The Kolkata-based RPSG conglomerate is betting on energy, chemicals and IT-enabled services (ITeS) to lead its growth in the coming years, according to chairman Shashwat Goenka. Speaking at the CII National Leadership Summit in Mumbai, Goenka identified these three sectors as frontrunners from a diverse portfolio that stretches from power and chemicals to snacks, music, retail and sports. The 35-year-old scion emphasized that RPSG has always been a group that reinvented businesses or entered new industries relevant for the future, citing this as a key reason for their success over the last 220 years.
The three businesses identified by Goenka are housed in listed companies with substantial market capitalizations. CESC Ltd, the group's utility arm, deals with power distribution and renewable energy generation under subsidiary Purvah Green Power Pvt Ltd, with a market capitalization of ₹17,400 crore. PCBL Chemical Ltd has a market cap of over ₹12,800 crore and makes carbon black, a fine powder of elemental carbon used in manufacturing tyres and inks, along with specialty chemicals through its Aquapharm subsidiary acquired in 2023. Firstsource Solutions Ltd, valued at ₹17,400 crore, serves as the group's BPO arm catering to healthcare, banking and financial services, and retail industries.
In the renewable energy space, RPSG has set ambitious expansion plans through its subsidiary Purvah Green. The group acquired a 1.4-gigawatt (GW) operational solar power portfolio from ReNew in August and has plans to reach 10 GW of capacity by 2030. This would position the group as one of the top 10 renewable energy producers in the country. Goenka expressed confidence that the group will exceed this target, stating that both organic and inorganic growth will be part of its strategy. The renewable energy business operates under Purvah Green Power Pvt Ltd, which is part of the CESC group structure.
PCBL Chemical Ltd has experienced a 25% stock increase over the past six months, driven by anticipated higher carbon-black prices and improved export prospects. The company expects carbon black pricing, which accounts for around 80% of revenue, to strengthen as disruptions at Russian refineries tighten supplies. Management anticipates cost savings of ₹200-250 crore over the next four to six quarters through various optimizations, with Ebitda margin expected to expand to 14.1% in FY28 from 12.7% in FY26. The stock currently trades at a P/E multiple of 48.7 compared to three and five-year averages of 34.5 and 25 respectively, reflecting premium expectations for strong future earnings.
Beyond the core growth engines, RPSG operates other significant businesses including sports franchises under the Super Giants brand, music label Saregama, snacks under the Too Yumm! brand, media, and retail chains Spencer's and Nature's Basket. The group launched its flagship Too Yumm! snacking brand in April 2017 and is housed under RPSG Ventures Ltd, which has a market capitalization of just under ₹2,900 crore. On concerns over the lack of profitability of the consumer goods business, Goenka acknowledged it is at an early stage but noted the business is growing faster than the market.
Separately, the Sanjiv Goenka-led RPSG Group is exploring the sale of a 15-20% stake in Lucknow Super Giants (LSG), with the process of appointing a banker for the mandate underway. Goldman Sachs has emerged as the frontrunner to advise on the transaction, though the final decision on the banker is yet to be made. The group is seeking a valuation of $1.5 billion to $2 billion for the Lucknow franchise, which it acquired for ₹7,090 crore ($800 million) in November 2021. At the sought valuation, a 15-20% stake could be worth $225 million-400 million.
