Davos 2025: Simplifying taxes in Union Budget could boost consumption and investment, says RPG's Anant Goenka

As India gears up for the Union Budget, RPG Enterprises’ Vice Chairman Anant Goenka, has called for measures to simplify taxes and boost consumption. In an interaction with Moneycontrol at the World Economic Forum in Davos, Goenka emphasised that such reforms could enhance capacity utilisation, attract private investment, and further strengthen India’s economic momentum.

Goenka also shared the group’s strategy to leverage key economic trends, including the China + 1 shift towards India, a consistent focus on capital expenditure (CAPEX), and diversification across verticals.

“We are very well positioned to take advantage of this opportunity where people are moving away from China and looking at India as an option. Whether it is through joint ventures or bringing manufacturing into India, we as a group can capitalise on this great shift,” he said.

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RPG Group has sustained a steady CAPEX trajectory in recent years he added.

“Our CAPEX has been a continuous process over the past few years. For example, in Ceat, we’ve done continuous CAPEX of about Rs 1,000 crore a year to expand current facilities. Recently, we made an acquisition worth $200 million of Camso, a Sri Lanka-based brand, from Michelin tires. It’s a globally diversified asset with customers in the EU and the US,” Goenka said.

The group is also expanding into new verticals through its subsidiary KEC International.

“KEC is continuously expanding into new verticals. Initially a transmission-focused company, it has grown significantly in civil construction, railways, oil and gas, and renewables. These expansions involve substantial working capital deployment,” he noted.

Life sciences and IT services are other areas where RPG is seeking growth opportunities. “Life sciences is another area where we are actively looking to expand. We are exploring M&A opportunities in this space. Additionally, in IT services, we complete about two acquisitions a year, which is an ongoing part of our strategy,” said Goenka.

On funding these expansions, Goenka said that the group’s approach balances efficiency with financial prudence.

“The capital for our plans will primarily come through debt and internal accruals. We are focusing on running our businesses efficiently and capitalising on key tailwinds such as India’s growth story, manufacturing for the world, technology and AI integration, and climate change initiatives,” he added.

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