‘WE DON'T WANT TO BE IN THE DISCOUNTING GAME'

Sanjiv Goenka, Chairman of the RP-Sanjiv Goenka Group, talks about Saregama, Spencer’s, his other business verticals, and why he has no favourite among his diverse mix of businesses

- UDAYAN MUKHERJEE

For Kolkata-based Sanjiv Goenka, Chairman of the RP-Sanjiv Goenka Group, a business should throw up either cash flows or valuations to justify it being part of one’s portfolio. In an interview with Business Today’s Global Business Editor Udayan Mukherjee, he decodes what has worked for his businesses. Edited excerpts:

Q: Sanjiv, your group’s interests are so diverse—from old-age businesses like power, energy, carbon black, extending to a suite of new generation enterprises like FMCG, retail, entertainment, music and IT. How do you keep a handle on such disparate businesses without getting torn in too many directions?

A: Three points I would like to make, Udayan: one, all the businesses have critical mass and they lead in terms of operational efficiencies in the industries that they operate in. So, because of their efficiencies, each one of them has earned the right to grow. Two, we have very strong, and very capable management teams with each of the companies who pretty much run the day-to-day businesses on their own so they come to me by exception. Three, we have a very robust system of reporting so we have reviews which happen very frequently and the reviews are broken into two parts—one is the operations review and one is the review of the new initiatives. So if you know how to focus, you actually land up with time on your hands.

Q: You know parents like to say that all their children are equal but life teaches us that’s not exactly true. So, among all these children of yours, these businesses, are there some which are closer to your heart than others?