RPG Annual Investor Conference 2022:
The road ahead

Back in its in-person avatar, the Investor Conference served as the perfect opportunity to share RPG’s exciting new roadmap with the financial services and investor community

Now in its 10^th year, the RPG Investor Conference has gained considerable acclaim as a platform that connects the Group companies with members of India’s financial community to share milestones and plans, leading to a valuable exchange of ideas.

Over the years, the Conference has brought members of the investor community and heads of various RPG companies under one roof to share company-specific news and developments, capex plans, focus areas of growth and key policies and legislations that may impact the Group’s businesses. It also plays a vital role in assuring stakeholders about RPG’s robust governance framework, strong internal controls and financial prudence.

The 2022 RPG Investor Conference was held at the Sofitel Hotel in Mumbai on September 8. With an impressive turnout comprising delegates from top fund houses, brokerages, rating agencies, banks and mutual funds, this year’s attendee count was well over 230.

In his keynote address, RPG Chairman Harsh Goenka covered the adverse effects felt across the global economy due to the ongoing Russia-Ukraine conflict, including sharp changes in currencies and commodities, and disruption in global supply chains. He highlighted the resourcefulness demonstrated by India during the pandemic, especially in terms of the Covid-19 vaccine rollout and the widespread and accelerated adoption of digital services.

Mr Goenka shared how RPG companies witnessed reasonable top line growth over the past financial year, explaining that profitability declined due to global macro uncertainties, especially commodity prices and supply-side challenges.

With the necessary building blocks around capabilities, capacity, people and technology now firmly in place at each of the Group’s businesses, he shared that RPG is undertaking a strategy refresh to evaluate its priorities going forward. This will be a continuous process to ensure that the Group and its companies stay agile and responsive to global dynamics and shifts.

On the progress made in digital adoption, Mr Goenka said that RPG was one of the early Indian conglomerates to embark on a journey of digitalisation. During the past few years, several industry-first technology solutions have been implemented at the Group’s companies. These include drones, IoT, AI, Machine Learning and Blockchain, among others.

The Group has also been successful in leveraging technology to deliver both efficiency and profit & loss impact across its businesses and functions. For example, KEC invested in developing cutting-edge digital and automation tools to enhance its design competencies and develop world-class engineering capabilities, while CEAT has been working on smart factories based on Industry 4.0 technologies. During the past year, Zensar forayed into quantum computing and built a platform for the Metaverse, while RPG Life Sciences launched an industry-first initiative that enables the company to digitally connect with doctors from across the country, and provide them a host of services.

On the sustainability agenda, Mr Goenka shared that RPG remains committed to corporate stewardship, with each of the Group’s businesses having identified and set time-bound goals in this regard.

KEC, for example, has pledged to reduce greenhouse gas emissions in its factories by 20% and has also taken up a zero waste-to-landfill target for its manufacturing plants by FY26. The company has already made significant headway towards these goals.

CEAT has been on track to reduce its carbon footprint by 50% by 2030, with renewable energy now constituting 26% of its total energy consumption. Zensar, too, is aiming for a 50% reduction in its energy performance index by 2040, and has initiated relevant action towards the same.

RPG Life Sciences has taken on an ambitious target of becoming Net Zero in its greenhouse gas emissions by 2030, by establishing aggressive short-term targets around energy and water management.

The morning session ended with Group CFO Pramod Menon sharing key highlights of RPG’s performance over the last two years. Despite pandemic-led challenges, the Group’s growth has been healthy, led by CEAT and RPG Life Sciences. He spoke about how RPG companies have been pursuing growth with the goal of attaining leadership position in their respective segments, highlighting that the Group’s success over the years can also be attributed to goodwill and loyalty accumulated over the past few decades.

This was followed by separate breakout sessions between select investors and members from four group companies — KEC, CEAT, Zensar and RPG Life Sciences. With interactions stretching late into the day, there was no better way for the 2022 RPG Investor Conference to mark its success.

Glimpses of the 2022 Annual Investor Conference