NEW DELHI: Continuing its aggressive foray into the renewable space, Reliance Industries, through its unit Reliance New Energy Solar Ltd (RNESL), has now invested 25 million euros in German "green solar wafers" technology company NexWafe GmbH and formed a partnership with Danish company Stiesdal A/S for hydrogen electrolyser.
These acquisitions, according to market experts, are positive for the company and its investors. "These investments could generate 20 per cent EBITDA over time and in absolute terms generate EBITDA equal to its petrochemical arm. Long-term investors of Reliance Industries may be happy about the gradual transition of the company to the carbon neutral stage which may generate higher investor interest going forward," Deepak Jasani, Head of Retail Research, HDFC Securities told The New Indian Express.
RIL stock has surged nearly 14 per cent in the last one month and on Wednesday it closed 1 per cent higher at Rs 2,695.90.
The two new deals come just a few days after the company announced acquisition of 100 per cent stake in solar panel manufacturer REC Solar Holdings AS from China‘s National Bluestar Group for an enterprise value of USD 771 million.
It also announced acquisition of a 40 per cent stake in Sterling & Wilson Power, which is into engineering, procurement and construction for solar power projects.
These investments are in line with RIL boss Mukesh Ambani’s plans of investing Rs 75,000 crore over the next three years in clean energy over three years. Reliance has set a target to build solar capacity of at least 100 gigawatts (GW) by 2030, accounting for over a fifth of India’s target of installing 450 GW by the end of this decade.
According to Girishkumar Kadam, Senior Vice President & Co-Group Head - Corporate Ratings, ICRA, overall investment prospects in renewable sector - mainly in solar & wind energy, remains solid.
Kadam expects incremental 60-65 GW of renewable energy capacity addition to happen between March 2021 and March 2025, which would be led by solar energy with a dominant share of 75-80 per cent, followed by wind energy segment. On the current credit profile of the sector, Kadam said renewable entities have so far remained stable.
Reliance industries inks Four Deals in Renewable Market
October 12: Invested 25 million euros in NexWafe
October 12: Partnered Stiesdal A/S to develop and manufacture hydrogen electrolysers
October 10: To acquire 100 per cent stake in REC Solar Holdings AS (REC Group) for USD 771 million
October 10: To acquire 40 per cent stake in Sterling & Wilson Solar for Rs 2,850 crore