First leasing: An equity research report; The ICFAI-SRC

Abstract

First Leasing Company of India Limited (FLCI) is the first leasing company of India. It wrote its first lease for Best and Crompton for Rs 30 lakhs in 1973. A SPIC group company, promoted by noted industrialist A.C. Muthiah . and Farouk M. Irani (termed the “Father of the Indian Leasing Industry’), the " company has diversified into Hire Purchase, Bill Discounting and consumer credit. It plans to go in for a mutual fund shortly - in tie up with Guiness Flight Global Asset Management Ltd., UK and also start operations of a credit rating bureau in tie up with Equifax, USA. First Leasing holds a diversified portfolio and concentrates on cultivating the strongest corporate names in the country. This 1s because of the feeling at -FLCI that if they restricted financing to any one particular industry, then its cashflow would be subject to the cyclical fortunes of that industry. So, FLCI _ has diversified its risk across a broad spectrum of growth industries and has made available its funds to companies such as Tisco, Telco, Mukund, Johnson & Johnson, Larsen & Toubro etc.