More than a coal miner: Rebranded Coal India to embrace new identity

Coal India Limited (CIL), the national miner of India and the world’s second-largest coal mining company, has undertaken a rebranding exercise, which involves a change in name. As one of the oldest public-sector companies, CIL aims to align itself with the country’s energy transition road map and expand its business operations.
 

Sources reveal that the Ministry of Coal and the company have decided to rename CIL as CIL Energy India to reflect the company’s future business plans beyond coal mining.
 

“CIL is planning to venture into critical mineral mining, coal gasification, carbon capture, green hydrogen, and renewable energy. To secure its future, it’s crucial for the brand identity to encompass more than just coal,” says a senior official.
 

Ministry sources indicate that the rebranding exercise and name change are currently under consideration, and the CIL board will soon make a decision. Officials emphasise that the company intends to align its future business plans with the country’s energy transition action plan. Despite setting a net-zero target for 2070, India has not specified an expiration date for coal usage.
 

In a recent G20 Energy Transition Ministerial meeting held under India’s Presidency, the participating nations did not reach a consensus on phasing out unabated fossil fuels.

Instead, they discussed approaches for managing emissions from the fossil fuel sector.
 

“Therefore, while coal remains at the core, CIL needs to strategise for the future. To venture into these new segments, the company requires financing. Foreign green funding will not come to a company solely involved in fossil fuels,” says a senior official.
 

Globally, only Australian mining giant BHP underwent a name change to align with its energy transition goals. In 2017, the world’s largest miner launched a $10 million campaign with the new slogan ‘Think Big’ and dropped Billiton from its name.
 

Similarly, in India, NTPC rebranded itself and shed its former name National Thermal Power Corporation when it started investing in green energy sources. It even established a separate company, NTPC Green Energy, to focus on new and renewable energy.

Several other companies like PFC, REC, and SJVN have also shortened their names to showcase a broader business scope beyond their core sectors.
 

However, some remain sceptical. Partha Bhattacharya, former chairman of CIL, suggests that while it’s important to ensure the company’s longevity beyond coal, its current focus should be on coal production.

“In the current scenario of high coal demand, CIL should concentrate on enhancing coal production. After experiencing years of shortage, CIL is currently on a high production streak, and it should continue,” says Bhattacharya.

As regards expansion into new sectors, Bhattacharya believes that CIL should first strengthen its position, even as other captive and commercial miners have entered the space.

“One area where CIL can diversify and achieve self-sufficiency is metallurgical coal. A thermal coal shortage is unlikely to recur. Thus, CIL should strategically invest in metallurgical coal assets globally, utilise its core competence, and build a supply chain for it,” he adds.

Among the new sectors CIL has already entered are solar equipment manufacturing and coal gasification.

 PSU behemoth 

• CIL was formed in 1975 as a result of nationalisation and subsequent merger of various coal mining firms
• Made a spectacular market debut in 2010, raising over Rs.15,000 crore in the largest IPO of the time
• Planning to venture into newer segments like solar manufacturing and coal gasification, besides widening its business verticals