Avada Group Plans To Invest Rs 1 Lakh Crore Over Next Five Years For Power Generation Business
The renewables firm's solar photovoltaic manufacturing arm has filed documents with the regulator for its first share sale to the public, the firm said.
Avaada Group is planning an investment of Rs 1 lakh crore in different parts of the country over the next five years to help expand into power generation and associated businesses.
The renewables firm's solar photovoltaic manufacturing arm has filed documents with the regulator for its first share sale to the public, the group Chairman Vineet Mittal announced to reporters in Mumbai.
The group, which has around 6,000 employees at present, is looking to hire 10,000 people over the next three years as it expands, Mittal said.
The group currently possesses 6.1 GWp or Gigawatt-peak of solar power generation commissioned assets according to Mittal, and further said that the same amount will be taken up till 30 GWp over the coming five years.
The firm is also looking into wind power generation, and believes that the growth on that front will be faster than solar power in the coming years, Mittal stated. He further said that a fifth of overall generation will stem from wind power in the next five years.
The group is also looking at pumped hydro assets, but Mittal said that he is unsure if the capacity will be commissioned in the next five-year period.
Mittal said that the group does not have any challenges on the capital front to undertake the expansion activities, pointing out that it is yet to fully deploy the Rs 10,500 crore of capital committed by external investors.
Citing the launch of newer investment vehicles, Mittal said the sustainability theme ensures high investor interest in its projects.
Typically, a fourth of the money invested comes from equity while the rest is debt, he said, adding that it will also be deploying internal accruals.
Mittal declined to share any details on the IPO of Avaada Electro, the solar PV manufacturing arm, pointing out that the papers have been filed under the confidential route.
The IPO may hit the markets in the first half of next year, he said.
None of the investors or the promoters of the group are eyeing the dividend income and whatever excess gets generated is redeployed into the business, he added.
The top executive also declined to share the revenue split across businesses for the group or the financial position.
Mittal said a glass manufacturing facility near Noida with a capacity to put out 1,200 tonnes per day announced earlier will be operational in the next 13-14 months.
(With PTI Inputs)
