KOLKATA: That India Inc has gained from a split in the assets of business families is now well documented.
It has happened with the Ambani brothers as both Mukesh Ambani's Reliance IndustriesBSE 0.26 % and Anil Ambani-controlledReliance ADAG grew exponentially since their split eight years ago. The story was similar for the OP Jindal Group as well which has grown manifold after the split over 14 years ago. The same trend is now visible in the empire of the Goenkas as both brothers—Harsh and Sanjiv—seem to have prospered following the division of the RPG group.
The two sons of "takeover tycoon" Rama Prasad Goenka, the founder of RPG Enterprises, parted ways in 2010. Elder brother Harsh Goenka retained the identity ofRPG Enterprises while younger brother Sanjiv rechristened his portion of the business as RP-Sanjiv Goenka Group. Now after three years of separation, both the groups have grown substantially even at a time when the economy has slowed down. RP-Sanjiv Goenka Group has doubled its revenue and assets during this period while RPG Enterprises under Harsh Goenka witnessed a 22% CAGR.
TOI spoke to both Harsh and Sanjiv on the issue a few days ago. Sanjiv Goenka told TOI that the gross revenue of his group has more than doubled from Rs 6,593 crore in 2010-11 to Rs 13,821 crore in 2012-13 . Similarly, the asset base has grown from Rs 12,042 crore to Rs 23,250 crore. RP-Sanjiv Goenka Group has presence in segments like power & natural resources, carbon black, retail, media & entertainment , infrastructure, tea and technology. It has 12 group companies which include CESCBSE 1.35 %, Spencer's , Saregama, PCBL,FirstsourceBSE 0.84 % , Noida Power Corporation, Music World and Harrisons MalayalamBSE 1.74 % .
Sanjiv Goenka said that profit before tax (PBT) at the group level has also doubled in three years from Rs 381 crore to Rs 810 crore. "We have not only expanded but we did that with a healthy bottom line," he said. Sanjiv argued that this was possible because of the unlocking of value and expansion in the right areas. "We have also invested over Rs 11,000 crore in last three years in power, carbon black and retail. The group entered IT by acquiring Firstsource at a time when there was hardly any M&A (merger and acquisition) in the market," he added.
