CESC Ltd. is India’s first fully integrated electrical utility company engaged in the generation and distribution of electricity. The company’s operation is spanning the entire value chain: right from mining coal generating power distribution of power. They serve 2.4 million customers which include domestic, industrial and commercial users within 567 square kilometres of Kolkata and Howrah delivering safe cost-effective and reliable energy to their consumers. CESC Ltd enjoys a market cap of Rs 11,976.36.
Division of Business segments
Business Segment 1: Power Generation
CESC Generation Ltd. will house all power generation projects being 2550 MW company. So, post-merger following will be the scenario for Generations business:
Haldia Energy Limited’s name will change to CESC Generation Ltd, followed by its listing on stock exchange and it will solely focus on Generation business, Dhariwal Infrastructure Ltd and Crescent Power Ltd will come under generations business, plus three generations stations such as:
- Budge Budge Generating Station (BBGS) (750 MW)
- Southern Generating Station (SGS) (135 MW)
- Titagarh Generating Station (240 MW).
From these three generating stations, CESC accomplishes 88% of their customer’s electricity requirement and remaining 12% is achieved by purchase of electricity from third parties. More than 50% of coal is sourced from captive mines for generation of electricity in their generating stations. In order to meet the requirement of their electricity CESC have installed two thermal power plants which are: 600 MW Haldia TPP; 600 MW Chandrapur TPP; and others such as 40 MW rejects based power plant; around 190 MW renewable energy portfolio.
Business Segment 2: Power Distribution
CESC Ltd. will house all the power distributions business and it will have under its banner, Noida Power Company Limited; Bikaner Electricity Supply Limited; Bharatpur Electricity Services Ltd; Kota Electricity Distribution Limited. They also own & operate the Transmission & Distribution System through which they supply electricity to consumers. This system comprises of 474 km circuit of transmission lines linking the company’s generating & receiving stations with 105 distribution stations, 8,211 circuit km of HT lines further linking distribution stations with LT substations, large industrial consumers and 12,269 circuit km of LT lines connecting the LT substations to LT consumers.
Business Segment 3: Retail
Retail business which is engaged in organized retailing and new company Spencer’s Retail will house all the business related to retail. Hence post-merger the scenario will be as RP-SG Retail Ltd’s name will change to Spencer’s Retail and it will be listed on stock exchange post-merger. This will solely focus on retail business. There will be online companies under Spencer’s Retail. Key features will be PAN India Organized Retail player with 1 mn+ sqft area and 124 stores spread over 35+ cities.
Business Segment 4: BPO
This segment comprises of Property, IT undertaking, FMCG business, and this will be housed by new company CESC Ventures. Post-merger the name ‘RP-SG Business Process Sources Ltd’ will change to CESC Ventures and it will be listed on stock exchange post-merger. It will focus on BPM (Business Process Management) and Other Businesses. It will comprise of Firstsource Solutions which is already a listed company with a market cap of Rs 2,335 Crores and currently trading at Rs 35.10. It is a Business Process Management (BPM) company in India. Quest Properties, its key feature includes “Quest” shopping Mall in Kolkata with 4,15,000 sq.ft. retail area. Guiltfree Indus. Ltd and Others. FMCG Business and all the businesses not related to power and retail.
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