Tata Capital planning to create assets worth Rs.2,500 crore over next five years through its business partnership with Japan's Century Tokyo Leasing Corporation, reports said.
In this connection, the company, through its wholly-owned subsidiary Tata Capital Financial Services, has entered into a business partnership with the Japanese counterpart. The venture will offer leasing solutions through a separate 'Leasing Division' in Tata Capital Leasing Solutions (TCFSL).
Both the parties intend to form a joint venture once asset creation of Rs.2,500 crore is reached. However, equity structure for the JV is yet to be decided.
Under the agreement, it is proposed to launch a 'Japan-Desk', which will be represented by senior officials of TC-Lease who will be based in India as part of the Leasing Division. The primary responsibility of the Japan Desk will be to source business from Japanese companies based in India.
Presently, the equipment leasing market in India is estimated at Rs.20,000 crore and is expected to grow at an annual rate of 25 percent to 30 percent over the next few years.
The business partnership intends to form a joint venture once asset creation of Rs.2,500 crore is reached. However, no decision has been taken about the equity structure in the proposed joint venture.
by RTT Staff Writer
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