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How Much Revenue Does RPG Group Make from Each of Its Businesses?

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How Much Revenue Does RPG Group Make from Each of Its Businesses?

RPG Group generates revenue from diverse businesses, including CEAT (tyres), Zensar Technologies (IT), KEC International (infrastructure) and RPG Life Sciences (pharma). Each segment contributes significantly, reflecting the group’s strong presence across multiple industries and consistent financial performance.

Table of Contents

RPG Group’s Company Overview and History

RPG Group, founded in 1979 by Rama Prasad Goenka, is a diversified Indian conglomerate with a strong presence across multiple industries. The group operates in sectors like infrastructure, IT and tyres, with a valuation exceeding billions of dollars.

Owned by the Goenka family, RPG Group ranks among India’s top business houses. Companies like CEAT, KEC International and Zensar Technologies drive its growth. With a global footprint, it continues to be a key player in multiple industries, both in India and worldwide.

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RPG Group Financials and Shareholder Returns

KEC International Ltd., a key RPG Group company, reported ₹19,966.60 crore in revenue and ₹346.80 crore in net profit in FY 2024. With an 11.60% one-year return and 0.54% dividend yield, it drives growth through infrastructure, transmission and renewable energy projects.

MetricValue
Revenue (FY 2024)₹19,966.60 crore
Net Profit (FY 2024)₹346.80 crore
Dividend Yield0.54%
1-Year Return11.60%
3-Year Return22.50%
5-Year Return27.00%

How RPG Group Started and the Growth of Its First Business

RPG Group’s origins trace back to 1820 when Ramdutt Goenka established a business in Calcutta, engaging with the British East India Company. The group was officially formed in 1979 under Rama Prasad Goenka, incorporating companies like Phillips Carbon Black, Asian Cables, Agarpara Jute and Murphy India.

The group’s inaugural venture, Phillips Carbon Black, focused on manufacturing carbon black, a crucial material for the rubber and tyre industries. At that time, India’s industrial sector was expanding, with increasing demand for such materials. Currently, Phillips Carbon Black operates under the RP-Sanjiv Goenka Group, led by Chairman Sanjiv Goenka.

How Did RPG Group Expand into Subsequent Business Sectors?

RPG Group, established in 1979 by Dr R.P. Goenka, has grown into a $4.8 billion conglomerate through strategic acquisitions and diversification across infrastructure, tyres, IT, pharmaceuticals and energy, solidifying its presence in India and global markets.

  • 1979 – Founded by Dr. R.P. Goenka with businesses in jute, carbon black and cables.
  • 1981 – Acquired CEAT, entering the automotive tyre industry.
  • 1982 – Entered power transmission and infrastructure by acquiring KEC International.
  • 1990 – Leadership transitioned to Harsh Goenka; expanded into multiple new sectors.
  • 2000 – Strengthened IT services with Zensar Technologies, enhancing global digital solutions.
  • 2010 – Expanded in pharmaceuticals with RPG Life Sciences, reinforcing healthcare presence.
  • 2020s – Focused on automation, sustainability and global expansion across all business verticals.

RPG Group Revenue Split: How RPG Group Earns Across Different Sectors

RPG Group generates revenue from various companies, each contributing uniquely to its revenue. Here’s an overview:

Ceat Ltd: A key player in the tyre industry, Ceat Ltd manufactures and markets tyres for various vehicles, including two-wheelers, passenger cars and commercial trucks. It focuses on innovation, sustainability and expanding its global presence through high-performance and durable products.

KEC International Ltd: A leading infrastructure company under the RPG Group, KEC International specializes in power transmission, railways, civil and renewable energy projects. It has a global footprint and is instrumental in developing large-scale infrastructure solutions across multiple countries.

Zensar Technologies Ltd: A technology services company, Zensar Technologies provides digital transformation, AI, cloud computing and IT consulting solutions. It serves global enterprises across industries, leveraging cutting-edge technology to enhance business efficiency and drive innovation in an evolving digital landscape.

RPG Life Sciences Ltd: A pharmaceutical company engaged in manufacturing, research and development of speciality and generic medicines. It operates in domestic and international markets, focusing on therapeutic areas like oncology, nephrology and cardiology, ensuring quality healthcare solutions.

Summit Securities: An investment and holding company, Summit Securities manages RPG Group’s diverse financial interests. It focuses on strategic investments in equity and other financial instruments, contributing to long-term value creation within the conglomerate.

Saregama India Ltd: A pioneer in India’s entertainment and music industry, Saregama India owns a vast catalogue of songs, films and digital content. It has expanded into music streaming, film production and innovative products like Carvaan for retro music lovers.

Firstsource Solutions: A global business process management (BPM) company, Firstsource Solutions provides customer service, digital transformation and analytics-driven solutions to sectors like banking, healthcare and telecommunications. It helps businesses enhance operational efficiency and customer engagement.

Harrisons Malayalam: A major player in India’s plantation sector, Harrisons Malayalam produces tea, rubber and other agricultural commodities. It focuses on sustainable farming, export markets and high-quality production, supporting India’s agribusiness growth and rural employment.

Challenges Faced by RPG Group Across Its Businesses

The main challenges faced by RPG Group stem from market fluctuations, technological disruptions, regulatory changes and global competition. Managing diverse businesses across multiple industries requires strategic adaptability, continuous innovation and efficient operational execution to sustain long-term growth and profitability.

  • Market Fluctuations: Economic downturns, demand-supply imbalances and geopolitical factors impact revenue generation in sectors like infrastructure, tyres and IT, requiring agile business strategies to navigate uncertainties and ensure consistent performance.
  • Technological Disruptions: Rapid advancements in automation, AI and digital transformation challenge RPG Group’s traditional business models, necessitating continuous investment in innovation and R&D to maintain competitiveness in evolving markets.
  • Regulatory Changes: Compliance with evolving government policies, taxation structures and environmental regulations affects operational efficiency and profitability, particularly in energy, pharmaceuticals and infrastructure sectors, requiring proactive adaptation to legal frameworks.
  • Global Competition: International players in IT, tyres and engineering pose significant challenges, demanding strong brand positioning, cost efficiency and quality enhancements to retain market share and sustain RPG Group’s leadership in multiple industries.

How does RPG Group’s future look in Terms of Growth and Strategy?

The main focus of RPG Group’s future growth strategy lies in digital transformation, sustainability, global expansion and innovation. By leveraging technology, expanding its market presence and investing in green initiatives, the group aims to strengthen its leadership and drive long-term profitability.

  • Digital Transformation: RPG Group is investing in AI, automation and cloud computing across its businesses, enhancing efficiency, customer experience and operational agility to stay ahead in rapidly evolving industries.
  • Sustainability Initiatives: The group is prioritizing eco-friendly manufacturing, renewable energy adoption and carbon footprint reduction, ensuring long-term business sustainability and aligning with global environmental standards.
  • Global Expansion: RPG Group plans to strengthen its international presence by entering new markets, forming strategic partnerships and acquiring businesses that complement its existing portfolio.
  • Innovation & R&D: Continuous research and development across infrastructure, IT and pharmaceuticals will drive product advancements, process efficiency and new business opportunities, securing competitive advantage in dynamic global markets.

RPG Group’s Expansion Plans and Growth Strategy

RPG Group’s expansion plans focus on global market penetration, strategic acquisitions and technological advancements. By strengthening its presence in key sectors like infrastructure, IT and manufacturing, the group aims to enhance operational efficiency, drive innovation and maintain long-term profitability in competitive industries.

The growth strategy emphasizes sustainability, digital transformation and R&D investments. RPG Group is committed to eco-friendly initiatives, automation and AI-driven solutions to optimize business operations. With a forward-looking approach, it seeks to expand its market leadership and create sustainable value across diverse industries.

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RPG Group Company Overview and Revenue Split – Quick Summary

  • RPG Group, founded in 1979 by Rama Prasad Goenka, operates in infrastructure, IT, tyres and pharmaceuticals. With companies like KEC International and Ceat Ltd., it drives innovation and sustainable growth across diverse industries.
  • KEC International Ltd., part of RPG Group, posted ₹19,966.60 crore in revenue and ₹346.80 crore net profit in FY 2024. With 11.60% annual returns and 0.54% dividend yield, it excels in infrastructure and energy sectors.
  • RPG Group’s roots trace back to Phillips Carbon Black Limited, established in 1960. It expanded into manufacturing, with CEAT and KEC International becoming industry leaders. Leadership now rests with Harsh Goenka.
  • RPG Group expanded into multiple sectors, acquiring and growing businesses like CEAT (1982), KEC International (1982), Zensar Technologies (2001) and RPG Life Sciences, strengthening its presence across infrastructure, IT and pharmaceuticals.
  • RPG Group generates revenue from various businesses, with KEC International contributing the highest at ₹19,966.60 crore, followed by Ceat at ₹11,963.20 crore. Other key contributors include Zensar Technologies, Firstsource Solutions and Saregama India across diverse sectors.
  • The main challenges of RPG Group include market volatility, global supply chain disruptions, raw material cost fluctuations, technological advancements and regulatory changes impacting business operations and profitability across different sectors.
  • RPG Group focuses on expansion through acquisitions, technological innovation and market diversification, ensuring long-term growth in infrastructure, IT and energy, while strengthening its global presence.
  • RPG Group aims to scale operations in IT, tyres and infrastructure, leveraging innovation, strategic acquisitions and digital transformation to enhance competitiveness and sustain long-term profitability.
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RPG Group Stock And Its Revenue Across Business Segments – FAQs

How Much Revenue Does RPG Group Make from Each of Its Businesses?

RPG Group earns revenue across multiple businesses, with KEC International leading at ₹19,966.60 crore, followed by Ceat at ₹11,963.20 crore. Other contributors include Zensar Technologies, Firstsource Solutions, Saregama India, RPG Life Sciences, Summit Securities and Harrisons Malayalam.

What Does RPG Group Do?

RPG Group is a diversified conglomerate operating in sectors such as infrastructure, tyres, information technology, pharmaceuticals, energy, plantations and venture capital. Its key businesses include CEAT (tyres), KEC International (infrastructure), Zensar Technologies (IT services) and RPG Life Sciences (pharmaceuticals).

Who Is the Owner of RPG Group?

RPG Group was founded by Rama Prasad Goenka in 1979. Currently, his eldest son, Harsh Goenka, serves as the chairman, overseeing the conglomerate’s diverse business operations.

What Are the Key Businesses Under RPG Group?

RPG Group’s key businesses include CEAT (tyre manufacturing), KEC International (power transmission and infrastructure), Zensar Technologies (IT services), RPG Life Sciences (pharmaceuticals), Raychem RPG (energy solutions) and Harrisons Malayalam (plantations).

How Much Revenue Does RPG Group Generate Annually?

RPG Group’s revenue comes from various businesses, with KEC International leading at ₹19,966.60 crore, followed by Ceat at ₹11,963.20 crore. Other contributors include Zensar Technologies, Firstsource Solutions, Saregama India, RPG Life Sciences, Summit Securities and Harrisons Malayalam.

Which Segment Contributes the Most to RPG Group’s Revenue?

KEC International contributes the most to RPG Group’s revenue, generating ₹19,966.60 crore annually. It plays a key role in infrastructure, transmission and renewable energy projects, making it the group’s largest revenue driver, followed by Ceat and Firstsource Solutions.

How Has RPG Group’s Stock Performed Over the Years?

KEC International, a major RPG Group company, has delivered consistent returns over the years. It posted an 11.60% return over one year, 22.50% over three years and 27.00% over five years, reflecting steady growth in the infrastructure sector.

Does RPG Group Give Bonus Shares?

The issuance of bonus shares by RPG Group’s subsidiaries, like CEAT and KEC International, depends on individual company policies and financial performance. Investors should consult official announcements or financial reports for specific information on bonus share issuance.

Who Are the Major Shareholders of RPG Group?

The major shareholders of RPG Group’s KEC International include promoters holding 50.10%, followed by Domestic Institutional Investors (DIIs) with 24.90%. Foreign Institutional Investors (FIIs) own 15.20%, while the public holds the remaining 9.80% as of December 2024.

What Are Some Recent Acquisitions by RPG Group?

RPG Group has expanded through key acquisitions, including CEAT’s $225 million purchase of Camso’s Off-Highway tyre business from Michelin and Zensar Technologies’ acquisition of BridgeView Life Sciences to strengthen its healthcare and life sciences portfolio.

Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.

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