| Model Group |
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The financial world has over the past few years witnessed radical and far reaching
changes. The onset of information technology, scaling down of rigid government policies,
have truly
reshaped timeworn
financial practices. This has led to growing complexities, increasing
competition and an ever-accelerating
pace of change. And of course, burgeoning of opportunities.
It is against this backdrop that MODEL Financial Corporation Limited was incorporated in
the year 1987, with a singular objective : To provide integrated financial services of the
highest order. Promoted by Mr. A Krishna Murty, a doyen in the financial services industry in Andhra
Pradesh, MODEL Fin•Corp is now one of the leading NBFCs in India concentrating on
fund based and non-fund based activities.
The company which was operating with owned funds till 1994, went public in January 1995 with
an initial public
offering of Rs 27.06 million and the scrip was listed with Bombay, Madras and Hyderabad
Stock Exchanges.
The operations of the company are expected to take a quantum jump in the fiscal year 1997
with the expected disbursals of funds being Rs. 200 million. MODEL Fin•Corp plans to
leapfrog with an annual increase of over 100% to achieve disbursals worth Rs.1000
million by the Year 2000, considering the competitive strength of the company and the growing
market for the company’s services. While the Corporate office is based in Hyderabad, the company has branches at all
important centers in South India viz., Bangalore, Visakhapatnam, Vijayawada,
Kakinada, Guntur, Guntakal, Ananthapur and Gajuwaka.
The company is managed professionally at the Board level as well as the operating level.
The human resources of MODEL Fin•Corp consists of 100 loyal staff with varied and
versatile experience to steer the company forward in attaining its corporate goals.
The clearance of client’s proposals in a rapid succession complete with proper evaluation ensuring
a steady recovery rate places the company on a high pedestal. MODEL Fin•Corp clearly
scores over its competitors in terms of fast and efficient services, tailormade to
each client.
The company has in its client portfolio large industrial undertakings, small and medium
scale enterprises, partnership firms and individuals and advances portfolio covers
advances for manufacturing, automobiles, construction and other services sectors. Most of the
fund deployment is in small and medium scale companies for expansion
and modernization plans. MODEL Fin•Corp concentrates on financing of office
automation, industrial, medical and construction equipment and more than 80% of its
portfolio consists of equipment financing while automobile financing constitutes 10% of
its portfolio.
The Company incorporated as a limited company was inaugurated on 19-11-1995. It was
established to provide a new financial instrument for corporates. Hitherto chits were
designed only for individuals but Model Chit·Corp has designed and
introduced this time tested simple and flexible instrument for corporates.
Company Strengths :
The main strength of the company is the deep understanding of the market and vast
experience of its promoter and Chairman Sri A Krishna Murty, whose decades of experience
of servicing the needs of thousands of customers have left an indelible
impression on the products and services the company offers. The result is the company's
customers orientation, which ensures a good deal to the Subscribers. Since establishment in November, 1995 the company has recorded a business turnover of
Rs.
186 Crores of which Rs. 112.50 Crores represents corporate chits which forms 60% of the
turnover. The object of establishing the company to give a new instrument to corporates
has indeed been fully justified.
Group Companies :
The other companies of note in the group include Model Financial Corporation and Model
Chit Corporation Karnataka Limited, a subsidiary. Besides, the Group has also interests in
the Construction industry.
Further Plans :
The company has plans to further increase its turnover in corporate chits and also spread
the message of chits to new clients, like software engineers, executives and employees who
are not aware of the benefits of the instrument. The company hopes
to innovate and design products that will be contemporary and serve a wide range of
customers.
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