The Modi government's plans to make India one of the world's largest renewable energy markets has not only attracted a bee-line of global investors but has also led to large Indian conglomerates re-looking at the space.
ET NOW learns from multiple sources that the Munjal family led $5.6 bn Hero Group is looking to expand its footprint in the sunrise sector through its holding company for all renewable energy projects - Hero Future Energies which is headed by Rahul Munjal.
"Hero Future Energies is exploring options to raise around $100 mn to expand its renewable energy portfolio. The company wants to be well-positioned to invest in fresh projects. The plans are at a preliminary stage and the company is open to divesting a minority stake and rope in strategic or private equity investors," said one of the sources.
In response to an email query from ET NOW on the fund raising plans, Hero Future Energies responded saying, "Currently the entire equity has been funded by the family. Hero Future Energies is expanding its portfolio to 1 GW and will therefore explore all options as and when required".
Recently, Hero Future Energies had bagged a 38 MW solar PV project from the Madhya Pradesh government. In response to a query on competitive bidding for renewable energy projects, Hero Future Energies responded saying, "The trend today in solar is falling project costs and financing costs. There is a surge of new entrants in the solar industry today. Some of them have been quoting very aggressive entry level prices to win the bid. Since we have been in the industry for the last 3 years, our bid prices are based purely on viability of projects in the long run. All our solar bids have been won at the higher end of the spectrum and the Madhya Pradesh bid was the highest successful bid".
Hero Future Energies has a total installed capacity of 260 MW in wind, solar and hydro power segments across 10 states.