Piramal Enterprises : announces its plan to Enter Housing Finance

Piramal Enterprises Limited announces its plan to Enter Housing Finance

• Piramal Finance Limited ("PFL‟), a 100% subsidiary, to apply to National Housing Bank for incorporating a housing finance company ("HFC‟) as its subsidiary

• Leverage existing strength in wholesale funding to diversify into retail finance

Thursday, 5th January 2017, Mumbai: At a Board Meeting held earlier today, Piramal Enterprises Limited announced plans to enter the retail housing finance market. The Board of Directors has given its approval for Piramal Finance Ltd to make an application to the National Housing Bank (NHB) for incorporating a Housing Finance Company (HFC) as its subsidiary.

Piramal Finance Limited ("PFL") already has a long standing presence in wholesale finance, catering to the entire spectrum of financing needs across real estate (both residential and commercial) as well as non-real estate (operating infrastructure and other sectors) sectors with a current overall loan book extending to INR 19,170cr. In addition, the Group also acts in a fiduciary capacity managing external funds with an AUM of INR 7,315cr, including alliances with leading global investors.

The existing suite of products for real estate underlines PFL‟s ability to cater to the entire capital stack, i.e. from early stage equity until later stage debt / construction finance for residential and both mezzanine / structured debt as well as lease rental discounting for commercial. Individual housing loans, therefore, are both a diversification strategy as well as a natural extension of its business, completing its suite of products with an offering for the retail customer segment.

Ajay Piramal, Chairman, Piramal Enterprises Limited said, "Having successfully scaled up our presence in wholesale finance through Piramal Finance Limited, we believe that we have established a blueprint for growth within the real estate asset class. We therefore, feel that the timing is opportune for us to make a foray into retail housing finance. We would naturally stand to benefit from our existing relationships with our development partners and our ability to extend the tenure of our relationship from financing construction of the project to the funding the individual home buyer." Khushru Jijina, Managing Director, Piramal Finance Limited said, "Having consolidated our presence in the wholesale finance segment, we are excited to extend our services into retail home finance. The scale of our relationships and existing investments across 300+ projects with 100+ development partners will enable us to hit the ground running."

Retail housing as an asset class has always been representative of the significant economic potential demonstrated by India‟s growing middle class with the individual home loan segment tracking healthy growth. Given a fundamental underlying demand for urban housing

coupled with increasing affordability amongst a growing working class, the long term outlook for this business is attractive.

About Piramal Enterprises Limited

Piramal Enterprises Limited (PEL) is one of India's large diversified companies, with a presence in Healthcare, Healthcare Information Management and Financial Services. PEL's consolidated revenues were around US$1 billion in FY2016, with 61% of revenues from outside India.

In Healthcare, PEL is one of the leading players globally in CRAMS (custom research and manufacturing services) as well as in the critical care segment of inhalation and injectable anesthetics. It also has a strong presence in the OTC segment in India.

PEL's Healthcare Information Management business, Decision Resources Group, is amongst the top 20 US market research organizations which provide information services to the healthcare industry.

In Financial Services, PEL, through its Piramal Fund Management Division, provides comprehensive financing solutions to real estate companies. The Division's Structured Finance Group (SFG) also provides senior and mezzanine growth capital to various businesses across varied sectors that are integral part of India's growth story. The total funds under management under these businesses are US$3.8 billion. The Company also has strategic alliances with top global funds such as CPPIB Credit Investment Inc., APG Asset Management and Bain Capital Credit. PEL also has long term equity investments worth over US$700 million in Shriram Group, a leading financial conglomerate in India.

PEL is listed on the BSE Limited and the National Stock Exchange of India Limited in India.

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