Mumbai: Mukesh Ambani-owned Reliance Industries Ltd. bought two companies, a Norwegian solar panel maker and an Indian builder of renewable projects, to extend Reliance's dominance into alternate energy, Bloomberg reported.
Reliance acquired solar panel manufacturer REC Solar Holdings AS, giving the company an enterprise value of 771 million dollars, it said in a filing on Sunday. It also said, hours later, that it had agreed to acquire 40% of billionaire Pallonji Mistry's Sterling & Wilson Solar Ltd., valued at 372 million dollars as of Friday's close in Mumbai.
The new acquisitions would help Reliance expand its green energy markets globally, including United States, Europe, Australia, and Asia. Ambani's new purchase aligns with PM Narendra Modi's goal for India to more than quadruple renewable energy capacity to 450 gigawatts by the end of the decade. At the moment, India is the world's third-largest emitter of greenhouse gases.
In June, Ambani had said that he would spend 10 billion dollars on alternative energy over three years.
REC Solar, bought from China National Bluestar Group Co., manufactures solar-grade polysilicon and solar panels and modules at facilities in Norway and Singapore. The company has more than 1,300 employees worldwide, according to Reliance's statement. Reliance will use REC's technology to manufacture metallic silicon and solar panels. Its Gigafactory in Jamnagar in Gujarat will produce the products while the factory's annual capacity will expand to 10 gigawatts from 4 gigawatts.
In a separate statement, Reliance said that Sterling & Wilson is located in 24 countries and has installed 11 gigawatts of solar power projects. In the statement, Ambani said that Reliance has aimed at the goal of achieving 100 GW clean and green energy before the end of this decade.