'Wealth is Also About Giving Back'

Sanjiv Goenka on the challenges in pivoting towards a consumer-facing business, unfair comparisons with his father and being a foodie

- By SAMREEN WANI

The year 2011 marked a significant inflection point for the Goenka business legacy. Following the formal family division, the RP-Sanjiv Goenka Group was founded with Sanjiv Goenka at the helm of the companies that formed his vertical of the earlier RPG Enterprises. In the 15 years since that split, the Kolkata-based conglomerate has undergone a strategic, aggressive and visible transformation. Far from remaining a legacy company anchored solely in power and carbon black, Goenka has carved out a diversified and increasingly consumer-facing empire, placing significant bets on sectors ranging from fast-moving consumer goods (FMCG) to professional sports.

Goenka inherited two formidable businesses of CESC Limited (power generation and distribution) and Phillips Carbon Black Limited (PCBL). The initial idea wasn't to discard these core businesses, but rather to refine their operations for greater efficiency.

Recognising the inherent value of its operational expertise, the group pushed CESC to expand its power-generating business into new markets like Maharashtra and Haldia, diversifying beyond Kolkata. And acknowledging the global and national pivot towards sustainable energy, the group is actively steering its energy portfolio towards renewables, with ambitious targets to develop substantial solar capacity in the next five years.

Similarly, the recent acquisition of Aquapharm Chemicals by PCBL, which is already a global player, shows a move in the high-growth specialty chemicals space.

However, the most dramatic transformation has been the strategic pivot from a predominantly business-to-business (B2B) entity to a consumer-facing company which Goenka says required a “different mindset and skill base” and which needed “different kinds of people”. This shift was executed through a mix of acquisitions and organic growth.