Emerging Titans | RPSG Group: First Ever Father-Son Interview, Unfolding The Goenka Legacy | ET Now

Summary

In this insightful interview, Dr. Sanjiv Goenka and Shashwat Goenka, Chairman and Vice Chairman of the RP-Sanjiv Goenka Group, discuss the group's diverse business ventures, including power, chemicals, retail, music, and sports. They delve into the group's recent stock performance, the benefits of blending experience with fresh perspectives, and their vision for the next 20 years. The conversation also covers the energy transition, the power sector's growth, and the group's ambitious renewable energy targets. Additionally, they address the retail business's challenges, the importance of local markets, and the group's strategic approach to the entertainment industry, emphasizing the potential of music and video content in driving future growth.

Takeaways

• 📈 The RP Sanjiv Goenka Group has seen stock growth of 50 to 100% in some companies over the last few months, reflecting a successful blend of experience and fresh energy.
• 🤝 Dr. Sanjiv Goenka and Shashwat Goenka, Chairman and Vice Chairman respectively, emphasize the importance of their partnership, with a dynamic of agreeing to disagree and merit-based decision-making.
• 🏢 Shashwat Goenka discusses the inherent pressure that comes with being part of the owner's family and the responsibility to grow the legacy.
• 🔑 Dr. Goenka highlights Shashwat's qualities such as being deeply analytical, methodical, and a deep thinker, which contribute significantly to the business.
• 🚀 The group is targeting exponential growth across all sectors with significant capital expenditure planned, aiming for intense growth in the next 5 years.
• ⚡ In the power sector, the group is well-positioned for the energy transition, with plans for substantial capacity addition in renewables and a focus on tariff reform and privatization.
• 🌿 The group has set an ambitious target of 10 GWatt in renewable energy, with a timeline starting from March 2026 and a strategy that includes hybrid projects.
• 🛒 The retail business has faced challenges, leading to a strategic decision to exit unprofitable regions and focus on profitable areas, aiming for a 50 basis point improvement in gross margin.
• 🎵 The group's media and entertainment arm, Saregama, is planning to be more aggressive in video content and music, with a focus on regional languages and potentially entering the pay OTT space.
• 🌐 The group is considering both organic and inorganic growth strategies, with a vision to expand beyond traditional business models and explore new opportunities in media and entertainment.

Q & A

What is the current focus of the RP-Sanjiv Goenka Group in terms of business growth?

The group is focusing on exponential growth across all verticals, including power, chemicals, entertainment, and IT-enabled services. They have committed significant capital expenditure to achieve this growth.

How does Shashwat Goenka feel about the pressure of continuing the family legacy?

Shashwat Goenka acknowledges the inherent pressure and responsibility that comes with continuing the family legacy, but he views it as a natural part of his role rather than an additional burden.

What qualities does Dr. Sanjiv Goenka appreciate in Shashwat Goenka's business acumen?

Dr. Goenka appreciates Shashwat's deep analytical skills, methodical approach, meticulousness, and ability to think deeply about business matters. He also notes Shashwat's growing confidence and decision-making abilities.

How does the power dynamics work between Dr. Sanjiv Goenka and Shashwat Goenka in their business decisions?

The power dynamics are based on meritocracy, where disagreements are resolved through discussion and persuasion. They agree to disagree and work through all permutations and combinations to reach a consensus.

What is the family's approach to balancing work and personal life?

The family has a system where they spend an hour together in the evening, discussing various topics ranging from work to personal life, ensuring a balance between their professional and personal lives.

What is the vision for the group's growth in the next 20 years?

While the specific vision for the next 20 years is primarily Shashwat's responsibility, the immediate focus for the next 5 years is on exponential growth across all sectors, with significant capital expenditure already committed.

How does the group plan to achieve its renewable energy target of 10 GW?

The group is initially targeting 3.2 GW, with progress made in both wind and solar projects. They have land acquisition underway in Rajasthan for solar and framework agreements for wind projects across four states.

What is the strategy for the retail business of the group, especially given the challenges it has faced?

The group plans to exit loss-making regions and focus on profitable geographies. They aim to improve gross margins, relook at cost structures, and expect to reach profitability within the current year.

How does the group view the potential of the e-commerce and quick commerce sectors for their retail business?

E-commerce is considered a significant part of their future plans, and they believe that traditional retail still dominates in India. They see a market for quick commerce but believe that grocery delivery does not necessarily need to be within 10-15 minutes.

What is the group's strategy for its music and video content business, Saregama?

The group plans to be more aggressive in the music and video content business, focusing on regional languages and looking at both organic and inorganic growth opportunities. They also anticipate the potential of music OTT channels turning pay.