CMS Info Systems to enter gold logistics, loan collection services
CMS Info Systems plans to expand into gold logistics and retail loan repayments collection, having already piloted these ventures. With over Rs 2,000 crore revenue in fiscal 2023, CMS aims for incremental growth. The company sees potential in India's formalizing bullion sector and the evolving lending ecosystem. It has collaborated with major clients and institutions for its pilot programs. Confident in delivering revenue targets, CMS anticipates upper-half performance in its revenue target range of Rs 2,500-2,700 crore for fiscal 2025.
Cash management services company is planning to expand its business by diversifying into and collection of .The company that reported more than Rs 2,000 crore of revenue in fiscal 2023 has already piloted and incubated two business lines — and — and is soon expected to launch the businesses commercially. CMS, which posted more than 20% expansion in revenue over the last three years, is eyeing incremental growth from the new businesses.
“Bullion is a large and growing sector in India and is rapidly formalising due to government reforms such as GST and BIS Hallmark," said Rajiv Kaul, executive vice chairman and chief executive of CMS Info Systems. "Our network, risk management framework and operational efficiency offer an integrated solution to the goods logistics segment".
For the pilot in bullion logistics, the company has worked with 35-40 clients, including , Muthoot FinCorp, Kalyan Jewelers and MMTC Pamp. It also has a tie-up with Malca Amit and AVA Global to facilitate global storage and distribution of bullion and is registered with MCX for bullion warehouse services.
As far as debt collection is concerned, seems to be wanting to capitalise on the retail credit boom in the country. "As India continues to experience high credit growth, there is a shift in consumption behaviour which is evolving the lending ecosystem," Kaul said. "Due to the fragmented approach adopted, there is an opportunity for an organised player like us to offer an integrated tech-to-field collection solution and change the industry landscape like we have transformed the cash management industry in India."
It has tied up with 14 large banks, non-bank finance companies and small finance banks for the pilot in this business, covering credit cards, two-wheeler finance and rural vehicle finance segments, according to Kaul.
CMS Info Systems was listed on stock exchanges two years ago. "Since listing … our has been 20%," Kaul said. Based on the current market visibility and new business wins, the company is confident of delivering in the upper half of its revenue target range of Rs 2,500-2,700 crore in fiscal 2025, he said.
Source: Stocks-Markets-Economic Times
