Rajesh Patel : Balancing Stakeholder Interests Through Strategic Financial Leadership At Mahanagar Gas
Rajesh Patel
Chief Financial Officer
Rajesh Patel, the Chief Financial Officer at Mahanagar Gas, brings a wealth of expertise and strategic vision to the City Gas Distribution (CGD) industry in specific and energy sector in general. With nearly three decades of experience in finance and management, Rajesh has played a pivotal role in steering the company through a dynamic landscape marked by evolving energy demands and envi- ronmental challenges. His journey in the industry began with a solid foundation in finance, and he gradually honed his skills in financial reporting, risk management, and strategic planning.
Below is an excerpt of Rajesh Patel’s exclusive interaction with CEO Insights magazine.
Can you briefly walk us through the key milestones of your 29-years leadership journey in the financial services domain?
Throughout my 29-years leadership journey in financial services, several key milestones have shaped my career. It all started in 1993 when I qualified as both a Chartered and Cost Accountant. My first major role at Crompton Greaves Ltd exposed me to diverse business operations, from engineering to consumer electronics, giving me deep insights into internal audits, management information sys- tems, financial feasibility reports and financial processes. My later transition to Mahanagar Gas Limited marked a turning point,
where I spear- headed trans- formative growth initiatives in CGD Industry. These years, coupled with my involvement in complex ERP implementations with cross function teams, helped me understand the importance of integrated systems, customer-centric strategies, and opera- tional efficiency. Today, these foundational experiences continue to guide my approach to leadership, ensuring sus- tainable business growth, operational excellence, and customer value across the strategic business decision.
How does your role influence decision making, and in what ways do you become a key driver of choices?
As CFO, my influence on decision-making is profound, particularly during unpre
ceden -ted challenges like COVID-19 and geopolitical upheavals. These crises necessitated a swift response to maintain operational stability and address sudden fluctuations in natural gas prices. I guided the organization through complex financial landscapes by quick pricing decisions, optimizing gas-sourcing contracts, and managing price volatility.
For instance, when spot prices surged due to global events, transitioning from spot contracts to more stable term contracts linked to stable indices, minimized risks and helped optimising gas costs. Addi- tionally, I prioritized maintaining strong relationships with our customers effectively commun- icating these changes and justifying pricing decisions, this helped reinforced our commitment to operational continuity. Ultimately, my role is integral in shaping choices that drive the organization's resilience and success.
What are the new financial strategies/ advance- ments the organization is working on? What is the financial roadmap that you have planned for the organi- zation?
As a seasoned CFO , I recognize the pressing need to adapt our financial strategies in response to the global shift towards renewable energy. Our financial roadmap focuses on fostering fastest growth in our core business of CGD amid the likely decline of use of liquid fossil fuels and diversifying revenue streams through inclusion of renewable energy sources. We have initiated several key advancements, including the
How does your role influence decision making, and in what ways do you become a key driver of choices?
As CFO, my influence on decision-making is profound, particularly during unpre
ceden -ted challenges like COVID-19 and geopolitical upheavals. These crises necessitated a swift response to maintain operational stability and address sudden fluctuations in natural gas prices. I guided the organization through complex financial landscapes by quick pricing decisions, optimizing gas-sourcing contracts, and managing price volatility.
I recognize the pressing need to adapt our financial strategies in response to the global shift towards renewable energy
For instance, when spot prices surged due to global events, transitioning from spot contracts to more stable term contracts linked to stable indices, minimized risks and helped optimising gas costs. Addi- tionally, I prioritized maintaining strong relationships with our customers effectively commun- icating these changes and justifying pricing decisions, this helped reinforced our commitment to operational continuity. Ultimately, my role is integral in shaping choices that drive the organization's resilience and success.
What are the new financial strategies/ advance- ments the organization is working on? What is the financial roadmap that you have planned for the organi- zation?
As a seasoned CFO , I recognize the pressing need to adapt our financial strategies in response to the global shift towards renewable energy. Our financial roadmap focuses on fostering fastest growth in our core business of CGD amid the likely decline of use of liquid fossil fuels and diversifying revenue streams through inclusion of renewable energy sources. We have initiated several key advancements, including the
acquisition of Unison Enviro Private Limited to expand our CGD network and investing in LNG infrastructure to tap into the heavy-duty vehicle market.
Furthermore, we signed an MoU with MCGM to process municipal solid waste into compressed biogas (CBG), contributing to a cleaner Mumbai while integrating renewable sources into our portfolio. Our investment in 3V Industries Private Limited, which is manufacturing mainly 3-wheeler cargo vehicles to target last-mile electric vehicle mobility solutions, reinforcing our commitment to a sustainable future. By embracing these strategies, we are positioned to thrive in an evolving energy landscape.
What advice would you give to the upcoming financial leaders in the industry?
To aspiring financial leaders, my advice based on my experience. First, prioritize your cardinal duty that is protecting the value. This means ensuring accurate reporting, compliances and safeguarding resources, from fixed assets to recognition of transaction i.e. sales and receivables. Next, understand that enabling business growth is key to success and hence finance as function should ensure simplification of processes and leveraging technology to enhance efficiency and value creation without sacrificing control.
Be vigilant about new business opportunities, cost drivers, know how fixed and variable costs impact your operations, and seek cost-saving opportunities. Addi- tionally, effective comm- unication is vital to value creation that is to share insights with respect to cost, profitability, non-performing assets across the functional departments to foster collaboration and align priorities. Finally, from an accountant to become a business leader, understand the importance of intangible assets, such as employees and customer relationships, which significantly contributes to longterm success of any business though not recognized in the Balance Sheet and charged to Profit and Loss Statement. Embrace these principles, and you'll lead with impact.
Rajesh Patel, Chief Financial Officer, Mahanagar Gas
Rajesh is the Chief Financial Officer of Mahanagar Gas, where he drives financial strategy and innovation in the gas distribution sector. With exten- sive experience in financial planning and resource mana- gement, he plays a crucial role in enabling sustainable energy solutions and enhancing operational efficiency in a competitive market.
Furthermore, we signed an MoU with MCGM to process municipal solid waste into compressed biogas (CBG), contributing to a cleaner Mumbai while integrating renewable sources into our portfolio. Our investment in 3V Industries Private Limited, which is manufacturing mainly 3-wheeler cargo vehicles to target last-mile electric vehicle mobility solutions, reinforcing our commitment to a sustainable future. By embracing these strategies, we are positioned to thrive in an evolving energy landscape.
What advice would you give to the upcoming financial leaders in the industry?
To aspiring financial leaders, my advice based on my experience. First, prioritize your cardinal duty that is protecting the value. This means ensuring accurate reporting, compliances and safeguarding resources, from fixed assets to recognition of transaction i.e. sales and receivables. Next, understand that enabling business growth is key to success and hence finance as function should ensure simplification of processes and leveraging technology to enhance efficiency and value creation without sacrificing control.
Be vigilant about new business opportunities, cost drivers, know how fixed and variable costs impact your operations, and seek cost-saving opportunities. Addi- tionally, effective comm- unication is vital to value creation that is to share insights with respect to cost, profitability, non-performing assets across the functional departments to foster collaboration and align priorities. Finally, from an accountant to become a business leader, understand the importance of intangible assets, such as employees and customer relationships, which significantly contributes to longterm success of any business though not recognized in the Balance Sheet and charged to Profit and Loss Statement. Embrace these principles, and you'll lead with impact.
Rajesh Patel, Chief Financial Officer, Mahanagar Gas
Rajesh is the Chief Financial Officer of Mahanagar Gas, where he drives financial strategy and innovation in the gas distribution sector. With exten- sive experience in financial planning and resource mana- gement, he plays a crucial role in enabling sustainable energy solutions and enhancing operational efficiency in a competitive market.