Shriram Finance Unveils ‘Shriram Green Finance’ to Drive Sustainable Growth
Shriram Finance Limited, one of India’s leading diversified financial services companies, has taken a bold stride toward a sustainable future by launching a dedicated green financing vertical—‘Shriram Green Finance.’ This strategic initiative consolidates the company’s ongoing sustainability efforts into a unified platform, targeting an Asset Under Management (AUM) of ₹5,000 crore over the next three to four years.
The launch marks a significant milestone in India’s evolving green finance ecosystem, aimed at supporting cleaner mobility, renewable energy, and energy-efficient technologies that collectively drive the country toward a low-carbon economy.
Pioneering a Unified Green Finance Ecosystem
The newly launched Shriram Green Finance vertical seeks to streamline and strengthen the company’s approach to sustainable lending. It will cater to a diverse range of sectors—electric vehicles (EVs), battery charging and swapping infrastructure, renewable energy projects, and energy-efficient equipment—offering tailor-made financing solutions that encourage innovation and adoption of green technologies.
The initiative reflects Shriram Finance’s commitment to aligning business growth with environmental responsibility, reinforcing the company’s role as a key enabler in India’s green transition story.
Speaking about the new vertical, Umesh Revankar, Executive Vice Chairman of Shriram Finance, said:
“The launch of Shriram Green Finance marks a step toward fostering sustainable growth and empowering stakeholders with financial solutions that support a greener economy.”
His statement highlights how financial inclusion and sustainability can work hand-in-hand to create long-term value for communities and the planet.
Supporting a Sustainable India
The establishment of Shriram Green Finance comes at a pivotal time for India’s green economy. The country is witnessing a surge in electric vehicle adoption, with government incentives, improved battery technology, and consumer awareness driving rapid market expansion. By creating a dedicated financing arm, Shriram Finance aims to make green mobility and clean energy investments more accessible to both individuals and small businesses.
S. Chakravarti, Managing Director and CEO of Shriram Finance, emphasized this alignment with national goals, noting:
“Our Green Finance vertical aligns with Shriram Finance’s vision of aiding stakeholders in transitioning to a low-carbon economy.”
This focus not only mirrors India’s net-zero by 2070 target but also positions Shriram Finance as a catalyst in mobilizing private capital toward climate-positive sectors.
Expanding Access Across Semi-Urban and Rural India
With a strong presence in semi-urban and rural markets, Shriram Finance has the unique advantage of extending green finance opportunities beyond urban centers. Many small businesses and individual entrepreneurs in these regions are now exploring investments in electric two-wheelers, solar energy systems, and energy-efficient machinery—but face challenges in accessing affordable finance.
By bridging this gap, Shriram Green Finance can drive financial inclusion and environmental equity, ensuring that sustainable technologies are not limited to metropolitan users but become part of everyday life across India.
The company also plans to raise domestic and international green funds, ensuring a robust flow of capital dedicated exclusively to sustainable infrastructure, clean energy, and carbon-reducing projects.
Focus on Electric Mobility and Clean Energy
Initially, Shriram Green Finance will focus on electric mobility, a sector that has seen exponential growth over the past five years. India’s EV market is projected to reach a valuation of $113 billion by 2029, driven by ambitious government targets and corporate commitments.
To accelerate this transition, Shriram Finance is collaborating with Original Equipment Manufacturers (OEMs) of electric vehicles to establish long-term financing partnerships. These collaborations aim to provide affordable and flexible credit options for EV buyers and fleet operators—especially in Karnataka, Kerala, the National Capital Region (NCR), and Maharashtra.
In parallel, the vertical will support projects in renewable energy generation, such as solar and wind installations, and encourage adoption of energy-efficient machinery in small and medium enterprises (SMEs). Such integrated efforts will not only reduce carbon footprints but also enhance energy resilience and cost savings for end-users.
India’s Green Finance Moment
Globally, green finance has emerged as one of the most powerful tools for combating climate change. In India, it is evolving into a multi-billion-dollar opportunity—with increased participation from banks, NBFCs, and private investors.
By consolidating its initiatives under one brand, Shriram Green Finance is taking a leadership position in shaping this emerging financial landscape. The vertical’s ambitious ₹5,000 crore target underscores the company’s confidence in the long-term potential of sustainable investments.
Moreover, as environmental, social, and governance (ESG) considerations become central to investor decisions, Shriram Finance’s proactive stance enhances its ESG credentials—attracting not only borrowers but also environmentally conscious investors seeking transparent, measurable impact.
Empowering the Energy-Efficient Future
While India’s energy-efficient machinery segment is still developing, its potential is immense. The government’s push for industrial decarbonization through initiatives like Perform, Achieve and Trade (PAT) and National Energy Efficiency Mission (NEEM) creates fertile ground for growth.
Shriram Green Finance aims to empower small-scale industries and manufacturers to adopt energy-efficient technologies, improving productivity while reducing emissions. By providing easy financing options for upgrading to eco-friendly equipment, the company contributes to resource efficiency, competitiveness, and climate resilience within India’s manufacturing ecosystem.
Aligning with National and Global Climate Goals
The launch of Shriram Green Finance reflects a growing realization among Indian corporations that sustainability is not just ethical—it’s economically strategic. As the world transitions toward clean energy, companies that integrate climate-conscious business models are better positioned for global competitiveness.
By fostering green lending and innovation, Shriram Finance contributes directly to India’s commitments under the Paris Agreement and Sustainable Development Goals (SDGs)—particularly SDG 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 13 (Climate Action).
Conclusion: Finance as a Force for Good
With Shriram Green Finance, Shriram Finance Limited has not only launched a new vertical—it has launched a vision for responsible growth. The initiative symbolizes how finance can be a force for good, bridging the gap between economic development and environmental stewardship.
As the world looks for scalable models of sustainable transition, Shriram Green Finance offers a blueprint—rooted in inclusion, innovation, and impact. By enabling access to green credit and encouraging low-carbon investments, the company is helping build a more resilient, prosperous, and sustainable India.
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