“Spencer’s is already positive at the PBT level. However, the FMCG business will take sometime to hit the inflection point which is expected in March, 2020”, Sanjiv Goenka, chairman at the RP-Sanjiv Goenka Group said. He was responding to a shareholders’ enquiry at the AGM of CESC Ltd here.
The Group currently has two comapnies in its FMCG division - Guiltfree Industries, which makes various West Indian snacks under the Too Yumm brandname, and Apricot Foods, which the Group acquired last year. Apricot Foods operates in the mass consumption snacks market and sells its products under the eVita brandname.
Goenka has targeted a revenue of Rs 100 billion in the next five years from this FMCG vertical and is also on the lookout to enter new business categories including non-baked food products.
By July 2019, Too Yumm and eVita is expected to reach a turnover of Rs. 10 billion.
The Group’s FMCG venture, which currently operates under the aegis of CESC Ltd - the Group’s flag bearer, will be merged with CESC Ventures after the proposed demerger of the Group is effected.
Under this proposal, CESC Ltd will continue to operate its power business while Spencer’s will be floated as a new company. It’s business process division - FirstSource, realty arm - Quest and FMCG division will be merged to form CESC Ventures. The two new comapnies will be listed on the stock exchanges post its creation.
“Three stock exchanges need to give their clearences now”, Goenka said in response to a shakeholders’ enquiry on when the demerger will happen.
Bullish about the pace of electric car adoption, the Group is also looking at entering the business of charging points and stations for these cars in the coming days.