RPSG Group’s chairman Sanjiv Goenka on Monday highlighted how India Inc. is waiting for the global uncertainty and market volatility to end for it to receive a “flurry of investments.”
Speaking on the first day of India Today Conclave East 2022 in special conversation with Business Today Executive Director Rahul Kanwal, Goenka added, “Investment plans have already been drawn up and once the uncertainties surrounding COVID-19 and the Russia-Ukraine war ends, there will be a huge rush of investments happening in the country.” Goenka was answering the question about India’s growth story and investment plans.”
Furthermore, on investments by RPSG, Goenka pointed out, “We are investing in IT, chemical and power businesses and across the board. But the emphasis will shift towards new-age businesses.”
On his insights about advice to entrepreneurs, Goenka emphasised on remaining “true to your vision.” He added, “Capital is there. So, if it’s a sensible idea, if it’s workable, you will get financing to carry on with your business and grow it to the next level. Just believe in your business and remain true to your vision.”
On investments in retail and FMCG business and competition with India’s other huge FMCG sector players, Goenka stressed, “We’ve been conscious, we have not taken any debts for our retail business, we are virtually debt-free.” He also stated that the company is growing in small amounts, chosen geographies, such as West Bengal, Uttar Pradesh, coastal Andhra Pradesh.
“We are focussing out growth on those cities where we don’t need to spend on back-end, it is just the spend in front-end. There is no additional investment in marketing, promotion or people… operating parameters are doing well but the bottom line is yet to turn positive.”
In all, on a question of how ready his company is to face the “big boys” of FMCG sector, including Reliance Industries, Goenka reiterated, “We have no desire or no intentions to become an another Future Group,” adding that the company’s FMCG business pioneered India’s guilt-free snacking into western snacks where it has created a market and are now getting into the space of personal care.
“Our products are products for a difference, it is in the mass premium segment. These are products which were generally in the past would have been reserved for the rice, but they are not made affordable.”
“These are businesses that we will grow and will grow very aggressively,” said Goenka.