The Genesis of Manappuram Finance: A Legacy Built on Trust

Laozi, the ancient philosopher, once said, “A journey of a thousand miles begins with a single step,” a truth that finds its echo in the remarkable rise of V.P. Nandakumar. In 1986, when Nandakumar took over his late father’s modest money-lending business, no one could have predicted the extraordinary trajectory it would follow. Today, Manappuram Finance Ltd stands as a testament to his vision and leadership, evolving into one of India’s premier NBFCs. With 5,200 branches across 28 states and Union Territories, Assets Under Management (AUM) of Rs 42,069 crore, and a workforce exceeding 50,000, the company’s growth is nothing short of extraordinary.

Nandakumar, the Managing Director and CEO of Manappuram Finance Ltd, has steered his enterprise with astute leadership, razor-sharp acumen, and a visionary approach, transforming it from modest beginnings in Valapad, a small village in Kerala’s Thrissur district, into a financial powerhouse with a pan-India presence. Under his leadership, the company has successfully diversified its portfolio, expanding into microfinance, home loans, vehicle finance, and SME and personal loans, broadening its spectrum and solidifying its position as a major player in the financial sector.

Versatile Leadership and Expertise

Born in 1954, Nandakumar holds a post-graduate degree in science, along with additional qualifications in Banking and Foreign Trade, which have equipped him with a robust foundation for his career in finance. His expertise has been recognised in various trade and industry associations, including FICCI, ASSOCHAM, and FIDC, where he has actively contributed to shaping policies and promoting best practices within the sector. His commitment to education and professional development is evident in his appointment to the Board of Governors of the Indian Institute of Management, Kozhikode, in January 2019, a role that speaks a lot about his influence in the realm of management education.

Nandakumar is a Distinguished Invitee to the All-India Management Association’s Council of Management, where he lends his insights to advancing management practices across the country. Serving as Co-Chair of the State Council of FICCI Kerala, he is proving his prowess in fostering collaboration among industry leaders and enhancing the business landscape in the region. Through these engagements Nandakumar continues to impact the educational and industrial sectors positively, guiding future generations of leaders in the financial services industry.

How It All Began

Manappuram Finance Ltd has its origins in 1949 when it was established by Nandakumar’s father, the late V.C. Padmanabhan, in Valapad. Initially focused on money lending, the business began with humble operations that would eventually set the stage for its transformation into a financial giant. After his father’s untimely passing in 1986, Nandakumar took charge of the family business, and from that point on, the journey has been one of relentless growth and success.

Diversification and Growth

One of Nandakumar’s most significant contributions has been his proactive approach to diversification. Recognising the evolving needs of customers, he has steered the company into new territories. Today, a remarkable 49% of Manappuram’s total business originates from non-gold segments, a clear reflection of his strategic foresight.

Nandakumar’s efforts have not gone unnoticed. His exemplary leadership and remarkable achievements have fetched him recognition on coveted national platforms. In May 2018, ‘Business World’ magazine listed him among India’s 40 most valuable CEOs. The ‘Economic Times’ acknowledged Manappuram as the ‘chart-topper’ in their ET500 list of Top Wealth Creators of 2019. Furthermore, he received the Hurun Industry Achievement Award in February 2023, a testament to his enduring impact in the business world.

Nandakumar’s dedication to social responsibility stands as a fundamental aspect of his vision beyond business success. In 2009, he founded the Manappuram Foundation, with the mission of uplifting the community through a range of impactful initiatives. The foundation oversees the management of two schools, skill coaching centers, yoga centers, and wellness facilities. Additionally, it operates a sports complex with badminton and basketball courts, as well as an aquatic complex featuring a state-of-the-art swimming pool.

His commitment to community welfare is further demonstrated by the foundation’s services, offered at subsidized rates to individuals below the poverty line (BPL). The foundation also operates a fleet of ambulances equipped with advanced medical support, reinforcing its vital role in supporting the local population. Nandakumar firmly believes that these community upliftment efforts will create a lasting positive impact, much like a butterfly effect, as his empire continues to grow.

Leadership Beyond Borders

Beyond his role at Manappuram Finance, Nandakumar has made significant contributions to international organizations. His association with Lions Clubs International began in 1981, where he has held various key leadership positions, including multiple district council chairperson and member of the LCIF Corporate, Foundation & Government Gifts Committee. His unwavering dedication to community service was recognized when he was elected as an international director at the 102nd International Convention in Milan, Italy, in July 2019, marking a pivotal moment in his global impact.

Currently, Nandakumar serves as the Chair of LCCIA and Chairperson of the ISAME Area Leadership. In these roles, he actively promotes collaboration among Lions Clubs worldwide, championing service projects that address critical social issues. His leadership not only strengthens the organization but also underscores his commitment to creating a positive impact across borders, exemplifying the essence of global citizenship and community empowerment.

Promoting Financial Inclusivity

Nandakumar’s influence reaches far beyond the confines of Manappuram Finance. He has been a driving force in promoting financial inclusivity through his involvement in several key ventures. Notably, he played a pivotal role in establishing Equitas Small Finance Bank Ltd., India’s first small finance bank that provides affordable financial solutions to the underserved. His efforts also contributed to the formation of Aptus Value Housing Finance India Ltd., both of which were successfully listed on the stock exchange, marking significant milestones in the Indian financial landscape.

Additionally, Nandakumar’s promotion of Five Star Business Finance Ltd., an NBFC specialising in MSME finance, further emphasises his commitment to enhancing access to financial services for marginalised sectors. By focusing on micro, small, and medium enterprises, he has championed initiatives that empower entrepreneurs and drive economic growth. Through these endeavours, Nandakumar continues to champion financial inclusivity, ensuring that diverse segments of society have the opportunity to participate in the economic mainstream.