Piramal Enterprise announced the whopping growth in the financial concern of the company. The financial service has literally overtaken the pharmaceutical manufacturing and health services. The financial services income is INR 498 Crore whereas the consolidated income is INR 10,639 Crore. The consolidated revenue rose by 24% in FY2018. The financial service income rose by 49%.
The traditional business of the company, i.e. the contract manufacturing of pharmaceutical products rose by 11% to INR 4322 Crore. The company operates in pharmaceutical manufacturing, financial service, critical care, consumer healthcare, data analytics in healthcare, etc. It also runs a real estate and a glass concern, handled by Anand Piramal, Ajay Piramal’s son.
The financial services were adopted by Ajay in 2010 after he sold the pharmaceutical flagship to Abbott at a whopping sum of $2.9 Billion. Ajay said that the team has completed the initiative t streamline Piramal Finance with Piramal Capital to form Piramal Housing Finance. The growth in the loan book of the Corporate Finance Group touched a 118% mark that amounts to INR 8209 crore this year at the end of March 2018. The license house financing was received back in 2017.
The philosophy of Piramal Enterprise, headed by Ajay Piramal, is to invest in something that provides a 20% return or more every year. The net profit of the enterprise rose to 24% this year that summed up to INR 1551 Crore. It was INR 1252 Crore in 2017. The recent proposal of merging the financial service providing companies Shriram Group and IDFC has been aborted.