CESC Limited has unveiled its strategic roadmap, Vision 2030, detailing plans for significant growth in renewable energy, aiming for 10 GW capacity. The presentation highlights investments in distribution networks, operational efficiencies, and solar manufacturing, projecting a doubling of profits and increased ROE expansion. Key initiatives include increasing contractual renewable capacity and backward integration into solar cell and module ecosystems.
CESC Limited Unveils Vision 2030 with Ambitious Growth Plans
CESC Limited has presented its strategic outlook, Vision 2030, outlining a comprehensive plan to achieve substantial growth and enhance shareholder value. The company aims to pivot towards a dominant position in renewable energy, targeting a medium-term vision of 10 GW capacity. This ambition is supported by strategic acquisitions and organic growth in solar and wind projects, alongside significant investments in battery energy storage systems (BESS).
Key Growth Pillars
Distribution Dominance and Investment
The company emphasizes its strong position in the distribution sector, serving 4.9 million consumers across 7 geographies. CESC plans significant investment in its distribution circles, projecting ₹6,000 Cr towards enhancing regulated equity and capacity build-out. Furthermore, strategic improvements in franchisee performance, including reducing T&D losses, are expected to yield an incremental PAT of ₹250 Cr.
Renewable Energy Expansion
CESC is aggressively expanding its renewable energy portfolio, targeting 10 GW of planned renewables. This includes leveraging its current ~4.8 GWp contractual capacity and pursuing future bid wins. A notable development is the acquisition of an operating solar portfolio by Purvah Green, adding 1,411 MWp and accelerating the journey towards the 10 GW target. The company also plans to establish a 3 GW solar cell and module ecosystem with an investment of approximately ₹3,000 Cr.
Financial Projections and Vision 2030
Profitability and ROE Targets
Vision 2030 projects a doubling of profit (PAT) and an expansion of Return on Equity (ROE) by 400 basis points. This growth is underpinned by higher capex in distribution, increased renewables contractual capacity, improved franchisee performance, and cost optimization measures. CESC anticipates rising cashflows, further supported by backward integration into solar manufacturing and potential distribution privatization opportunities.
Investment and Cashflow
The company plans a significant investment of approximately ₹350 billion over the next five years. This investment will be supported by strong cashflow growth, with an expected Operating Cashflow (OCF) of ₹40 billion in FY26, a 57% year-on-year increase. This robust cash generation is anticipated to self-fund a substantial portion of its expansion plans.
Strategic Initiatives
Solar Manufacturing Ecosystem
CESC is strategically foraying into cell and module manufacturing with a planned 3 GW capacity, focusing on advanced TOPCon+ technology in Greater Noida. This move is supported by attractive incentives from the UP government and policy tailwinds like ALMM-II, aiming to secure captive offtake and scale up operations.
Digital Customer Engagement
The company is enhancing customer engagement through digital initiatives, achieving high rates in digital payment channels (~88%), revenue collection (~95%), and digital docket raising (~83%). CESC has also been recognized for its improved customer service and is pioneering a ‘METAVERSE digital office’ experience.
ESG Commitment
CESC maintains a strong commitment to Environmental, Social, and Governance (ESG) principles, focusing on energy intensity, emissions reduction, water management, and zero liquid discharge. Social initiatives include high retention rates, zero fatalities, and increased CSR impact, while governance is strengthened by a significant proportion of independent directors and a focus on transparency.
Source: BSE
