From a no-frills office behind one of the many bustling, palm-lined streets of Chennai, India’s jewel of the South, the Shriram Group began its story.
Founded in 1974, Shriram has grown to become one of India’s most respected and trusted business houses, serving the mass-market with essential services. It is a business that can convincingly claim that “the bottom of the pyramid is the top of our agenda” and has been for 40 years.
In 2011, LeapFrog invested in a Shriram subsidiary, Shriram CCL, a distribution group offering unique access to the consumer growth story across India.
Shriram stands out for its deep integrity, community-based business model, committed management team, and emphasis on the importance of long-term strategy over short-term wins. It’s there for the long haul. This is perhaps one reason it reaches 7 million people with insurance and savings today, of which 5 million are low income.
For many of its customers, Shriram CCL is also one of the first points of contact they have with the formal financial system. The company reaches people through a smart and low-cost distribution strategy, using large agency forces in local villages. It sells into traditional ‘Chit’ programs – or rotating credit and saving schemes – as well as direct to new customers in towns and villages across the country’s mind-stirring canvas.
Says G.S. Sundararajan, Managing Director of Shriram Capital, “Our strategic partnership with LeapFrog is redefining financial inclusion in India.”
In 2017, LeapFrog successfully exited its investment in Shriram CCL, after significant value-add and impact.