“CSR has emerged as an effective way to supplement the efforts of the government in an impactful way.”

Shri. V.P. Nandakumar shares with Marie Banu Manappuram Foundation’s CSR programmes.

Shri. V.P. Nandakumar is the MD & CEO of Manappuram Finance Ltd., one of India’s leading NBFCs and the pioneer of the institutionalised model of the gold loans business. Shri. Nandakumar took over the reins of a single branch family business in 1986, and over the next three decades presided over its growth and transformation into a financial sector powerhouse. His vision, values and leadership were instrumental in scripting this story that today touches millions of lives in India. 

Manappuram’s origins go back to 1949 when it was founded by the late V.C. Padmanabhan, father of Shri. Nandakumar. In those days, the firm was into money lending, and pawnbroking carried out on a modest scale at Valapad, a backward coastal village in Thrissur district of Kerala. After taking over in 1986 (the year his father expired), Shri. Nandakumar soon set about expanding the business in line with his ambitions and vision. 

In 1992, he incorporated Manappuram Finance Ltd., and within three years (in 1995) managed to get the company listed on the Bombay Stock Exchange. Since then, he has led from the front to transform Manappuram Finance Ltd. into a leading NBFC present across India with 4,611 branches in 28 states and UTs, with Assets under management (AUM) of about ₹269 billion, and a workforce of over 27,000. 

In recent years, Shri. Nandakumar has resolutely steered the company’s diversification into microfinance, home loans, vehicle finance, SME and personal lending to reshape the company into a full-spectrum NBFC. Today, about 30 per cent of the company’s total business comes from the non-gold side. 

Shri. Nandakumar’s achievements in business have earned him national recognition. On May 26, 2018, a special issue of the Business World magazine profiled him as one among 40 of India’s most valuable CEOs. Besides, Manappuram Finance Ltd. has emerged as one of the leading wealth creators in the Indian stock market. In December 2019, the Economic Times newspaper published the ET500 list of Top Wealth Creators of 2019 with Manappuram Finance Ltd. as the chart topper. 

Other than the focus on business, the cause of the wider community is central to his vision. He established the Manappuram Foundation at Valapad in 2009 to drive the corporate social responsibility (CSR) programme of the Manappuram group, even before the Companies Act made it mandatory. Today, the Manappuram Foundation oversees a wide range of projects in education, health care, and overall development of the rural communities. 

Shri. V.P. Nandakumar was born in 1954, holds a post-graduate degree in science and additional qualifications in Banking and Foreign Trade. He is a managing committee member of leading trade and industry associations such as FICCI, Assocham and FIDC. In January 2019, he was appointed to the Board of Governors of the Indian Institute of Management, Kozhikode. In July 2019, he was elected as an International Director of the Association of Lions Clubs International at its Milan (Italy) convention. 

In an exclusive interview, Shri. V.P. Nandakumar shares with Marie Banu Manappuram Foundation’s CSR programmes.

What inspired you to initiate CSR before the ACT was passed in 2013?

The CSR projects and initiatives of the company are mostly routed through the Manappuram Foundation, a charitable trust we had set up back in October 2009, well before it became mandatory for large companies. 

I would say our CSR is part to a wider quest to build sustainable businesses that create both market value as well as lasting social value. The Foundation brings resources and commitment to select projects that enrich people’s lives and make a visible difference to their lives. With this objective, the Foundation works in close co-ordination with local government official, social workers and NGOs, to promote programmes that advance well-being of disadvantaged sections of society. In this way, by integrating social imperatives into our corporate processes, we are trying in our own way to shoulder those extra responsibilities expected of a good corporate citizen. 

What made you choose rural development and education as Manappuram Foundation CSR focus areas?

As a company, we are deeply rooted in the coastal village of Valapad because this is where Manappuram began its journey in 1949 and this is where we have our head office. Therefore, the predominant focus of CSR has been to try and improve the lives of the local people who are mainly into fishing and agriculture. To this end, efforts are largely directed towards rural development and education levels of the local population.

Traditionally, agriculture and fishing were the main sources of livelihood in these parts. Migration to the Gulf in search of jobs began in the early 70s and intensified within a decade. Many families benefited from the Gulf wave but those who belonged to socially and economically backward sections and lacked skills and were left behind. This section of people depended on traditional activities like fishing and coconut harvesting for a living and they suffered even more when the Gulf boom led to a decline in agriculture and consequently the demand for unskilled labour. Today, we believe that rural development and education will help reshape the future of those sections left behind in society.

How were you able to contribute to the rural communities during the COVID pandemic?

We have contributed generously through our professional, technical and financial interventions especially in the coastal belt of Thrissur District. The early focus was on creating awareness and dissemination of information to prevent spread of Covid-19 through posters, boards etc. We distributed such material to most of the Government offices including Health Centre, Police Stations and Gram Panchayaths. Announcements regarding prevention methods and the importance of social distancing were made in the remote areas of Trissur District in collaboration with IMA Thrissur. 

As part of preventive measures, the Manappuram Foundation distributed Sanitizers, Gloves, Face Masks, N95 masks, three- ply masks, etc. through Gram Panchayaths, local Health Centres and Police and Fire forces. The Foundation donated 42 cots and 55 mattresses (for quarantine purpose) along with 5,000 face shields, thermal scanners, sanitizers, gloves, masks etc. to the police force. To minimise disruption for school students from poor families, 20 televisions were donated in the coastal area of Thrissur and a further 500 televisions were donated through the Lions Clubs International District 318C. A High Dependency Unit (HDU) in Kannur Medical College was implemented in collaboration with Lions Clubs International District 318E. Community Health Centres and Primary Health Centres were supported with sanitizers and masks, while 60 litres of Sanitizer and a 100 hundred Pulse Oximeters were handed over to Alappuzha District Collector. Besides, over 400 poor families were supported through free supply of grocery kits. 

Do you think CSR in India has augmented development and helped in resolving social issues?

In relatively poor countries such as India, where the government has limited capacity to take care of all the pressing needs of its people, projects under CSR have emerged as an effective way to supplement the efforts of the government in an impactful way. 

For example, soon after the Manappuram Foundation came into being in 2009, the first major project it implemented was to extend free health insurance (up to Rs.60,000 per family) to 20,000 BPL families extending benefit to approximately 1 Lakh individuals in the coastal belt of Thrissur district. Essentially, the project was about deploying manpower and other resources to ensure that the benefits of existing government health schemes like RSBY (Rashtriya Swasthya Bima Yojana) and UHI (Universal Health Insurance) were properly extended to people who otherwise were not even aware that such schemes existed, or were unable to pay the nominal premium required to be met. 

How has the Social Audit of Manappuram Foundation help in realigning the CSR deliverables effectively? 

Social Accounting and Audit conducted for the period 2016 – 2018 by SAN INDIA helped us to analyze the social impact of our CSR activities and to realign the CSR deliverables with the mission and vision of the Manappuram Foundation. As part of the Social accounting exercise, we could identify that education is the sector most deserving of attention by the Foundation. The suggestions shared by the team were well accepted and it’s being implemented across primarily education, health and community welfare activities.