OREANDA-NEWS. April 19, 2012. Tata Capital has signed a letter of intent (LoI) with Century Tokyo Leasing Corporation (CTLC), a leading leasing business company closely allied with the Mizuho Financial Group, for collaboration on leasing business in India.

The LoI will help Tata Capital combine its business financing capabilities and CTLC’s strong technical know-how in the equipment leasing space to target the rapidly growing equipment leasing services market in India. It will provide leasing solutions for financing of equipment ranging from large machinery such as construction equipment and power generators, to medical and IT equipment. Both the companies will also explore providing financial assistance and advisory services to several Japanese joint venture companies in India.

Dedicated teams from Tata Capital and CTLC will jointly pursue business opportunities for the new businesses as above.

The equipment leasing market in India is presently estimated to be an approximate Rs20,000-crore market and is expected to grow at an annual rate of 25-30 percent over the next few years. The backdrop of increased infrastructure spending in India, which is likely to double to USD 1 trillion under the 12th Five Year Plan, makes leasing a highly attractive market for Tata Capital and CTLC to jointly tap into.

Speaking on the occasion, Praveen Kadle, managing director and CEO, Tata Capital, said, “Globally, leasing and renting are the principal forms of asset creation. In India, the share of equipment leasing in asset building is only 5-6 percent. This signifies a huge untapped potential in the segment. Tata Capital is committed to the leasing business, and in CTLC, we have a very capable partner who has a strong presence and deep experience in running the leasing business.”

“We are pleased to collaborate with Tata Capital to offer leasing services in India. Tata Capital’s vast network and experience will help us service the rapidly growing infrastructure sector in India, and also provide support to Japanese companies that are looking to expand their business presence to India,” said Shunichi Asada, president and CEO, Century Tokyo Leasing Corporation.