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A prime mover

Sumit Mukherjee, Chief Product & Programme Officer at Magma Fincorp, has over 23 years of experience in the retail finance business. He has been with Magma for seven years and has headed various functions in Credit and Sales.

An industry veteran

Sumit Mukherjee has a total experience of 23 years in the retail finance business. Currently, he is the Chief Product & Programme Officer at Magma Fincorp. He has been with Magma for seven years and has headed various functions in Credit and Sales.

Magma is a well-diversified business with six business lines

No equipment group is able to drive growth which is primarily due to the fact that the overall infrastructure and mining segments have been impacted by various factors, says Sumit Mukherjee, National Sales Head, Magma Fincorp. Excerpts from the interview.

Navigating through turbulent times

Overall slowdown in demand for new equipment, absence of new channels for the deployment of equipment compared to the overall availability, plummeting value of currency, lack of clarity on private coal blocks, highly depressed rental rates - all seems to have had its negative impact on the equipment finance segment.

Equipment Financing: Widening the Net

CE financing has definitely picked up and has registered a growth of 20 per cent over last year. Though the industry has not touched the peak levels of 2007-08, it expects to end the 4th quarter on a high and continue the growth story in 2011-12.

We plan to have a growth of 50% in our overall disbursements

Magma straddles the entire customer segment from the first-time buyer to the strategic segment. Our ticket sizes range from Rs 16 lakh for a backhoe loader to Rs 20 crore to a strategic customer, says Sumit Mukherjee, Vice President, Magma Fincorp.

A complex growth pattern

Till date, leasing has not been not more than one per cent of the total equipment finance market. However, with the clarity coming about taxation related to leasing and a direct tax code coming up, there is a huge opportunity of revival of this product in the coming years.

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