and the company does not have any intention to advertise and invite general public to deposit with the company. The entire deposits are aimed through mobilisation from people closely known to the management of the company for the past few decades from the locality in which the company is situated. The directors are traditionally in finance business for the past 35 years.
Market Segment: (a) Attur is a fine paddy growing centre. It boasts of producing super fine varieties of rice. In and around Attur plenty of rice mills, both for hulling and boiling paddy, are available.
(b) 70% of the total production in India of starch and sago products out of Tapioca are produced from 300 mills in and around Attur. Also inflow of Tapioca and outflow of finished products are quite heavy.
(c) Cotton of good quality is grown in plenty in Attur and hence we find lot of ginning factories and spinning mills in and around Attur. Fine cotton is regularly transported to Calcutta.
(d) Vegetables and fruits are grown in large scale in and around Attur. Road transportation of passangers by buses, light commercial vehicles, cars and two wheelers as well as goods movement by trucks and trailers, light commercial vehicles and three wheelers has been growing up year after year in Attur. Presently Attur boasts of having about 40 buses registered at Attur, 350 trucks, 125 light commercial vehicles, 400 cars, 100 three wheelers. Nearly 500 buses ply through Attur daily carrying passangers. Lot of trucks and trailers carry merchandise like leco and by-products from Neyveli, cement from Sankagiri, stainless steels coils from Salem Steel Plant and pass through Attur daily. There is a growth rate of 25% to 35% per annum in the demand for new buses, trucks, trailers, light commercial vehicles, cars, three wheelers and two wheelers. There are 300 owners of lorries and trucks at Attur. Besides financing for vehicles, the company proposes to go in for financing on H.P., mechineries for Rice Mills, Sago factories, Ginning factories, Power Looms, Diesel Generator Sets, Portable Generator Sets, thereby making its impact in the Hire Purchase operations of the industrial sector also. With the increased share capital and deposit mobilisation as indicated earlier in this write-up, the company is poised for a very healthy investment in Stock on Hire of about Rs. 12.00 crores by 31.03.2000. It is quite pertinent to highlight here that the company does not have any competitor upto 55 kms in West, 90 kms in South, 130 kms in North and 150 kms in East. The city is a Taluk centre with Sub-judge court, Munsif court, Deputy Superintendent of Police, excellent weekly market and good municipality. Therefore general administration of Hire Purchase business is very healthy and trouble free.