Hinduja Group- the multi- billion dollar group is now ready to enter into the vehicle financing business in India. With RBI approval in its hand, the path seems clear for the group.

The group will enter the vehicle financing biz in the form of a new entity, Hinduja Leyland Finance (HLF) which has been established with an initial capital of Rs. 100 crore by the promoters. The entity is in talks with banks so as to receive funding for Rs. 850 crore worth loan in the first year.

HLF has been promoted by the flagship firm of the Hinduja Group and automobile maker, Ashok Leyland. It has received registration from RBI and it can thus commence with financing of commercial and allied vehicles.

The company aims to spread itself across 16 states through 130 centers and plans to increase it to 300 centers in the upcoming three years.

"HLF provides the vital link of vehicle financing, facilitating vehicle acquisition by our customers... I am confident that... HLF will prove to be a significant tool for market penetration and expansion for Ashok Leyland," Ashok Leyland Managing Director R Seshasayee said.

Ashok Leyland, Ashley Holdings and Ashley Investments would be putting up the initial capital of Rs. 100 crore.