Apart from setting up own facilities, Goenka is eyeing acquisition of companies having manufacturing facilities, distribution network, logistics and also brands
Sanjiv Goenka is looking at acquiring companies in the FMCG space, which he has just entered.
Housed under Guiltfree Industries, with investments by Goenka in its personal capacity, there is ambitious plan to pump in close to Rs 10,000 crore in the next five years.
Apart from setting up own facilities, Goenka is eyeing acquisition of companies having manufacturing facilities, distribution network, logistics and also brands.
The company plans to go pan-India with FMCG products like snack foods, juices, dairy products and also products in healthcare and personal care space.
"We are in active talks with multiple companies – national and regional players for product, infrastructure, distribution and brands. Our FMCG foray has begun with the launch of two snacks while ten other products are in development stage. We plan to grow organically as well," Goenka said at the launch of 'Too Yumm' brand of snacks made of Foxnuts' and 'Wheat Thins'.
Goenka has big plans for his FMCG business, under Guiltfree Industries, with own private labels in apparels and foods sold within Spencer's Retail outlets. The business is not under Spencer's.
"In the near term our investments would depend upon to what extent we are successful in acquiring distribution infrastructure and logistics and brands. In five years we plan to pump in Rs 10,000 crore in the business," Goenka said.
The products are being launched in Kolkata, Delhi and Pune through a network of close to 20,000 retail points, and in a year's time Guiltfree aims to reach out to 40 cities through 1 lakh outlets.
The group's decision to enter FMCG business stems from an earlier advice by consultancy major McKinsey to get into new businesses including BPO, real estate and FMCG.
"Since then we have been working on getting into FMCG. The sector is broad and we had a team working on it – the what, how and where. We strengthened that over the last few months," Goenka said.
The FMCG business is being looked after by Goenka's son Sashwat and also CEO of the group Suhail Sameer, roped in from McKinsey in September last.
Monday's announcement regarding FMCG foray would be followed up by disclosure about a major restructuring of the group likely to happen in May-end about breaking up flagship CESC into power generation, distribution and retail under Spencer's which operates as a subsidiary.
"The restructuring is likely to be announced by May-end when we would be coming out with the first quarter result of CESC. We have asked market regulator Sebi whether we can the announcement is such a way," Goenka said.
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 "Sanjiv Goenka")
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