New Delhi: Financial services provider GE Capital on Sunday said it will expand its leasing business in both new and existing asset areas in India, eyeing exponential growth in volumes in 2012.
The company said it is entering into new leasing asset areas and expanding its existing presence in the automotive and equipment leasing for corporate organizations segment.
“Commercial leases contribute a significant portion of GE Capital’s commercial book size globally. We are combining our global leasing expertise with our knowledge of the Indian market to bring relevant offerings to mid-sized and large local and multinational companies,” GE Capital India President and CEO Anish Shah said in a statement.
With the rising cost of funds, leasing provides an alternative means by which companies can fund their capital expenditure without the need to leverage their balance sheets, the statement said.
“We have an enhanced lease offering for our automotive customers. We also now offer leasing solutions for a large variety of equipment, including manufacturing and material handling equipment, industrial equipment, technology and office equipment,” GE Capital Senior Vice-President for Leasing, Sameer Maheshwary, said.
GE Capital India recently acquired new leasing customers, including a bank, telecom equipment providers and ATM provider.
“We are partnering GE Capital in India to provide our employees with easy leasing options for cars for personal use. The GE Capital team brings their global understanding about the car leasing space to us and our employees,” Alcatel-Lucent general manager for Human Resources in India Neena Dhinda said.
GE Capital said with the projected growth of middle-tier corporates and large multinationals in India, industry experts predict double-digit growth of the leasing market over the next three years.
Leasing provides a convenient and flexible finance option to companies. When working with a strong leasing partner, leasing can reduce the administrative burden with a flexible end-of-term option of redeploying the asset, it added.
The statement said that with the renewed focus on leasing, GE Capital will work closely with manufacturers and end-customers in India to provide them with new structured financial solutions in the areas of operating leases, finance leases and hire purchases.