 "We are looking for inorganic growth in media: Sanjiv Goenka")
In three years, the RP-Sanjiv Goenka group has grown from Rs 6,200 crore to Rs 14,500 crore, an increase of 133%. In an interview with Probal Basak and Ishita Ayan Dutt, Chairman, Sanjiv Goenka, charts out the growth plan, which is a mix of organic and inorganic methods. Edited excerpts:
To what extent has the RP-Sanjiv Goenka achieved its targets?
We are almost at the end of the year. If I compare to 2010-11 when the revenues were Rs 6,200 crore, we will close 2013-14 with Rs 14,500 crore revenues. Assets were Rs 8,000 crore, we will close this year with Rs 28,000 crore. EBITDA was Rs 700 crore, we will close the year with Rs 2,350 crore. Net profit in 2010-11 was Rs 300 crore, we will close the current year with over Rs 900 crore. That is the broad overview.
Big plans were lined up for Saregama. What is the status?
What is the progress on television software development?
Our national television business is going to be a thrust for us. We will actually see five programmes on air from April-May onwards. We are now the biggest producer for Savdhan India on Life OK. Our production got the best award in that category overtaking Crime Patrol. They have got multiple producers, but we do bulk of the production for them.
You will see some new programmes on prime channels at prime time. There will be TV programmes based on Bengali literature.
For Saregama, I expect, 2014-15 to be a much better year. Film production is not something we are good at. It is too variable. It is a complete exit.
For Phillips Carbon Black (PCBL) you had looked at Evonik at one point in time. Is there any other big acquisiton plan for the company?
Evonik did not happen. The trade is now going through a down cycle. Probably it is not the right time to expand. Having said that, our new plant in Cochin for 15,000 tonne has just started. In Mundra we have put up a 8 mw power plant based on the waste gas. We have done bottlenecking of capacity in Durgapur.
That has just began. So with minimum capital expenditure we have botttlenecked some capacity. We have got land in Tamil Nadu for a plant, we have got land in Egypt for a plant. We are going slightly slow on these projects.
What is the Egypt plan?
We want to have roughly 150,000 tonnes in two phases. We have got the land but are going a little slow because the market is depressed. And Egypt is not politically in the best position.
What is the plan for the proposed Dumka power plant in Jharkhand following controversy surrounding coal block allocation?
Until the mine (at Mahuagiri block) happens we are not going to invest in the power plant. There needs to be clarity. Also, there has been change in the government. Everytime we have made some progress, it has got delayed. We hope there is stability in government. We are going slow, that is clear.
CESC is expanding distribution business taking over power supply business in Ranchi. What is status now? What is the further expansion for power distribution business?
That again is done. We won the bid, signed the agreement, it went through in the Cabinet and joint audit is also done. We are ready. Last I heard from the Jharkhand government is that it is happening very soon. Once they give final nod, we will start.
We have got complete comprehensive document and plan, in which states which cities to go for. We have actually worked hard on this. We have a plan ready where to bid aggressively, and where to bid passively.
Firstsource seems to have done well since acquisition. What is the way forward?
It has done very well in last 15 months. We now want to grow in that business. One task is to reduce cost, part of which has happened. Secondly, we need to weed out non-profitable accounts. Thirdly, we need to grow our relevance to our existing clients.
We want to lead in parameters which matters to our clients. We have done it in the power sector, we have to do that with Firstsource. That is the journey ahead for us.
You have been scouting for a big acquisition target in the media space. Any headway?
Yes, I am interested in media. It can be both print or television. We are looking for inorganic for sure in media. I cannot say much on that. We don't want to buy something just for the sake of being in that space, we will go for it if it makes commercial sense.
This is not a space I understand completely. I may not be able to get in the timeframe I want to. Ideally, I would have liked to do the deal yesterday.
To what extent has the RP-Sanjiv Goenka achieved its targets?
We are almost at the end of the year. If I compare to 2010-11 when the revenues were Rs 6,200 crore, we will close 2013-14 with Rs 14,500 crore revenues. Assets were Rs 8,000 crore, we will close this year with Rs 28,000 crore. EBITDA was Rs 700 crore, we will close the year with Rs 2,350 crore. Net profit in 2010-11 was Rs 300 crore, we will close the current year with over Rs 900 crore. That is the broad overview.
Big plans were lined up for Saregama. What is the status?
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There is going to be new, young and easy version of Saregama .com. This will be an app, which will be available on every android, every phone. You can download from that. You will see a big app we are launching, which is going to be interactive. It is modeled on one of the most successful television programmes. It is going to be music-based and interactive.
What is the progress on television software development?
Our national television business is going to be a thrust for us. We will actually see five programmes on air from April-May onwards. We are now the biggest producer for Savdhan India on Life OK. Our production got the best award in that category overtaking Crime Patrol. They have got multiple producers, but we do bulk of the production for them.
You will see some new programmes on prime channels at prime time. There will be TV programmes based on Bengali literature.
For Saregama, I expect, 2014-15 to be a much better year. Film production is not something we are good at. It is too variable. It is a complete exit.
For Phillips Carbon Black (PCBL) you had looked at Evonik at one point in time. Is there any other big acquisiton plan for the company?
Evonik did not happen. The trade is now going through a down cycle. Probably it is not the right time to expand. Having said that, our new plant in Cochin for 15,000 tonne has just started. In Mundra we have put up a 8 mw power plant based on the waste gas. We have done bottlenecking of capacity in Durgapur.
That has just began. So with minimum capital expenditure we have botttlenecked some capacity. We have got land in Tamil Nadu for a plant, we have got land in Egypt for a plant. We are going slightly slow on these projects.
What is the Egypt plan?
We want to have roughly 150,000 tonnes in two phases. We have got the land but are going a little slow because the market is depressed. And Egypt is not politically in the best position.
What is the plan for the proposed Dumka power plant in Jharkhand following controversy surrounding coal block allocation?
Until the mine (at Mahuagiri block) happens we are not going to invest in the power plant. There needs to be clarity. Also, there has been change in the government. Everytime we have made some progress, it has got delayed. We hope there is stability in government. We are going slow, that is clear.
CESC is expanding distribution business taking over power supply business in Ranchi. What is status now? What is the further expansion for power distribution business?
That again is done. We won the bid, signed the agreement, it went through in the Cabinet and joint audit is also done. We are ready. Last I heard from the Jharkhand government is that it is happening very soon. Once they give final nod, we will start.
We have got complete comprehensive document and plan, in which states which cities to go for. We have actually worked hard on this. We have a plan ready where to bid aggressively, and where to bid passively.
Firstsource seems to have done well since acquisition. What is the way forward?
It has done very well in last 15 months. We now want to grow in that business. One task is to reduce cost, part of which has happened. Secondly, we need to weed out non-profitable accounts. Thirdly, we need to grow our relevance to our existing clients.
We want to lead in parameters which matters to our clients. We have done it in the power sector, we have to do that with Firstsource. That is the journey ahead for us.
You have been scouting for a big acquisition target in the media space. Any headway?
Yes, I am interested in media. It can be both print or television. We are looking for inorganic for sure in media. I cannot say much on that. We don't want to buy something just for the sake of being in that space, we will go for it if it makes commercial sense.
This is not a space I understand completely. I may not be able to get in the timeframe I want to. Ideally, I would have liked to do the deal yesterday.