CESC to invest Rs 1000 cr in power distribution in current fiscal

Acquires 70 % stake in Gujarat-based snack making co, to set up production facility
Report by: 
EOI CORRESPONDENT
Kolkata
28 Jul 2017

Power utility major CESC Limited will invest Rs 1,000 cr in its distribution business across the country in the next one year, company chairman Sanjiv Goenka said today.  At a press conference held after the annual general meeting of the company, Goenka said: "We will be investing around Rs 1,000 crore in our distribution business in different parts of the country, which includes a sum of around 600 crore in Kolkata". He also said that the company will be aggressive in increasing its distribution business and hinted that new opportunities may come up in the state of Uttar Pradesh. "At present we are looking at Uttar Pradesh, where under the leadership of Yogi Adityanath, we expect transparency in the business and industrial operations.
Goenka also announced that CESC's FMCG vehicle Guiltfree Industries Ltd has completed its first acquisition in the state of Gujarat. "Guiltfree has acquired 70 per cent stake in Rajkot-based snack manufacturing company Apricot Foods Ltd. The company is doing phenomenally well there and has got an annual turnover of Rs 22 crore", he stated. Displaying a range of Apricot Ltd's entry level products which are sold under the brand name 'e-vita', the CESC chairman said: "At present Apricot LTd's busines is based only in Guujarat and its outskirts but our aim is topromote the brand nationally. Goenka said, in spite of taking over the brand, Guiltfree LTD will retain the brand name e-vita for the entry level products. Goenka also said that Guiltfree Ltd will set up its own production facility by March 2018 and work for selecting a plot is already on. "We have seen a few spots in Rajasthan, UP, Telangana, Uttaranchal and West Bengal and will finalise one from that". Guiltfree Ltd which now comes under CESC Ventures, plans to invest Rs 150 cr in the FMCG business in near future, he added.
Asked to comment on the company's future plans in renewable energy sector, Goenka said "We will continue to maintain a cautious approach about that sector and there is no investment plans right now".  Giving details of CESC consolidated operations in Rajasthan, which are provided by distribution franchisees in Kota, Bharatpur and Bikaner, Goenka said that revenue has reached to Rs 1300 crore and now the units are serving 4,00,000 lakh customers across an area of 381 kms with a power production of 371 mw.