After IPL team, Sanjiv Goenka looks at more acquisitions

Group eyeing media, retail and technology

The next one month will be busy for Sanjiv Goenka as he enters the final leg of negotiations for three acquisition deals in the media, retail and technology sectors.

"There are three acquisitions, three different deals we are looking at. All three we hope will happen in January. But, until you've signed a deal, it's not done," is all Goenka is willing to reveal. In technology, the acquisition will be from the Firstsource stable.

"Dialogue is on for an acquisition by Firstsource, we hope it will happen in January," he said. Firstsource was the RP-Sanjiv Goenka group's latest acquisition, in 2012, from ICICI Bank.

Earlier in the year, Goenka had said a few deals were under evaluation by the company. Goenka did want to say much about the other acquisitions except that the media acquisition target had a bouquet of offerings. The digital platform is what Goenka is excited about but whether that is what he is eyeing is not clear. "The biggest thing will be the digital platform," he said.

In 2012, Goenka was in negotiations to acquire a stake in the Aroon Purie-controlled Living Media, the holding company and 57 per cent owner of TV Today Network that controls channels like Aaj Tak and Headlines Today, and the magazine India Today. Finally, however, the Aditya Birla Group clinched the deal.

Growth in the group will be a mix of organic and inorganic routes. Diversification will also play a key role.

For instance, the group is venturing into real estate development in a major way. "We will be building in Haldia, it will be a retail and residential project," said Goenka. This will mark the group's foray in the residential space.

"We will be monetising real estate properties within the group," he explained. A year ago, Goenka launched the Quest Mall, positioned as a luxury retail property. The project was developed by CESC Properties, a 100 per cent subsidiary of the power utility.

"We are about to sign a deal for another property that could be used for commercial or retail in central Kolkata. It will happen over the next few days," Goenka said.

The group of late has started to ramp up its brand image through presence in sports through Atletico De Kolkata in the Indian Super League and the Pune franchise in the Indian Premier League (IPL).

"Media blitz" is what Goenka terms it as. Also supermarket chain Spencers' imminent entry into e-commerce and a possible IPO is in the offing.

Currently, assets under the RP-Sanjiv Goenka group add up to Rs 32,000 crore. At the time of the family settlement with brother Harsh in 2011, Sanjiv had indicated that in seven years, assets of the RP-Sanjiv Goenka group would grow to Rs 50,000 crore.

"We moved from Rs 8,000 crore to Rs 32,000 crore. So we should do Rs 50,000 crore," he said. Profits currently at Rs 1,000 crore are expected to increase 2.5 times in the next three to four years.