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5		-Company Overview
	5	+= Company Overview =
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	7	+Cholamandalam Investment and Finance Company Limited (Chola) (NSE: CHOLAFIN), incorporated in 1978 as the financial services arm of the Murugappa Group. Chola commenced business as an equipment financing company and has today emerged as a comprehensive financial services provider offering vehicle finance, home loans, home equity loans, SME loans, investment advisory services, stock broking and a variety of other financial services to customers.{{footnote}}https://www.cholamandalam.com/overview.aspx{{/footnote}}
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8		-Cholamandalam Investment and Finance Company Limited (Chola) (NSE: CHOLAFIN), incorporated in 1978 as the financial services arm of the Murugappa Group. Chola commenced business as an equipment financing company and has today emerged as a comprehensive financial services provider offering vehicle finance, home loans, home equity loans, SME loans, investment advisory services, stock broking and a variety of other financial services to customers.
9		-
10		-[[https:~~/~~/www.cholamandalam.com/overview.aspx>>url:https://www.cholamandalam.com/overview.aspx]]
11		-
12	12	Chola operates from 1098 branches across India with assets under management above INR 63,501 Crores. The subsidiaries of Chola are Cholamandalam Securities Limited (CSEC) and Cholamandalam Home Finance Limited (CHFL).
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14	14	The vision of Chola is to enable customers enter a better life. Chola has a growing clientele of over 8 lakh happy customers across the nation. Ever since its inception and all through its growth, the company has kept a clear sight of its values. The basic tenet of these values is a strict adherence to ethics and a responsibility to all those who come within its corporate ambit - customers, shareholders, employees and society.
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16	16
17		-Products and Services,
	14	+== Products and Services ==
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	16	+**Vehicle Finance Loans** - Loans to customers against purchase of new/used vehicles, tractors, construction equipments and loan to automobile dealers.
19	19
20		- Vehicle Finance Loans - Loans to customers against purchase of new/used vehicles, tractors, construction equipments and loan to automobile dealers.
	18	+**Home Equity** - Loans to customer against immovable property
21	21
	20	+**Others** - Loans given for acquisition of residential property, loan against shares, and other unsecured loans & security broking and insurance agency business.
22	22
23		-Home Equity - Loans to customer against immovable property
24	24
	23	+**Vehicle Finance**
25	25
26		-Others - Loans given for acquisition of residential property, loan against shares, and other unsecured loans & security broking and insurance agency business.
	25	+* Two Wheeler Loans
	26	+* Commercial vehicle loan
	27	+* Tractor Loans
	28	+* Car & MUV Loans
	29	+* Construction Equipment Loans
27	27
28	28
29		-Vehicle Finance
	32	+**Loans against property**
30	30
	34	+* Home Loans
	35	+* SME Loans
	36	+* Rural & Agri Loans
31	31
32		-Two Wheeler Loans
33	33
34		-Commercial vehicle loan
	39	+**Wealth Management**
35	35
36		-Tractor Loans
	41	+* Mutual Funds
	42	+* Stock & Derivatives
	43	+* Internet broking
	44	+* Demat Services
	45	+* Exchange Traded Funds
	46	+* Bonds
37	37
38		-Car & MUV Loans
39	39
40		-Construction Equipment Loans
	49	+= Industry Overview =
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	51	+**Auto Industry**
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	53	+The domestic commercial vehicle industry was faced with the impact of multiple headwinds in FY 20 like reduced freight demand due to the revised axle load norms, lesser market load availability due to lower GDP growth, dampened BS VI pre buying in Q4 and the COVID-19 impact which led to full lockdown from 24 March, 2020. The commercial vehicle industry closed FY 20 with a 29% degrowth which is the steepest degrowth in more than 15 years with medium and heavy commercial vehicle (MHCV’s) contributing to 47% degrowth followed by light commercial vehicle (LCV’s) at 21% degrowth and buses with 7% degrowth. Domestic commercial vehicle sales is expected to fall by 20% - 25% in FY 21 considering the macroeconomic challenges posed by the pandemic outbreak. The extent of recovery in construction, manufacturing, industrial output and consumption demand are key factors to watch out for a quicker recovery in FY 21. MHCV (Truck) sales are expected to close FY 21 with further decline of 12-14%. Despite the expectation of uptick in rural demand due to good rabi output, the outbreak of COVID-19 has led to restricted movement of goods and lesser demand for consumption goods. Due to these factors, the LCV (Truck) segment is expected to contract further by 7-9% during FY 21. The passenger carrier segment (buses) would also continue to face challenges due to curbs in operation of schools, colleges and offices due to the pandemic, leading to a 8-10% contraction during FY 21. Any prolonged disruptions and delay in recovery of macro-economic factors will further dampen the recovery in FY 21. However, used commercial vehicle sales is likely to be less impacted in FY 21 considering lower market prices, BS VI transitioning and extended time gap in regularization of the new vehicle supply chain. {{footnote}}https://www.cholamandalam.com/files/MEDIA/Annual-Reports-2019-2020.pdf{{/footnote}}
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44		-Loans against property
45	45
46		-Home Loans
47		-
48		-SME Loans
49		-
50		-Rural & Agri Loans
51		-
52		-Wealth Management-
53		-
54		-
55		-Mutual Funds
56		-
57		-Stock & Derivatives
58		-
59		-Internet broking
60		-
61		-Demat Services
62		-
63		-Exchange Traded Funds
64		-
65		-Bonds
66		-
67		-
68		-
69		-
70		-Industry Overview
71		-
72		-Auto Industry
73		-
74		-The domestic commercial vehicle industry was faced with the impact of multiple headwinds in FY 20 like reduced freight demand due to the revised axle load norms, lesser market load availability due to lower GDP growth, dampened BS VI pre buying in Q4 and the COVID-19 impact which led to full lockdown from 24 March, 2020. The commercial vehicle industry closed FY 20 with a 29% degrowth which is the steepest degrowth in more than 15 years with medium and heavy commercial vehicle (MHCV’s) contributing to 47% degrowth followed by light commercial vehicle (LCV’s) at 21% degrowth and buses with 7% degrowth. Domestic commercial vehicle sales is expected to fall by 20% - 25% in FY 21 considering the macroeconomic challenges posed by the pandemic outbreak. The extent of recovery in construction, manufacturing, industrial output and consumption demand are key factors to watch out for a quicker recovery in FY 21. MHCV (Truck) sales are expected to close FY 21 with further decline of 12-14%. Despite the expectation of uptick in rural demand due to good rabi output, the outbreak of COVID-19 has led to restricted movement of goods and lesser demand for consumption goods. Due to these factors, the LCV (Truck) segment is expected to contract further by 7-9% during FY 21. The passenger carrier segment (buses) would also continue to face challenges due to curbs in operation of schools, colleges and offices due to the pandemic, leading to a 8-10% contraction during FY 21. Any prolonged disruptions and delay in recovery of macro-economic factors will further dampen the recovery in FY 21. However, used commercial vehicle sales is likely to be less impacted in FY 21 considering lower market prices, BS VI transitioning and extended time gap in regularization of the new vehicle supply chain.
75		-
76		-[[https:~~/~~/www.cholamandalam.com/files/MEDIA/Annual-Reports-2019-2020.pdf>>url:https://www.cholamandalam.com/files/MEDIA/Annual-Reports-2019-2020.pdf]]
77		-
78	78	Tractor industry had a de-growth of 10% in FY 20 due to weak farm sentiments in the first half of the year along with erratic rainfall and onslaught of COVID-19 during March, 2020. A faster recovery of the rural sector which has been mostly insulated from the impact of COVID-19 together with a good rabi harvest, normal monsoon, government support through farm subsidies and direct income support to farmers will aid the tractor demand in H2 FY 21. Clearing supply chain bottlenecks and availability of labor for Original Equipment Manufacturers (OEMs) is key to ensure supply post lockdown. Tractor sales is expected to degrow in FY 21 by 5-10% based on current trends. Government’s thrust towards doubling farm income is expected to drive long term growth in this segment.
79	79
80	80	Two-wheeler industry had a degrowth of 18% in FY 20 due to weak consumer sentiment, subdued rural demand and increase in cost of ownership. The industry is staring at another year of degrowth due to the impact of COVID-19 which has impacted income of individuals leading to lesser discretionary spends. However, expectation of better Kharif prospects and normal rainfall shall help the demand from rural areas which is expected to be higher when compared to urban areas.
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160	160	References
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