Power utility CESC Ltd infused around Rs 1,000 crore equity in its various subsidiaries last fiscal, according to the company’s annual report, released Thursday.
It invested around Rs 560 crore by subscribing to new shares of CESC Infrastructure worth Rs 362 crore, CESC Properties (Rs 45 crore), Spencer’s Retail (Rs 111.57 crore) Surya Vidyut (Rs 40 crore) and Ranchi Power Distribution Co Pvt Ltd (Rs 1 crore).
The subsidiaries are undertaking diverse projects, including thermal energy generation, power distribution, retail, malls and unconventional energy.
The investments, however, exclude the business acquisitions made during the year, such as BPO player Firstsource and the hydro-power projects of Indiabulls.
CESC Infrastructure is a holding company for CESC’s new thermal power projects like Dhariwal Infrastructure Ltd, which is executing the 600 mw plant at Chandrapur, and for Haldia Energy Ltd, which is developing the 600 mw project at Haldia. Work on both these project is in full swing, the report said.
“Over the next decade, the group’s power business expects to add 7,000 mw to its total generation capacity. Several of these projects will be carried out by subsidiaries and also include the company’s foray into alternative and renewable fuel sources,” the report said.
In renewable energy, wholly owned subsidiary Surya Vidyut set up a 24 mw wind power project at Dangri in Rajasthan last fiscal.
On the other hand, Spencer’s Retail completed the final phase of closing down unprofitable stores in the smaller format during the year.
“The full benefits of this will accrue in 2013-14. The year will also see the company rolling out new stores in hypermarket format, which will allow it to consolidate its presence in its existing clusters,” the report said.
In its newest business, CESC has been selected after competitive bidding to provide distribution franchising through Ranchi Power Distribution Co, which will operate, maintain and make capital investment in the city’s distribution system, including metering and billing.
To be sure, CESC had 12 subsidiaries at the beginning of the year – Spencer’s Retail, Au Bon Pain Cafe India, Music World Retail, Surya Vidyut, CESC Infrastructure, Haldia Energy, Dhariwal Infrastructure, CESC Properties, Metromark Green Commodities, Nalanda Power Co, CESC Projects and Bantal Singapore Pte. It added another 17 during the year – Firstsource Solutions and its 12 subsidiaries, and their holding company Spen Liq Pvt Ltd, all of which it acquired in October, besides two hydel projects of Indiabulls, acquired in May, and Ranchi Power.
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