The Aditya Birla Group partners with The Abraaj Group to invest in Solar Power in India

7th October, 2015

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  • Partnership seeks to develop a large scale solar energy platform
  • Demonstrates growing private sector role in addressing clean energy demand in India
  • Brings together highly experienced management and operational teams

Mumbai, India, 7th October 2015: The Aditya Birla Group, a US$ 41 billion multinational conglomerate, has today announced a partnership with The Abraaj Group (“Abraaj”), a leading investor operating in global growth markets, to build a large scale renewable energy platform focused on developing utility-scale solar power plants in India. The Aditya Birla Group will invest in the platform through Aditya Birla Nuvo Limited (“ABNL”) and Abraaj will invest through one of its affiliates.

ABNL has entered into a definitive Share Subscription and Shareholders Agreement (SSA) with an affiliate of Abraaj. In accordance with the SSA, subject to the customary closing conditions and subject to the requisite approvals, ABNL and the Abraaj affiliate will hold 51% and 49% of the paid up share capital respectively, in Aditya Birla Renewables Limited, currently a wholly owned subsidiary of ABNL.

Aditya Birla Renewables Limited, the solar power platform, will bid for projects tendered at national and state auctions, with the intent to develop and operate utility-scale solar power plants that can provide clean and cost-effective electricity to the national grids across several key states in India.

The partnership comes at an opportune time in the growth of the Indian renewable energy sector.  The demand for power in India is rising as a result of the country’s growing population, rapid urbanization and increasing economic activities. At the same time, the Indian government has created favorable regulatory policies to foster the use of renewable energy, including setting an explicit target to achieve 100 GW of solar power capacity by 2022 compared to the current installed capacity of approximately         4 GW. Together, these factors create a compelling investment opportunity for the private sector, which can help meet this significant demand for renewable energy.

Commenting on the partnership, Dev Bhattacharya, Business Head - Group Corporate Strategy, Solar Power & E-Commerce, Aditya Birla Group, said, “The Aditya Birla Group supports the Government of India’s initiative for a greater share of renewables in the energy mix, essential for sustained economic and industrial growth. This cooperation will give a fillip to the Aditya Birla Group’s renewable energy initiatives and contribute to reducing the carbon footprint of India as a whole.”

Sev Vettivetpillai, Partner and Global Head of Abraaj’s Thematic Funds Business, said, “The gap in energy infrastructure in growth markets translates into a long-term and sustainable investment opportunity. Renewable energy is set for explosive growth, thanks to technological advances, favorable policies and pricing structures, that make it a competitive alternative to conventional power generation. At Abraaj, we see significant opportunity in India, one of the world’s biggest energy consumption markets. We look forward to working closely with the Aditya Birla Group to provide clean energy to Indian businesses, communities and consumers.”

Mustafa Abdel-Wadood, Partner and Global Head of Abraaj’s Regional Funds Business, added, “The renewable energy sector in India offers vast potential for growth and can play a transformative role in reducing dependency on fossil fuels and enhancing India’s long-term energy security. We are delighted to partner in this rapidly growing sector with one of India’s leading entrepreneurial groups and, together, bring our capital and expertise to bear in creating a landmark investment that can address the demands for clean energy infrastructure in the country.”

The Abraaj Group has comprehensive investment experience across the energy value chain and has invested c. US$ 1 billion in 10 investments in global growth markets.

The Aditya Birla Group was advised on the transaction by Greenstone Energy Advisors.

About the Aditya Birla Group and Aditya Birla Nuvo Limited

A US$ 41 billion corporation, the Aditya Birla Group is in the League of Fortune 500. Anchored by an extraordinary force of over 120,000 employees, belonging to 42 nationalities, the Aditya Birla Group operates in 36 countries across the globe. Over 50 per cent of its revenues flow from its overseas operations. The Aditya Birla Group has topped the Nielsen's Corporate Image Monitor 2014-15 and emerged as # 1 corporate, the 'Best in Class', for the third consecutive year.

Aditya Birla Nuvo Limited, an Aditya Birla Group Company, is a US$ 4.4 billion conglomerate commanding leadership position across its services and manufacturing businesses viz., Financial Services, Fashion & Lifestyle, Telecom, Linen, Agri, Rayon and Insulators businesses.

Globally, the Aditya Birla Group is:

  • A metals powerhouse, among the world's most cost-efficient aluminium and copper producers. Hindalco-Novelis is the largest aluminium rolling company. It is one of the three biggest producers of primary aluminium in Asia, with the largest single location copper smelter
  • Largest producer of carbon black
  • Among the top 2 producers of viscose staple fibre
  • The fourth largest producer of insulators
  • The fifth largest producer of acrylic fibre
  • The largest Indian MNC with manufacturing operations in the USA, wherein 95 per cent of the workforce comprises of Americans

In India, the Aditya Birla Group is:

  • The largest cement manufacturer
  • The largest branded apparels player
  • Among the top three mobile telephony companies
  • Among the top 2 manufacturers of viscose filament yarn
  • The largest producer in the chlor-alkali sector
  • A leading player in life insurance, NBFC and asset management space
  • Among the top two supermarket chains in the retail business

The Aditya Birla Group - Beyond Business

A responsible corporate citizen, the Aditya Birla Group transcends the conventional barriers of business and reaches out to 7.5 million people annually through the Aditya Birla Centre for Community Initiatives and Rural Development and works in 5,000 villages globally. Its ongoing education, healthcare and sustainable livelihood projects in Philippines, Thailand, Indonesia, Egypt, Korea and Brazil, lift thousands of people out of poverty.

About The Abraaj Group

The Abraaj Group (“Abraaj”) is a leading private equity investor, purpose-built for operating in the growth markets of Africa, Asia, Latin America, the Middle East, and Turkey. Employing over 300 people, Abraaj has over 20 offices spread across five regions with hubs in Dubai, Istanbul, Mexico City, Nairobi and Singapore. Abraaj currently manages c. US$ 9 billion across regional, sector and country-specific Funds. Abraaj has realized c. US$ 5.4 billion from over 70 full and partial exits, and Funds managed by Abraaj have made over 140 investments across 10 sectors including consumer, energy, financials, healthcare and utilities. Abraaj is committed to the highest environmental, stakeholder engagement and corporate governance standards and is a signatory to the United Nations-backed Principles for Responsible Investment and the United Nations Global Compact. Abraaj’s founder, Arif Naqvi, was appointed to the United Nations Global Compact Board by UN Secretary-General Ban Ki-moon in 2012 and to the Interpol Foundation Board in 2014.

Disclaimer : Certain statements in this “Press Release” may not be based on historical information or facts and may be “forward looking statements” within the meaning of applicable securities laws and regulations, including, but not limited to, those relating to general business plans & strategy of the Company, its future outlook & growth prospects, future developments in its businesses, its competitive & regulatory environment and management's current views & assumptions which may not remain constant due to risks and uncertainties. Actual results could differ materially from those expressed or implied. The Company assumes no responsibility to publicly amend, modify or revise any statement, on the basis of any subsequent development, information or events, or otherwise. This “Press Release” does not constitute a prospectus, offering circular or offering memorandum or an offer to acquire any shares and should not be considered as a recommendation that any investor should subscribe for or purchase any of the Company’s shares. The financial figures in this “Press Release” have been rounded off to the nearest ` one Crore. The financial results are consolidated financials unless otherwise specified.

Aditya Birla Nuvo Limited
Corporate Identity Number L17199GJ1956PLC001107
Regd. Office: Indian Rayon Compound, Veraval - 362 266 (Gujarat)
Corporate Office: 4th Floor ‘A’ Wing, Aditya Birla Centre, S.K. Ahire Marg, Worli, Mumbai - 400 030
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Stock Code: BSE: 500303  NSE: ABIRLANUVO  Reuters: ABRL.BO / ABRL.NS / IRYN.LU  Bloomberg: ABNL IN / IRIG LX

Aditya Birla Nuvo to invest in Solar Power business

Mumbai, India, 9th July 2015: The Board of Directors of the Company (“the Board”) at its meeting held today, inter alia approved the participation by the Company in the bidding process for the upcoming Central / State / Private Sector Solar Power projects. To begin with, the Board has also approved participation in the upcoming bidding process for Solar Power projects in the State of Telangana.

With the renewed focus of the Indian Government on clean energy and in line with the vision of the Company to invest in the promising sectors, the Company is planning a foray in the Solar Power business. The Board has authorized and approved the formation of special purpose vehicles (SPVs) / Subsidiaries by the Company and will evaluate induction of investor(s) in the SPVs / Subsidiaries, if required.