Havells India Ltd has announced signing of binding term sheet to invest Rs.600 crore in Goldi Solar Pvt Ltd.
Havells investment is part of proposed fund raise by Goldi of up to Rs.1,300 crore which is expected to be completed within next 75 days, a release by Havells India said.
Havells has been evaluating multiple possible ways to participate in this mega trend through solutions for energy generation, storage, distribution and consumption etc.
Energy transition is an adjacency to Havells’ existing portfolio, the company said in a release.
Strategic rationale
Havells has been participating in the solar eco-system through sales of inverters, modules, solar cables and DC switchgears. Havells has stronger brand led play in residential rooftop and commercial and industrial (C&I) segment. The increasing domestic reliance on modules through policy measures required Havells to either establish own manufacturing or strategically partner with module manufacturer(s). Post detailed evaluation of multiple considerations, the Executive Committee of the Board favoured a relatively de-risked approach of partnering with a large module manufacturer (with planned backward integration in domestic cells) to participate in the large opportunity set through consistent sourcing arrangement.
Equity stake
Binding term sheet provides for primary investment of Rs.600 crore. Havells will have 8.90 per cent to 9.24 per cent stake in Goldi depending on size of total primary round ranging between Rs.1,050-1,300 crore, the release noted.
Growth of RE
Renewable energy capacity is projected to grow at a CAGR of 16 per cent till 2030, reaching approximately 500 GW, (64 per cent of total energy capacity). Out of the 500 GW, around 300 GW is anticipated to come from solar energy sources. India solar sector is at an inflection point supported by various government initiatives and favourable unit economics across value chain. Solar energy generation project represents multi-billion-dollar opportunity over next five years, Havells India said.
Featured photograph is a file picture showing a solar module manufacturing facility of Goldi Solar
