CESC company of the RP-Sanjiv Goenka Group (RPSG) supplies electricity to Kolkata & Howrah. It has decided to focus less on power generation and more on distribution which will drive the future growth of the RPSG.
From 2010, the company has invested Rs 8,000 crore in its power-generating capacity. The generation and distribution business contributes 56% of the group’s annual turnover of Rs. 17,260 crore as mentioned in a national news portal.
Media reports reveal that the group chairman Sanjiv Goenka is slowly going to reduce the flow of investment in power generation.
The company will continue to grow power distribution business as there was enough power-generation capacity across the country.
Power is expected to be in oversupply in the coming future and there can be some stagnation. However, distribution has a great opportunity, believes market observers.
The decision to focus on distribution could have been prompted by factors such as the group wants to focus on sectors that need less capital infusion & also it wants the minimal government or regulatory intervention, predicts the analysts.