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COMPANY PROFILE

Manappuram's origins go back to 1949 when it was founded in Valapad (a coastal village
in the Thrissur District of Kerala) by the late V.C. Padmanabhan, father of Shri
Nandakumar.

Shri Nandakumar took over the reins of this one Branch business in the year 1986 when
his father expired.

Manappuram Finance Ltd. was incorporated in 1992 (the original name was Manappuram
General Finance and Leasing Limited) with its registered office at Valapad, in the
Thrissur District of Kerala.

It is India's first listed and highest credit rated gold loan company and widely recognized
as a leading wealth creator in the Indian stock market.

Manappuram Finance Limited, has in recent years, emerged as a leading non-banking

financial company (NBFC) in India under the stewardship of Shri V.P. Nandakumar, MD
& CEO of the Company.

In 2007, Manappuram Finance Ltd became the first Kerala based NBFC to receive
foreign Investment from FIIs.

Customers

Customers are typically small businessmen, vendors, traders, farmers and salaried
individuals, who for reasons of convenience, accessibility or necessity, avail of MFL
credit facilities by pledging their gold jewelry with them rather than by taking loans from
banks and other financial institutions.

Strength
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Strong branch network of 3,300 branches spread across 26 States in India.

Strong brand name in the gold financing in south India.

Ability to quickly disburse gold loans based on the gold appraisal skills developed over
decades.

Strong risk management architecture to shield the company from employee thefts,
burglaries and the use of spurious gold as collateral.

Weakness
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The brand is relatively unknown outside south India. However, the company is trying to
build its brand through heavy advertising.

Dependence on banks for funding.

Opportunity
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Opportunity to grow its operations in underpenetrated areas i.e. other than South India.

Opportunity to diversify in the related businesses like selling gold coins and bars and
financing these purchases.

Threats
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There is a potential regulatory threat that the interest rates charged by gold lenders like
Manappuram could be capped.

State governments intervening in the operations of gold lenders like Manappuram.

Fluctuation in gold prices could lead to NPAs rising and/or reduce the potential size of
the gold loans market.