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RP-Sanjiv Goenka Group to Invest ₹50,000 Cr Capex Over Next Three Years

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Synopsis:

RP-Sanjiv Goenka Group will invest over ₹50,000 crore in the next three years, focusing on chemicals and carbon black sectors. Targeting a market cap of ₹2 lakh crore, PCBL's margins may rise to 17-18%, with profits projected at ₹2,400-2,500 crore.

Cyient DLM News Today

RP-Sanjiv Goenka Group chairman, Sanjiv Goenka, revealed the group's ambitious plan to invest over ₹50,000 crore in the next three years, in a report published by CNBC-TV18. This significant capital expenditure (capex) aims to drive growth across all business segments, with a notable focus on the chemicals and carbon black sectors.

Major Capex Initiatives

Over the next 12-18 months, the group plans to allocate ₹35,000 crore for capex. Goenka emphasised that this period marks a phase of substantial investment across various businesses, enhancing capacities and fostering growth.

He highlighted that the last few years were focused on consolidation and development, and now the group is poised for significant expansion. As a result, RP-Sanjiv Goenka Group’s PCBL share price will remain in focus.

Focus on Chemicals and Carbon Black

The chemicals and carbon black sectors are expected to see the most substantial growth. Philips Carbon Black Ltd (PCBL), the largest producer of carbon black in India, is projected to experience margin growth from the current 16% to 17-18%.

Additionally, PCBL’s profits are anticipated to reach ₹2,400-2,500 crore over the next five years. The chemical business is set to expand through the acquisition of Aquafarm, further strengthening the group's market position.

Market Capitalisation Goals

The RP-Sanjiv Goenka Group is also targeting a significant increase in market capitalisation, aiming to reach ₹2 lakh crore in the next 30 months. Currently, the group's market cap stands at ₹70,000 crore.

Stock Performance

On Monday, PCBL’s share price closed at ₹300, reflecting a 3.11% increase. Over the past year, the stock has delivered an impressive 90.05% return, nearly doubling investors' money. This robust performance underscores the positive market sentiment and the growth potential of the company's strategic investments.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing. This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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