Fri. Mar 29th, 2024
RP Goenka Group Is Looking For Potential Local IT, Retail Companies For AcquisitionSource SportzPoint

RP Sanjiv Goenka Group is scouting for the companies in local retail, technology, and power distribution sectors as it wants to bolster the scale of the business.

“We are poised for a very aggressive expansion,” Group Chairman Sanjiv Goenka, on Wednesday, told Bloomberg TV. He added that the Kolkata headquartered conglomerate was keen to acquire more retail chains and related infrastructure after adding Nature’s Basket under its umbrella in 2019.

The purpose, he said, is to “gain more critical mass” and “greater mass” when asked how the conglomerate will compete against billionaire Mukesh Ambani-led Reliance Industries and American e-commerce company Amazon.

The group, generating over $4 billion in annual revenues, is also looking for a potential buyout in power utilities and IT-enabled services, the sector in which it had already bought three companies in one year. 

Goenka, however, abstains from expanding the business at the cost of piling on debts. “Theoretically, we could have been more aggressive,” he said. “We could have taken more debt. But we prefer not to grow by debt.”

Besides scaling up the group’s power distribution division, which includes Calcutta Electric Supply Corporation, Goenka is contemplating securing more electricity from renewable energy sources. “We are not investing at all in the thermal power business,” he said. “It’s a conscious decision the board has taken.”

The billionaire is sanguine about the current inflation fueled by the global energy crisis will be a short-lived phenomenon. In the next six months, he expects price pressures to “level out.”

“We do see an impact of oil prices, and there’s a mismatch in the supply scenario. In the short term, there’s a definite impact,” Goenka said. “We do believe it’s short-term and won’t be significant in the long term.”

 

By Harshita Sharma

I bring to you updates from business, policy and economy spectrum.

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