Abu Dhabi's future energy company Masdar has announced that it has acquired a major stake in leading Indian clean-tech company, Hero Future Energies (HFE).
This is the second investment in HFE portfolio, following initial $125 million made by International Finance Corporation (IFC), part of the World Bank, in 2017, said a statement from the renewable energy arm of Mubadala Investment Company.
This strategic investment will help facilitate the further expansion of HFE in India and other key growth markets, it stated.
A global leader in renewable energy projects, sustainable real estate, sustainable mobility and waste to energy, Masdar has a history of successful private sector partnerships, having delivered renewable energy projects in more than 25 countries since 2006, representing a combined investment of around $13.5 billion.
HFE, whose existing operations are mostly in India, hopes that as much as 25 per cent of its growth will come from new international markets, including Europe and the UK, and Asia, including Bangladesh, Singapore, Vietnam, Philippines and Indonesia.
On the deal, HFE Chairman and Managing Director Rahul Munjal said: "Hero Future Energies and Masdar are ideal long-term strategic partners. We have clear alignment in our core ambitions. We are committed to advancing the development, commercialisation and deployment of cutting-edge renewable power solutions."
It is a third-generation entrepreneurial company and part of the Munjal family’s Hero Group, which includes Hero MotoCorp the dominant leader in the domestic motorbike industry in India.
HFE was established in 2012 as a deliberate strategic decision by the Group to enter the high growth market of power generation from clean and renewable sources of energy.
"We are delighted that the renewable energy arm of Mubadala has decided to invest in the renewable energy arm of the Hero Group to support HFE’s global expansion plan and our aspiration to be a premier global clean-tech company providing solutions to the enormous challenges posed by climate change," noted Munjal.
CEO Mohamed Jameel Al Ramahi said: "At Masdar, through our strategic investment in Hero Future Energies, we are proud to associate our name with one of India’s most iconic brands and to support its further expansion, both in India’s burgeoning renewable energy sector and new geographies."
"As a global renewable energy leader active in more than 25 countries, and with HFE’s standing as one of India’s leading independent power producers specialising in onshore wind energy, PV power plants and rooftop solar, we see numerous opportunities to collaborate in growing our market presence and diversifying our portfolio in terms of clean technologies," stated Al Ramahi.
"Our partnership with HFE heralds a new phase of growth for both our companies," he added.
The Indian group's current portfolio includes 1.3GW of wind and solar power and an additional 1.5GW under construction or planned.
The company has a 2022 growth target of 5GW of installed and operating capacity. Alongside traditional renewable projects of solar and wind, HFE will look to deliver futuristic renewable energy projects utilising new technologies including battery storage and floating solar, it added.-TradeArabia News Service