DOWNLOAD PDF REPORT

Building India’s Future

APL Apollo: Building India, one tube at a time

APL Apollo is more than a steel tubes manufacturer; it plays a key role in India’s infrastructure growth. The company produces pre-engineered steel tubes and structures that are lighter and more cost-effective than traditional concrete and brick construction. This industrial efficiency translates directly into social impact: schools, hospitals, warehouses and metros are built around 40% faster while cheaper, expanding access to education, healthcare and economic activity across Tier 2 and Tier 3 cities. By reducing material waste and enabling modular construction, APL Apollo also addresses environmental sustainability (a key consideration in long-term urban development). Modular steel construction reduces raw material intensity and supports recycling, while economic development occurs naturally through job creation at plants and construction projects. According to a study from the University of Hong Kong, modular steel construction can result in an approximate 46% reduction in waste when compared to conventional methods.
The company’s products form part of the backbone of New India’s industrial and urban ecosystems, showing that long-term profitability can coexist with social and environmental benefits.

Cholamandalam: Financial inclusion as a growth engine

Cholamandalam, a long-standing holding in our Indian portfolio, exemplifies how financial services can drive real social mobility. Unlike traditional banks, which historically often focus on large corporates, Chola targets the unbanked segments of India’s economy, such as small vehicle fleet operators, rural entrepreneurs and informal business owners. Vehicle loans, small-business credit and structured financing enable these individuals to grow their businesses, increase income and provide employment in their communities. For example, a single truck loan can transform a family business into a multi-employee operation, connecting villages to markets and enabling rural economic growth. By extending formal credit to these segments, Chola helps reduce borrowers’ reliance (and vulnerability) on informal money-lenders that often charge exorbitant interest rates (up to ten times higher), a common obstacle to small-business growth in rural India, as pointed out by the Reserve Bank of India.
Sustainability is embedded in Chola’s approach through responsible lending: products are designed to enhance borrowers’ livelihoods rather than create debt traps. Chola exemplifies how capital deployment can directly empower communities while maintaining a healthy and consistent growth track record.

Aptus Value Housing Finance: Housing finance delivering social benefits

Aptus, a fast growing name in our portfolios, illustrates how financial services can deliver social benefits in the housing sector. While other lenders tend to focus on higher salaried, urban borrowers, Aptus goes deeper into the Indian “underserved” economy, such as self employed individuals in rural and semi urban markets, and first time homeowners and households in Tier 2 and Tier 3 cities (which are considered by other lenders as high-risk segments. Despite the higher perceived risk, Aptus’s discipline and underwriting practices are reflected in very low non-performing assets that are well below industry averages, indicating the company’s resilience and risk management.
Aptus’ product offering (housing loans for self construction, home improvement and refurbishment, extensions, etc.) helps families move from informal cash credit (which can carry onerous interest rates of up to 60% annually) or lack of financing into secure, asset backed borrowing. By doing this, Aptus supports wealth creation (as a home is often a family’s largest asset) and improves living standards, so that families are not stuck in inadequate dwellings which are widely common in rural India.

Sources: Wei Pan and Zhiqian Zhang, as of 15th January 2023, 2 Reserve Bank of India’s report on currency and Finance as of August 2024.

Disclaimer: 

This marketing communication is issued by Alquity Investment Management Limited (“AIML”) for distribution both within and outside the United Kingdom. AIML is incorporated in England and Wales (Company No. 07992381) and is authorised and regulated by the Financial Conduct Authority (FRN 463991). Its registered office is Audrey House, Ely Place, London, EC1N 6SN. This material is for distribution to Professional Clients only, as defined under the Financial Conduct Authority’s (“FCA”) conduct of business rules, and should not be relied upon by any other persons. The Alquity Asia Fund, Alquity Future World Fund, Alquity Indian Subcontinent Fund and Alquity Global Impact Fund are sub-funds of the Alquity SICAV (the “Fund”), which is a UCITS-compliant investment vehicle and a recognised collective investment scheme under the Financial Services and Markets Act 2000 (FSMA) in the United Kingdom. The Alquity SICAV is an open-ended investment company managed by Limestone Platform incorporated under the laws of Luxembourg and authorised by the Commission de Surveillance du Secteur Financier (CSSF). The Fund is authorised under the UCITS Directive (Directive 2009/65/EC). Sub-funds may not be registered for distribution in all jurisdictions. Alquity Investment Management Limited acts as the investment manager to the SICAV.
The information in this document (this “Document”) is for discussion purposes only. This Document does not constitute an offer to sell, or a solicitation of an offer to acquire, an investment (an “Interest”) in any of the funds discussed herein. This Document is not intended to be, nor should it be construed or used as, investment, tax or legal advice. This Document does not constitute any recommendation or opinion regarding the appropriateness or suitability of an Interest for any prospective investor. This material is for distribution to Professional Clients only, as defined under the Financial Conduct Authority’s (“FCA”) conduct of business rules, and should not be relied upon by any other persons.
This Document may not be reproduced in whole or in part, and may not be delivered to any person (other than an authorised recipient’s professional advisors under customary undertakings of confidentiality) without the prior written consent of the Investment Manager.
This Document is qualified in its entirety by the information contained in the Fund’s prospectus and other operative documents (collectively, the “Offering Documents”). Any offer or solicitation may be made only by the delivery of the Offering Documents. Before making an investment decision with respect to the Fund, prospective investors are advised to read the Offering Documents carefully, which contains important information, including a description of the Fund’s risks, conflicts of interest, investment programme, fees, expenses, redemption/withdrawal limitations, standard of care and exculpation, etc. Prospective investors should also consult with their tax and financial advisors as well as legal counsel. This Document does not take into account the particular investment objectives, restrictions, or financial, legal or tax situation of any specific prospective investor, and an investment in the Fund may not be suitable for many prospective investors. An investment in the Fund is speculative and involves a high degree of risk. The Fund’s investment approach is long-term, investors must expect to be committed to the Fund for an extended period of time (3-5 years) in order for it to have an optimal chance of achieving its investment objectives.