Mahindra Group considers a solar power venture

• 13 years ago (2010-11-17)
• Junior Isles

Renewables 751

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India-based Mahindra Group is reportedly making plans to move into the solar energy generation business, according to an industry source. It is also looking for a partner in order to bring in domain expertise as well as extra funding for the venture.

“The Mahindra Group is venturing into solar power generation business and is likely to make this foray public in the coming months,.” according to an industry source. The source said that the company is planning to bring in an investment partner and is currently in discussions with a few firms for it.

A Mahindra & Mahindra spokesperson said:, “As a company policy we do not comment on market speculations.”

A senior official with a leading global private equity (PE) firm said:, “Considering they have taken the PE-backed route earlier, it is likely that the new business foray will follow a similar pattern. Given the comfort level they have with Kotak PE, they might go with the same partner.”

Once concluded, the solar power generation venture will be Mahindra’s third such private equity-backed business foray in the last couple of years. Last year, the group had partnered with Kotak PE to acquire majority stakes in Australia-based aerospace companies Aerostaff Australia and Gippsland Aeronautics for around Rs175 crore.

Vikram Uttamsingh, executive director and head of PE group at KPMG India, feels the trend of industrial houses partnering with PE firms will only get bigger in the near future.

“This is evident from the number of such deals we have seen of late. Another interesting trend is that PE firms are also willing to take larger bets and higher risks on the power sector. This has led to investments being made in greenfield type of projects this year which was not the case in 2007-08,” he said.