Reliance New Energy Solar Ltd on Acquisition Spree.
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Reliance Industry Limited’s subsidiary Reliance New Energy Solar Ltd. announced big acquisitions this Sunday.
RNES acquired REC Solar Energy for $771 million/Rs. 5800 crores and announced its plans to buy Sterling and Wilson Solar for Rs. 3630 crores. RNES will be using the advanced technology and patents of REC to set up a 4-gigawatt manufacturing facility in Jamnagar which is expected to be scaled to 10-gigawatt. The acquisition will form part of the four giga factories the company is planning – an integrated solar PV plant, advanced energy storage battery manufacturing unit, green hydrogen, and fuel cell facility.
REC has 600+ patents on utilities that produce high-efficiency solar panels. Before the pandemic, the company had a 10% market share in the rooftop commercial and industrial solar panel sector with the manufacturing units located in Norway and Singapore. The company has 1300+ employee strengths and has plans on setting up units in France and the US. Within hours of news of the acquisition of REC, the company also announced the to acquire Sterling and Wilson Solar.
69.36% of the shares being held by Shapoorji Pallonji & Co. Ltd. and Khurshed Yazdi Daruvala. As of August 14th the company had Rs. 8731 crore worthy executable orders. These acquisitions make Reliance among the top players of renewable energy.
RNES plans on enabling 100 GW of clean and green energy by the end of the decade and the acquisition is in line with the plans. In the 44th AGM of the company the chairman and the managing director of RIL Mukesh Ambani shared his plan to invest up to $10 billion in sustainable energy.
Such huge acquisitions bring confidence that India might soon be along with other countries in adopting green energy.
