Goenka's Bold Strokes

Over seven years, Sanjiv Goenka has remade his group by shedding an obstinate old guard and focusing on bottomlines. Now, with a demerger imminent at CESC, the value of the flagship power business—and the newer ones—are waiting to be unlocked

- Aveek Datta

Quite a few pieces of the artwork that adorn the walls of the fifth floor of CESC House (the heritage building in central Kolkata previously known as Victoria House), that serves as the RP-Sanjiv Goenka (RP-SG) Group’s headquarters, have been acquired by the conglomerate’s chairman from budding artists. How does Sanjiv Goenka, 56, know, in the absence of pedigree, which of these paintings will go on to become multi-baggers? “You can figure out from the brushstrokes,” replies Goenka, who was ranked 91 on the 2016 Forbes India Rich List with a wealth of $1.4 billion.

Like with art, Goenka isn’t afraid of taking bold bets in business either. He assumed independent control of his share of RPG Enterprises, following a division of business interests between his elder brother Harsh Goenka (currently chairman of RPG Enterprises) and himself in 2010. Ventures belonging to the undivided RPG Enterprises, founded by Goenka’s father, the late Rama Prasad Goenka, such as power generation, power distribution, retail and carbon black are now a part of the RP-SG Group. His brother, based in Mumbai, controls businesses including tyres (under the Ceat brand), engineering and software services (Zensar Technologies).

Sanjiv Goenka has since made sweeping changes in several areas of the group. His focus on operational efficiency and the constitution of a new management across group companies, where the old guard was “resisting change”, appear to be working for the RP-SG Group.

This allows Goenka to prepare to unlock the next phase of value creation through measured expansion and an elaborate restructuring. Businesses like power generation, power distribution, retail, FMCG and mall development (all currently part of group flagship CESC Ltd) will be spun off as separate listed entities (see