Mr Sanjiv Goenka – the younger son of the Chairman Emeritus of the Rs 19,000-crore RPG Enterprises, Mr R.P. Goenka – today carved out his own corporate group.
The new group – RP-Sanjiv Goenka Group – will have in its fold five business verticals with a combined turnover of Rs 9,000 crore on an asset base of Rs 14,000 crore. These verticals so far were being managed by Mr Sanjiv Goenka.
The 10 companies that will henceforth be under the fold of RP-Sanjiv Goenka Group are: CESC Ltd, Noida Power Co Ltd and Integrated Coal Mining Ltd (ICML) in the power and natural resources vertical; Phillips Carbon Black Ltd (PCBL); Spencer's Retail Ltd, MusicWorld Retail Ltd and Au Bon Pain Café India Ltd (ABPCIL) in the retail segment; Saregama India Ltd and Open Media Network Ltd under the media and entertainment head; and CESC Properties Ltd in the infrastructure vertical.
Incidentally, Mr Sanjiv Goenka said he will continue to be the Vice-Chairman of RPG Enterprises. Though he enjoys an equal “right” over the “RPG” brand (along with the elder brother and chairman of RPG Enterprises Mr Harshvardhan Goenka), Mr Sanjiv Goenka indicated that he was unlikely to exercise the “option”.
Mr R.P. Goenka will be the Chairman Emeritus of the new group chaired by Mr Sanjiv Goenka.
Truncated RPG group
The RP-Sanjiv Goenka Group has no cross-holding with the RPG Enterprises Chairman, Mr Harshvardhan Goenka-controlled businesses including, tyre major Ceat Tyre and its Sri Lanka-based joint venture and Ceat Kelani Associated Holdings; power transmission EPC contractor KEC International; IT arm Zanesar Technology; RPG Life Sciences and Raychem RPG.
In addition to Mr Harshvardhan Goenka controlled companies, the truncated RPG Enterprises also has in its fold Harrison Malayalam and Spencer International Hotels – jointly held by the brothers.
Jointly held
Incidentally, while Mr Harshvardhan Goenka does not have any interest in the RP-Sanjiv Goenka Group, Mr Sanjiv Goenka has existing interests in RPG Enterprises through plantation major Harrison Malayalam and Spencer International Hotels.
While Harrison Malayalam is yet to be separated, Mr Sanjiv Goenka owns six tea estates (Wallardie, Moongalaar, Pattumalay, Wentworth, Lockhart and Panniar) and five rubber estates (Nagamalay, Kundai, Kumbazha, Mooply and Mundakayam) out of the total assets of the company.
Spencer's Hotels has three properties in Bangalore, Chennai and Ootacamund managed by the Taj group of hotels.
“We have no plan to expand our presence in the hotels segment,” Mr Goenka said. He is the Chairman of both the companies.
No competition
On possibilities of future competition between the two groups, Mr Sanjv Goenka said that while the succession plan laid out by Mr R.P. Goenka did not put any legal bar to this effect, however, it was “implicit” that the brothers would not engage in competitive businesses.
“We (brothers) have very cordial relations and there is an emotional bonding between us. We have nothing but goodwill for each other and will be free to draw strength from each other, as and when it is necessary. There is no question of competition between us,” he added.