Aditya Birla Group To Sell Stake In Renewable Energy Business

According to persons familiar with the situation, the Aditya Birla Group, which is owned by Kumar Mangalam Birla, is looking to sell up to 49 percent of its stake in its renewable energy sector, for which it has recruited Standard Chartered. The group wants to raise over $400 million in order to strengthen its position in the clean energy industry.

One of the two individuals told a media agency that "The renewable energy business is a potential growth engine for the Aditya Birla Group, and the plan is to grow it considerably,”

Aditya Birla Renewables aspires to develop 4.5GW of installed renewable energy capacity by FY2026 through utility and commercial and industrial (C&I) projects, the report said.

The share sale occurs at a time when rival companies have invested to strengthen their positions in clean energy projects. The Tata group is putting $77,000 billion towards renewable energy. Reliance has disclosed an investment of Rs 75,000 crore over the next three years. The Adani Group has also disclosed plans to invest $70 billion in green energy initiatives over the next ten years.

In a blog post from last month, Kumar Mangalam Birla, chairman of the Aditya Birla Group, stated that his group companies are investing in sustainable materials, circular economy, and green energy.

“As a nation, we aim to generate 50 percent of our power requirements from renewable energy sources or put another way, have 500 GW of non-fossil fuel-based capacity by 2030. India is walking the talk as is evident from its pioneering leadership of the International Solar Alliance,” ,  Birla said

India, which holds the same position in the renewable energy country appealing rating for 2021, is the third-largest energy consumer in the world. In terms of installed renewable energy capacity (including big hydro), wind capacity, and solar capacity, it is fourth globally (as per REN21 Renewables 2022 Global Status Report).