CESC TO BE DEMERGED
KOLKATA: CESC Ltd has announced its scheme of business restructuring through a demerger of certain existing business which will lead to the creation of four separate entities focusing on generation, distribution, organized retail and other ventures.
The business restructuring aims at the simplification of the present corporate structure. The new four entities will be listed with the stock exchanges on October 1, Group Chairman Sanjiv Goenka told the reporters on Thursday. The restructuring scheme is however subject regulatory approvals.
“After the demerger, one company will house all the power generation which is now at 2550 MW while CESC Ltd will handle power distribution business at Kolkata, Noida, Bikaner, Kota and Bharatpur catering to about 35 lakh consumers,” Goenka said.
He further maintained by saying that the third entity will house Spencer's and retail while the CESC Ventures will house non-power and retail businesses including BPO, FMCG
Every shareholder of CESC will get shares of all these four companies. People will get same proportion of shares in each of the four companies. Spencer is doing a good business. FMCG has an overwhelming response in various cities including Calcutta.
When asked about the CESC Ltd's debt distribution issue Goenka said CESC Ltd's debts are very low. The debt that has been taken for distribution will go to the distribution company while the debt taken for generation will go to the generation company, he maintained. He also added there is no debt against Spenser.
He also said that the second power unit at Chandrapura has started operating and the supplying power to the Maharashtra state electricity board. Speaking further on power generation Goenka said that two thermal power stations are in operation in Haldia and Maharashtra each having a capacity of 600 MW.
CESC Ltd's net profit for the quarter stood at Rs 281 crore March 31 20017, as compared to Rs 277 crore in the previous quarter. The new profit of the company has also been increased. In 2016-17 the net profit was at Rs 824 crore against Rs 812 crore in the previous fiscal, Goenka said.