Private power generation and distribution company CESC Ltd has appointed Boston Consulting Group to explore and advise verticals of power sector for the RP-Sanjiv Goenka group’s flagship company to concentrate on.
“We have just appointed BCG to carry out a study to set a roadmap. We cannot be into everywhere (fossil and non-fossil form of energy) and this study will help us to identify the segment CESC should be into for the next stage of growth tragectory of the company,” company chairman Sanjiv Goenka said after the AGM here today.
He said all areas like thermal, solar, hydel and distribution have prospects.
“We are doing well but the study will validate the management’s thinking on strategy for the intregated power major for the next five to seven years. The report can be expected in the next six months,” Goenka said.
He hinted that with the change of government at the Centre there was possibility for more privatisation in power distribution through franchisee route and company may turn more aggressive in this segment.
Asked whether problems and concerns in thermal power sector was the reason behind exploring of other avenues, Goenka denied it and said that the new government was attempting to deal with the hurdles with ‘solution’ based ideas.
Apart from advising on verticals, BCG will also advise CESC to become the preferred power supplier for its customers despite being the monolpoly utility in Kolkata and Howrah districts of West Bengal.
Meanwhile, CESC reported 15 per cent jump in net profit during Q1 period ended June 2014 at Rs 151 crore against Rs 131 crore registered in the same quarter last year.
Goenka said 600 MW from its subsidiary Haldia Energy Ltd will commence by March 2015. Out of this 300 MW will be available by October this year.
Retail Spencer’s continue to remain a drag on CESC but was close to become EBITA positive.
“We are just short of Rs 18 per sq feet to become EBITA positive. We expect this to become soon. We will also add three lakh sq feet of space this year over and above 10.5 lakh it opearates from currently,” Goenka said.