Goenka group

Harsh Goenka

RPG Group, Harsh Goenka is the chairman of RPG Group.

Goenka is a renaissance man. Apart from being a successful industrialist, he is also an avid art connoisseur. His Twitter account describes him as a sports enthusiast. Like his diverse pursuits keep him going, Goenka’s diversified company runs on IT.

RPG Enterprises

RPG Enterprises

Going for Growth

8 Business Sectors, more than 16 companies, 40,000+ employees, 4,00,000 + shareholders

Presented by :Sonaksh i Narang

Contents

Foundation And Milestones Introduction RPG Group: Governance Structure Vision Group Code Company Separation Group Companies Snap Short of Group Companies RPG- A Corporate Citizen RPG Group :

Key Financials Market Cap Movement FY14 Revenue Breakup

Important News Road Ahead

Foundation and Milestones

RPG began in 1820 when Ramdutt Goenka from a small Town in Rajasthan, India, came to Calcutta on east coast to do business with British East India Company.

By the 1900s the Goenkas establish - diverse business sectors like banking, textiles, jute and tea.

Sir Hariram Goenka and Sir Badridas Goenka declared knighthood by the Queen of England for outstanding contribution to business and the community.

Sir Badridas Goenka In 1933,first Indian appointed as Chairman of the

Imperial Bank of India (now the State Bank of India) In 1945,elected as President of Federation of Indian

Chambers of Commerce and Industry (FICCI)


Keshav Prasad Goenka (son of Sir Badridas Goenka) carried the spirit of entrepreneurship forward. In 1950 - acquired two British trading houses -

Duncan Brothers and Octavius Steel. After successful acquisitions in the areas of tea,

automobile, tyre, jute, cotton textile and electric cables.

Keshav Prasad Goenka passes on his business empire to his three sons. One of the sons, Rama Prasad Goenka (better known

as RP Goenka), establishes RPG Enterprises in 1979 with Phillips Carbon Black, Asian Cables, Agarpara Jute and Murphy India as constituents.


The 80s see acquisitions by the RPG group The first being CEAT Tyres of India in 1981. Then goes on to acquire KEC (1982); Searle India, now RPG Life Sciences (1983); Dunlop (1984); Gramophone Company of India Ltd, now Saregama

India (1986); and finally CESC, Harrisons Malayalam, Spencer &

Co. and ICIM, all in 1989

Foundation and Milestones Ownership reorganization in 2010, resulting in two

separate groups : RPG Group & RP-Sanjiv Goenka Group

Introduction RPG Enterprises, established in 1979, is one of the India’s

fastest growing business groups with a turnover touching ₹ 18000 cr. As on today.

The group consists of over fifteen companies managing diverse business interests in the areas of Automotive Tyres, Infrastructure, IT, Pharmaceuticals, Plantations and Power Ancillaries.

Management The RPG Management Board comprises of highly qualified

professionals with significant expertise in various markets and are thought leaders.

40,000+ employees

4,00,000 + shareholders

Driven by passion for superior performance

Values RPG’s business ethics promote higher levels of

excellence. Group’s values of Customer Sovereignty, People

Orientation, Innovation & Entrepreneurship, Transparency & Integrity, Passion for Superior Performance, Anticipation, Speed and Flexibility propel it to perform and excel in all spheres of activity.

Quality At RPG, quality determines success. Continuous process improvements are carried out to

ensure complete satisfaction of customers and market requirements.

Introduction

Beyond Business The RPG Group believes that the role of a corporate

house extends beyond the narrow margins of the balance sheet.

It is this understanding that sees the group promote sport, art and culture.

Corporate Citizenship The Group firmly believes that Corporate Social

Responsibility is not just an added function to business.; it should be ingrained in core business operations.

CSR at RPG would cover workplace, community and environment. The social endeavors of the group have been categorized under the broad area of Education, Employability and Environment.

Introduction

Management Board Members (MBM) Members : Chairman, Sector Heads, Group HR & Group

Finance Purpose : Group level strategy decisions Company Board of

Directors

Company Board of Directors Members : Chairman, MD & Independent Directors who are

experts in various fields Purpose : Company specific strategy decisions, results

review & regulatory related aspects Business Review Board (BRB)

RPG Group : Governance Structure

Business Review Board (BRB) Members : Chairman, Group HR, Group Finance, CEO &

other Key Management Personnel of the companies Purpose : Strategic Planning, Annual Operating Plan &

Business Performance Review Centre Of Excellence (COE)

Centre Of Excellence (COE) Functional COEs for critical functions such as Finance, IT,

Manufacturing, Legal / Secretarial etc. Platform for Best practice sharing, leverage opportunities at

group level, any common agenda discussed incl knowledge sharing

RPG Group : Governance Structure

VisionWe shall be leading Indian group with a focus on market capitalization through:

Leadership in profitability and revenue growth in our chosen business

Being a customer - centric organization

Being the most exciting workplace

Group Code

• Code of Governance include various functional related aspects as well as Ethics for employees.

• Group Ethics Committee in place to oversee compliance with the Group’s standards and procedures.

• Recently introduced 3 key polices– CSR Policy– Whistle Blower Policy– Sexual Harassment at workplace Policy

Harsh and Sanjiv Goenka MUMBAI: Almost three decades after the original takeover tycoon, Rama

Prasad Goenka, began to build his business empire, RPG Enterprises is segregating ownership of various group companies between his two sons—Harsh and Sanjiv—to smoothen the passage of control to the next generation in one of India's oldest business families.

Top legal minds, group old timers and members of the RPG management committee are giving finishing touches to a new holding structure that would determine the key investment companies that each brother will own. These investment companies, most of which are incorporated in Kolkata—the city that has been patriarch and the group's chairman emeritus, RP Goenka's, home for many decades—are the promoter entities holding equity stakes in different companies of the Rs 17,000-crore RPG Enterprises.

RPG goes GeNext, Harsh & Sanjiv to own separate companies

Group Companies

Snapshot of Group Companies

CEAT


CEAT

• India’s leading tyre company with over 50 yrs of presence

• #No 1 player in Sri Lanka in terms of market share • Leading Exporter with exports to over 110+ countries • 4600+ Employees • Distribution Network : 3500+ dealers, 300+ exclusive

CEAT franchisees • 3 Manufacturing plants - Mumbai, Nasik & Halol • 10 Million+ Tyres produced annually


CEAT

Among the earliest tyre manufacturing companies in India, started commercial production in 1960

Manufactures the complete range of tyres, from motorcycle and passenger car tyres to large Off The Road (OTR) tyres

14 Outsourcing partners including 4 overseas

Associated CEAT Kelani (Sri Lanka) a J.V is the largest tyre company in Sri Lanka


CEAT• Brand Investments• “Idiot Safe” campaign (for Bike Tyres)• “Superior Grip” campaign (for UVR Tyres)• Association with KBC – A popular TV game show• “Monsoon Smart” campaign (For All Season Bike Tyre

with “Superior Wet Grip”)• “Pakka Bharosa“ CEAT SUV Campaign


CEAT: Consolidated Financials


CEAT• “Strategic Focus Areas”

– Higher margin business– Contributes 48% sales compared to 33% in FY10– Growing at higher rate of 28% CAGR– Aspiration FY 17:

• 60% of sales & 80% of Operating profit by FY17


KEC International


KEC International • Leading global player providing

infrastructure project management solutions

• Services provided:• Power Transmission• Power Distribution• Rural Electrification• Telecom Infrastructure• Railway Infrastructure• Water Management

• Strong presence in South Asia, Middle East, Africa and Central Asia

• SAE Towers Holding LLC, a subsidiary of KEC

• Footprints in 45 countries• Currently executing in more than 25

countries


KEC International


KEC International


KEC International


KEC International


Harrisons Malayalam


Harrisons Malayalam• One of the most diversified agro-

based companies in India.

• Largest employer in Kerala outside of the government.

• Revenues generated Rs 332 Cr.

• Single largest grower of natural rubber in India with 11 rubber estates.

• Apart from being the largest producer of tea in South India, HML is also supposedly the largest producer of pineapples in India.


Harrisons Malayalam

• Spread over 20 Estates, 8 rubber factories and 12 tea factories.

• Production of about 11,000 MT Rubber, 18,000 MT Tea and 25,000 MT pineapple.

• Produces smaller quantities of areca nut, banana, cardamom, cocoa, coffee, coconut, pepper ,vanilla and organic tea and spices.


Harrisons Malayalam

• Strategy

• Tea ‐ Modernization of factories to exploit both export and domestic demand; re ‐ plantation to improve yield per hectare

• Rubber ‐ Extensive re ‐ plantation with most modern clones of high yielding potential; plan to produce ‘value added rubber’ using captive latex production


Zensar Technologies


Zensar Technologies• Zensar at a

Glance


Zensar Technologies

• It is among top 15 software services providers from India and has spread across twenty countries globally.

• Provides end-to-end services from IT development to Business Process Outsourcing, from consulting to implementation.

• Ranked amongst India’s top 20 software companies by NASSCOM.

• Developed tools and methodologies, which enables its clients with innovative business solutions and a rapid 'go-to-market' capability.


Zensar Technologies• Supports Fortune 500 clients with

software business solutions that help them compete in the digital economy.

• Recognized for its exceptional service capabilities and industry-leading solutions.

• Bagged prestigious awards in areas such as R&D, people practices, CSR programs and sustainability initiatives.

• Consistent financial performance – Zensar clocked 25.3 percent average revenue growth over the last five years.

• Operations• Zensar has close to 7000 associates

with sales and operations presence across USA, UK, Europe, Middle East, South Africa, Singapore, China, Australia and Japan.


Zensar Technologies

• Services• Zensar's industry expertise spans across

Manufacturing, Banking Financial Services and Insurance Retail, and Healthcare.

• The Company delivers comprehensive services in mission-critical applications, enterprise applications, infrastructure management, e-business, BPO and Knowledge Services.

• Our capability in infrastructure-oriented services ranges from remote infrastructure management to end user computing to data centre services and security and compliance.


Zensar Technologies• Zensar Business Overview


Zensar Technologies• Delivering Digital Transformation


Zensar Technologies• The Agenda for FY 15

• Consolidate on excellent growth and brand recognition in key markets – US, UK, Europe and Africa and establish customer forts in India, Middle East and Australia

• Complete the refocus on Services with dual shore engagements in the IM Business Unit and drive for higher profitability


Zensar Technologies• Strategic Objectives FY 17

• Partner of Choice in Chosen Verticals, Solutions and Technologies

• Continue to offer a balanced services portfolio across Custom Application Services, Enterprise Application Services and Infrastructure Services

• \Aim to be amongst the Top 10 Indian IT Services Providers


RPG Life Sciences Limited


RPG Life Sciences

A fully integrated Pharmaceutical Organization with Revenues of Rs 221 Cr

The company manufactures and markets a range of bulk drugs, formulations and biotechnology products.

Company operating in the domestic and international markets in the Branded Formulations, Global Generics, Synthetic and Fermentation APIs space.

The company is a research based, pharmaceutical company, producing a wide range of quality, affordable medicines.


RPG Life Sciences

Its brands are highly trusted by healthcare professionals and patients. Customer satisfaction is fundamental to the company.

The company intends focus on product innovation and development through continuous investment in R&D efforts.

R&D is a part of the company’ strategy and will be one of the key elements in providing a competitive edge.

It aims to be a key player in its chosen areas through world-class manufacturing, quality control and excellent services.


RPG Life Sciences

Pioneering expertise in the field of bio-pharmaceuticals

4 manufacturing sites

Producer of Niche products like Cyclosporine & Doxorubicin, Epirubicin etc

USFDA standard plant ready

New product launches in Oncology segments to drive bottom-line


RPG Life Sciences

• Strategy

• New Product Developments in both API and Formulations

• Geographical Expansion with increased Presence In the Regulated Markets

• Strengthen the Domestic Branded Generics Business

• Expansion of Manufacturing capacities


RPG Life Sciences• Performance snapshot

RPG- A Corporate Citizen

RPG Foundation has been set up to undertake activities in the field of social welfare and reform, across a wide range of areas including education, livelihood, health and environment While improving the quality and spread of education

continues to be a key challenge for the Government, the RPG Foundation is currently engaged in a major project, called the RPG Akshar Program, to propagate primary education in English across schools.

RPG Group believes the corporate sector too needs to step in to help make a difference in its own way

RPG- A Corporate Citizen The Group is also focused on employability and

livelihood and currently runs a successful livelihood and confidence building program across its multiple locations, called Saksham

It has conducted several health awareness camps across companies and locations

RPG Foundation is also a think tank engaged in research on macro-economic issues, mainly concerning the industry and the corporate sector

RPG Group believes the corporate sector too needs to step in to help make a difference in its own way

RPG Group : Key Financials

RPG Group : Market Cap movements

RPG Group :FY14 Revenue breakup

Important News:

The Road Ahead

Strategic Long Term Vision for individual business sectors

Positioned for high growth in coming years

Business Portfolio to reflect changing face of Indian economy

World class people practices to ensure talent management

Global cost competitiveness to ensure sustainable business model

The Road Ahead

CESC operating India's most efficient power plants

Exceptional track record of KEC International in world market

Continuous benchmarking by CEAT resulting in higher gains in operating efficiencies

PCBL aiming for 6th slot in world ranking

Group Website- www.rpggroup.com

RPG Sanjiv Goenka Group

6 Business Sectors, 15+ companies, 55,000+ employees, 3,00,000 + shareholders

Foundation And Milestones Introduction Core Leadership Vision Group Companies RP- Sanjiv Goenka Group Business Sector Snap Short of Group Companies RP Sanjiv Goenka Group :

Key Financials Financials of RP Sanjiv Goenka Group

Educational Initiatives RP Sanjiv Goenka Group- A Corporate Citizen Important News Road Ahead

Contents

Sanjiv Goenka took over as Chairman of the RP-Sanjiv Goenka Group in the summer of 2011.

CESC’s existing operations in the Group’s Power sector comprise generation and distribution of electricity to its 2.7 million customers across its licensed areas in Kolkata and Howrah, West Bengal.

A 2 x 300 MW coal fired thermal power project at Chandrapur in Maharashtra is being executed by Dhariwal Infrastructure Limited (DIL), a 100% subsidiary of CESC Infrastructure Limited. Construction work of the project is now in its advanced stages.

CESC has also started commercial production at its first Wind Power project in Dangri, Rajasthan. The 24 MW project was implemented during the later part of the financial year 2012-13 by Surya Vidyut Limited, which is a wholly owned subsidiary of CESC. The power from the project is being sold to State Discoms under two separate power purchase agreements.

Foundation And Milestones

In 2012, Spen Liq Private Limited, a wholly owned subsidiary of CESC, purchased a majority stake in Firstsource Solutions Limited (FSL), India’s fifth-largest BPO Company.

FSL has strength of around 31,000 people, spread across 47 delivery centres in India, the US, the UK, Ireland, Sri Lanka and the Philippines.

It serves over 100 global clients including 21 Fortune 500 companies and nine FTSE 100 companies.

Spencer’s Retail Limited now has 132 stores (including 26 hypermarkets) across India under the Spencer’s label.

Late Dr Rama Prasad Goenka, the 'Chairman Emeritus' of the RP-Sanjiv Goenka Group, as well as the Chairman of CESC Ltd, passed away in April 2013. Sanjiv Goenka took over as the Chairman of CESC Ltd after his father’s demise.

Foundation And Milestones

• The RP-Sanjiv Goenka Group is India’s youngest business Group born in 1820.

• The Group has interests across diverse business sectors -Power & Natural Resources , Carbon Black, IT & Education, Retail, Media & Entertainment and Infrastructure.

• With asse ts of over INR 23,250 Cr and employee strength of more than 50,000, the Group is well set to launch itself into the next league.

• Over the next five years the Group is expected to invest more than USD 3 billion across its various business projects.

Introduction

Core Leadership

VISIONInclusive Growth fired by free-spirited

Entrepreneurship

CORE VALUES

Customer HappinessBring a smile on the face of your customer

CredibilityInstill trust and confidence with your actions

HumanenessBe caring and respectful to all

VISIONInclusive Growth fired by free-spirited

Entrepreneurship

CORE VALUES

Execution ExcellencePut your heart and soul into your actions

SpeedMove ahead of time

Risk – TakingDare to go beyond

The Group Companies

RP- Sanjiv Goenka Group Business Sector

Snapshot of Sanjiv Goenka Group• CESC

• 4th largest private sector power utility company in India

• Distributing power to city of Kolkata & adjoining areas

• Fully integrated business model– Coal Mining, Generation,

Distribution

• 1225 MW Generation, 567 sq.km. area, 2.7 mn consumers

• 80%+ energy requirement from own generation, meeting peak demand of 1900+ MW

Snapshot of Sanjiv Goenka Group• CESC

• Two thermal power projects under construction

• CESC has won the distribution franchisee for Ranchi, Jharkhand via a competitive bidding

• 24 MW wind project commissioned in FY`13 in Rajasthan

• Organized retailing via Spencer's Retail Ltd

• Acquired Firstsource Solutions in FY`13 from ICICI

600 MW Chandrapur TPP, Maharashtra

First Independent Power Plant (IPP) of CESC

Being set up in Chandrapur, near Nagpur with 2x300 MW configuration

Project cost of Rs. 3500 crs funded at 75:25 debt equity ratio

Coal linkage available from CIL

BTG supplied by Shanghai Electric , China

600 MW Chandrapur TPP, Maharashtra

BoP undertaken by Punj Lloyd

Long Term PPA for 100 MW signed with TANGEDCO

First unit (300 MW) commissioned on 11th February 2014.

Second unit (300 MW) to be commissioned in Q1 FY 2014-15

600 MW Haldia TPP, West Bengal

• To meet the growing need of its consumers, CESC is setting up a 600MW (2x300) TPP in Haldia, near Kolkata

• Fully regulated project approved by WBERC

• Project include 80kms long 400 kV Transmission line from Haldia to CESC network

600 MW Haldia TPP, West Bengal• Project cost of Rs.4000 crs

+funded at 75:25 debt equity ratio

• Coal linkage available from CIL

• BTG supplied by Shanghai Electric, China

• BoP undertaken by Punj Lloyd

• Project to be commissioned in 2014-15

Noida Power Company• JV with Greater Noida Industrial

Development Authority, started its operations in1993.

• Distributing Power in Greater Noida in UP, which is fast developing as an industrial hub and urban settlements.

• Caters to a population of 7lacs spanning over 335sq.km

• Demand growing at over 20%

Noida Power Company• Current demand over

225MW(65%industrial)

• One of the lowest T&D loss in the country at 8%

• Aggressively pursuing 400MW gas based power plant in Greater Noida

• Award from the Hon’ble President of India for meritorious performance

• Awarded Best Utility of the Year 2012

• Integrated Coal Mining

• Open Cast Mine in West Bengal

• Operations at Sarshatali Coal Mine since 2002

• Producing 3.1 MT p.a. coal meeting 50% of CESC’s coal requirement

• 1.5 MTPA coal washery commissioned to reduce ash content

• National Safety Award–2009 for “Lowest Injury Frequency Rate”

• Crescent Power Limited

• Operating a 40 MW Atmospheric Fluidized Bed Combustion (AFBC) based power plant at ICML Mine Pit Head

• Coal washery rejects, with Carbonaceous Shale, issued as a fuel

• 1x40 MW Steam Turbine Generator set

• Commercial Operations, from July 2009

• Average PLF for FY12-13 is 89%

Firstsource Solutions Ltd• Among the top 3 pure play BPO companies

in India

• Full range of business process management services across the customer life cycle delivered through transaction processing, CRM, collections and receivables mgmt.

• Multi-shore delivery model across four countries (India, US, UK and Philippines, Sri Lanka)with 48 delivery locations

• Client base includes 21 Fortune 500 and 9 FTSE 100 companies

• Employee base of over 32,000 employees

Firstsource Solutions Ltd

• Repaid fully outstanding foreign currency convertible bonds (FCCB) liability of $237 million met through cash reserve, equity infusion and additional borrowings

• CESC acquired 56.86% stake in FSL via a combination of preferential allotment in Nov 2012, stake purchase from existing shareholders and an open offer

• Started repayment of debt of US$ 11.25 mn per quarter over next 4 yrs from internal accruals

Phillips Carbon Black• Largest Producer of Carbon Black in

India and 7th largest in World

• Supplies to leading Tyre companies across globe

• Capacity of 4,72,000 MT p.a. across India

- Durgapur, Kochi, Baroda & Mundra

• Captive Power Plant at each location producing power from waste gas, current power capacity of 76 MW

Phillips Carbon Black• 12.5 MW Baroda CPP registered as

CDM project with UNFCCC

• Initiated capacity expansion program

• Orissa – Coal tar distillation

• Aiming for 3rd position in World Carbon Black ranking

Spencer's Retail Ltd• Rs 1400 crs food-first, multi-format

retailer since 1996

• Pioneered organized retail in India

• 130+ stores spread over 38 cities and about 1mn sq ft

• 14% same store sales growth in each of last 3 years

• Private label program across food, fashion, home and general merchandising.

• Targeting growth in big box format

Spencer's Retail Ltd• Planning to roll out 80 Hypermarket

stores over next four years

• Ranked 2nd in India’s most respected companies in Retail in a study conducted by Business World in 2013

• Won the ‘Most Admired Hypermarket Retailer of the Year Award’’ at the India Retail Forum in September 2013

Au Bon Pain• Au Bon Pain is a is a fast casual dining

concept founded in Boston in 1978 by the late Louis Kane and has over 280 cafes across the world

• RP-SG group is the master franchisee of Au Bon Pain, USA in India

• Started in 2009, Au Bon Pain Café India Limited has 29 cafes in Bengaluru and 2 in Kolkata

Au Bon Pain• Cafes spread across High Street &

Malls, Business & IT Parks, Hospitals and Universities

• Au Bon Pain offers a wide range of menu choices for all day parts consisting of scrumptious sandwiches, palatable soups, salads, delectable baked goods, beverages, cakes and desserts

• Strong roll out plan in 2013-14 incl expansion in Kolkata

Saregama India and OPEN Magazine

• India’s largest and most reputed music company with an archive of over 300,000 tracks

• Associated with the development of Indian music from the time the first recording was made in India in 1902

• Foothold in International Educational Home Video (Discovery Channel), Films, TV Software, Events etc.

Saregama India and OPEN Magazine

• Acquired 10% stake in Timbre Media to launch World- Space branded Radio services in Digital format

• Leveraging technology to become a destination entertainment company

• Forayed into Publication business, with the launch of weekly magazine, ‘Open’ in April 2009

RP Sanjiv Goenka Group : Key Financials

Financials of RP Sanjiv Goenka Group

Education Initiatives• Set up India’s first corporate

sponsored Business School, “International Management Institute, Delhi”, in collaboration with IMI, Geneva (now IMD, Lausanne)

• IMI today operates three institutes in New Delhi, Kolkata and Bhubaneswar, offering courses in post graduate management education and research

• A strong alumni base of over 4000, outstanding faculty and research affiliation with over 21 international universities and business schools

• CESC and Singapore Power jointly launched Asia Institute of Power Management (AIPM) to train and develop power sector personnel

A socially Responsible Corporate Citizen

• Focus on adoption of initiatives resulting into GHG reduction and transformation into a low carbon business practices

• Five GHG mitigation initiatives registered as CDM projects with UNFCCC (3 in CESC, 1 in ICML and 1 in PCBL)

• A low carbon growth being undertaken to prepare for future challenges

A socially Responsible Corporate Citizen

• Running Woodlands Multispecialty Hospital Ltd, a state-of-the-art hospital in Kolkata

• CESC gifted to the city of Kolkata, a musical ‘Fountain of Joy’, to commemorate the city’s tercentenary celebrations

In the news

Glimpses of recent media coverage…

Interview with UTV BloombergInside India's Biggest Companies: RP-Sanjiv

Goenka Group

Awards and Recognition

Mr Sanjiv Goenka, Chairman of RP-Sanjiv Goenka Group was conferred with the Indian Business Leader of the Year Award at the Global India Business Conference in Belfast, Northern Ireland in June 2013. Fortune India magazine May 2013

Road Ahead

• Strategic Long Term Vision for individual business sectors

• Positioned for high growth in coming years

• Business Portfolio to reflect changing face of Indian economy

• World class people practices to ensure talent management

• Global cost competitiveness to ensure sustainable business model