Moneycontrol
May 17, 2017 07:30 PM IST | Source: PTI

CESC board may consider business restructuring plan tomorrow

CESC Ltd, the Rs 32,000 crore RP Sanjiv Goenka group flagship company may consider business restructuring plan at tomorrow's board meet.

CESC board may consider business restructuring plan tomorrow

CESC Ltd, the Rs 32,000 crore RP Sanjiv Goenka group flagship company may consider business restructuring plan at tomorrow's board meet.

CESC sources last month had indicated that a business restructuring plan might be taken up to unlock value.

A consultant had already submitted to the company its recommmendations on a business plan.

An exercise of clubbing its generation and distribution companies under two separate arms could be taken up.

Carving out it's retail subsidary - Spencer's is also not ruled out by the sources.

However, there was no official confirmation and neither did CESC chairman Sanjiv Goenka respond on the subject.

The CESC has distribution rights in Kolkata and owns part of generation units in West Bengal. The rest of the generation outfits and distribution franchises are managed by different wholly-owned subsidiaries.

The generation units at Haldia in Bengal and Chandrapur in Maharashtra are two separate outfits - Haldia Energy Ltd and Dhariwal Infrastructure Ltd, both subsidiaries of CESC.

The group entered distribution franchise business through different special purpose vehicles.
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