Sanjiv Goenka has plans to ramp up expansion of the chemicals and carbon black business and target a group market capitalisation of Rs 2 lakh crore over the next 30 months.
In conversation with CNBC-TV18's Shereen Bhan, RP-Sanjiv Goenka Group's Sanjiv Goenka shared capex plans of his diversified business interests and said the group will spend about Rs 35,000 crore as capex over next 12-18 months, which will be scaled up to Rs 50,000 cr in the next three years.
"This is the period to invest significantly across our businesses in terms of capacity, R&D, growth", Sanjiv Goenka, founder and chairman of RP-Sanjiv Goenka Group said. "It going to be very high on growth and all our businesses will be expanding significantly, but the biggest one will be in the chemicals and carbon black sector," Goenka added.
On PCBL
One of the group companies, PCBL Limited is in the business of production of carbon black, and is India's largest & world's seventh largest carbon black company. Carbon black is used in many sectors but the demand is primarily driven by tyre and rubber industry. It is also extensively used in plastics and electrical applications, particularly in batteries.
The transition towards electric vehicles is expected to generate a fresh demand in the tyre segment, PCBL said in its 2023 annual report.
"We will grow in the rubber black business, and importantly in speciality blacks where margins are higher", Sanjiv Goenka said, adding that he sees the bottomline multiplying in the next five years. "We see a 5x growth in profit over five years from this level", he added.
The group is also aiming to enter the cathode chemistry business to cater to the rising demand for EV batteries.
On Firstsource
Sanjiv Goenka added that the PAT could grow by about 2-1/2 folds in next two years at Firstsource Solutions, as the company shifts to a higher margin businesses, and focuses on costs. "We are getting to growth rates that are attractive and we are very satisfied with what we have achieved", Goenka added.
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