Torrent Power bets Rs 1 lakh cr on energy, builds new B2C platforms: Jinal Mehta, vice-chairman and MD

The Torrent Group is accelerating its shift towards consumer-facing businesses as it embarks on one of its largest investment cycles in energy. Known for its stronghold in power, gas and pharmaceuticals, the group is now building B2C platforms spanning electricals, diagnostics, hospitals and sports.

At the centre of this strategy is Torrent Power, which is executing nearly Rs 1 lakh crore capex across thermal power, renewables, transmission, distribution, energy storage and green hydrogen. In an interview to T, Torrent Power's Jinal Mehta, vice-chairman and MD, outlines the group's integrated energy strategy, capital allocation priorities and how newer B2C ventures-from electricals to the IPL-fit into its long-term vision.

How do you see Torrent Power's positioning today, given its presence across generation, transmission and distribution?

Torrent Power operates across the entire power value chain-coal-based and gas-based generation, renewables, transmission and distribution. We are also expanding into energy storage and green hydrogen. Importantly, every segment of the value chain is seeing growth today, giving us multiple growth engines and a balanced portfolio.

What are your thermal power expansion plans?
Our current thermal capacity is around 3 GW, including 2.7 GW of gas-based and about 360 MW of coal-based capacity. We recently secured 1.6 GW of coal-based capacity in Madhya Pradesh and are evaluating additional opportunities as states issue new bids. Over the next 6-7 years, we plan to add about 5 GW of thermal capacity, taking total to around 8 GW, with an investment of Rs 60,000-65,000 crore through a mix of greenfield and brownfield projects.

You are targeting 10 GW of renewable capacity by 2030...
We have close to 5 GW of renewables, with a strong pipeline under execution. Around 8 GW of the 10 GW target is either under construction or yet to be built, requiring an investment of over Rs 50,000 crore. We are actively bidding for SECI, DISCOM and C&I projects. Going forward, firm and dispatchable renewable energy projects-often backed by storage-will form a growing part of our portfolio.

Where does your green hydrogen plan stand?
We have completed a pilot project in Gorakhpur, where green hydrogen is being produced and blended into the city gas distribution network. For our 18,000 tonnes per annum PLI project, we have secured land for the RE component and are at an advanced development stage. However, large-scale investment will depend on securing long-term offtake.

What are your plans in transmission and distribution?
Distribution is our largest business segment. We supply around 30 billion units annually to more than 4 million customers across 12 cities, with T&D losses of about 2.3%, among the lowest globally. Over the next five years, we plan to invest over ?10,000 crore in transmission and distribution, primarily in existing geographies. Further expansion will depend on privatisation and franchise opportunities.

How will you fund nearly ?1 lakh crore of capex?
We generate over Rs 5,500 crore of EBITDA annually, which is expected to keep growing and have one of the lowest net debt-to-EBITDA ratios in the sector. We expect to need Rs 25,000-27,000 crore of equity over six to seven years, which can be comfortably met through internal accruals and debt. There is no immediate plan to raise fresh equity.

Torrent Group has entered diagnostics, hospitals, electricals and sports. What is the strategy?
The group is adding new B2C businesses. Beyond pharma, power and gas, we are building platforms in electricals; and sports, where the Torrent brand can be leveraged to create long-term value. Sports fits well into this strategy given India's strong consumer connect and the growth potential in the sports ecosystem.