Strategic Roadmap for RPG Enterprises

RPG House, 5th Floor. 31st March, 2012 Mr. Harsh Goenka, the Chairman of the RPG Enterprises, had just put down a copy of a study by CNN. The study had pointed out an interesting fact; that only 67 companies that were in the Fortune 500 list in 1955, were on the list in 2011. Of the remaining 87% of the companies, many did not exist today. Harsh Goenka couldnt help but ponder what went wrong in those businesses. These were considered to have sturdy fundamentals. And if they could not ensure advancement of these organisations in the long run, then what would? RPG Enterprises RPG is a Rs 15000 Cr group with businesses spread across infrastructure, tyre, IT, speciality sectors. The group has over 10 companies with 5 listed Co.s. The group has grown through various organic and inorganic endeavours. This portfolio has been reviewed and juggled on several occasions, with the ultimate mandate to make the group sustain the toughest of economic environments. Given this, prepare a roadmap with 5 year vision for RPG Group. The road map should cover in detail: Opportunities: What businesses would drive growth? Growth path: What organic & inorganic growth opportunities lay? What should the group focus on? Group Composition: What should be the ideal composition of the group? Should the group divest its businesses? Which, if yes? Is there scope and need for restructuring and mergers? Shareholder value: How can the collective value of all shareholders be improved?

Deliverable 1 How do you identify the core competencies of RPGs existing businesses and identify what kind of businesses thrive in the long run?