Aditya Birla Group to Sell 49% Stake in Renewable Energy Business

Two people who are aware of the development stated that Aditya Birla Group has hired Standard Chartered to sell up to a 49 percent stake in the group’s renewable energy business in order to raise approximately $400 million. The conglomerate wants to strengthen its position in India’s rapidly expanding clean energy sector.

Aditya Birla Renewables intends to add another 2 GW to its existing and planned 2 GW of renewable energy capacity by FY2026 through, and commercial, and industrial (C&I) projects. Due to investor interest in the mature C&I sector, it protects discoms from risks like power purchase cuts. Large electricity consumers can buy electricity from the open market rather than the more expensive grid with open access.

Aditya Birla Group and Abraaj Group agreed in October 2015 to collaborate on the development of a large-scale renewable energy platform in India. However, the Abraaj Group’s demise forced the plan to be put on hold.

According to reports, the Aditya Birla Group intends to significantly expand the renewable energy business, which is a potential growth engine. Future challenges to the global economy. One of the most recent players in this market is Amazon.com Inc., which purchases renewable energy to form a portfolio that can be sold on the Indian electricity exchanges.

India’s renewable energy sector has attracted $78.1 billion in investment, making it the fourth largest installed renewable energy capacity in the world. By 2030, India’s apex power sector planning body, the Central Electricity Authority, anticipates that clean energy sources will supply more than half of the country’s 817GW electricity demand.