RPG’s succession plans

Diversified business conglomerate RPG Enterprises is realigning shareholding patterns

across group companies. The process of segregating the group’s control between Ram Prasad Goenka’s two sons — Harsh and Sanjiv — will be completed by this December. The process involves segregation of ownership of 16 companies with a combined turnover of Rs 16,000 crores. Managing diverse business interests in the areas of power, tyre, infrastructure, information technology, retail and entertainment headquartered across Mumbai and Kolkata. Ten of these companies are listed on bourses that command a combined market capitalization of Rs 9,932 crores.

The two brothers have been managing the company since the early 1990s. The succession process in the three-decade-old group, which has a business legacy of nearly two centuries, will perhaps mark one of the smoothest ownership and control transfers in India’s corporate history. Under the succession plan Harsh Goenka (52) will continue as the chairman of the group and Sanjiv Goenka (49) as the vice-chairman. Harsh Goenka manages flagship companies such as KEC International and Ceat. Sanjiv Goenka manages CESC and the retail arm Spencer’s Retail along with other companies.