Shriram Group well on course for merger of two firms via tech integration

Group chief digital officer says the conglomerate is working on one of the country's largest super apps by bringing the products of all associate concerns under one umbrella

From laying the groundwork for super app ‘Shriram One’ to starting the training process for 50,000 employees, to commencing trial runs for cross-selling of products in 500 branches, Shriram Group is on track for the technological integration and merger between Shriram City Union Finance Ltd (SCUF) and Shriram Transport Finance Ltd (STFC).

The group’s digital arm Novac Technology Solutions is spearheading the entire process of digital integration, while the group is awaiting the final nod for the merged entity Shriram Finance. According to officials, one round of training for employees has taken place through Novac’s specialised platform called myCoach. The digital team is also moving ahead with initiatives like going paperless for customers, steps to engage customers more on mobile applications and introduction of new streams like payment-based products.

The final nod for the merger is likely to come by October or November. The group is awaiting clearance from shareholders--scheduled during the first half of July--and approval from the Competition Commission of India.

“The technology integration is already on. In addition, we are working on one of the largest super apps in the country, bringing all the products of the Shriram Group under one umbrella. Related partners in the ecosystem (such as tyre companies) can distribute their products through the mobile app. A retail customer may also be able to book bus tickets through it,” said Ajay Thomas John, group’s chief digital officer.  

Through the super app, the customer can learn about and consume products at a faster pace in paperless mode, getting loan clearances faster and with minimal documentation. “It will be like a Shriram Branch on mobile.” The first phase of the super app will be launched by May 2023. We are working on one of the largest super apps in the country bringing all the products of Shriram Group under one umbrella3 and the final version will take around 30 months from now," John added.

Both SCUF and STFC have started trial runs for cross-selling of products in at least 500 branches as part of the integration process. The technology team had, in fact, kicked off the integration process in December itself, soon after the announcement of the merger.

“In December, we started hosting the products of one company on another platform (for the employees). Training has been on since January for cross-selling the products of other companies on myCoach. We are even doing the pilot of cross-selling at 500 branches so that orientation of the employees actually happens,” said N S Nanda Kishore, Director and chief executive officer of Novac Technology Solutions.

myCoach is a specialised learning management system that offers customised digital courses for employees across the different firms in Shriram Group. As part of the merger, separate courses and modules are being introduced through myCoach for employees. Kishore added that customers will not face any technological issues because of the merger and the final data integration will happen within two to three months after the final nod for merger.

On the other hand, Novac, which currently earns 90 per cent of its revenue from group companies, wants to expand its business to companies outside the group. “We will continue to work for the group. We expect to grow at about 30 per cent a year. In the next three years, we want 50 per cent of our business to come from outside,” Kishore added.