Inox Clean Energy powers into top three with Rs 25k-cr buys, says company official

NEW DELHI: Inox Clean Energy has added assets worth Rs 25,000 crore through mergers and acquisitions (M&A) over the last nine months and is already among the top three renewable energy players in the country, according to a top executive.

"We have made nine acquisitions in the past nine months. These investments are worth Rs 25,000 crore," said Devansh Jain, executive director of INOXGFL, an umbrella entity that houses varied businesses across industrial chemicals, renewable energy generation, solar and wind equipment manufacturing and operations and maintenance of wind farms.

He clarified that the worth of the assets was their enterprise value, which includes debt and cash.


Also Read: Inox Clean buys assets of US' Boviet Solar for $750 million

Jain was speaking to ET following the company's recent acquisition of US-based Boviet Solar for $750 million. He also cited other merger and acquisition (M&A) deals, including the acquisition of Vibrant Energy from Macquarie, two assets of Wind World, the assets of Sunsource Energy, and three assets of SkyPower, including its Africa entity. "Every other major conglomerate which has an ambition to grow wants to be in energy transition," he said.

The INOXGFL group, he said, had incubated renewable power generation and wind turbine manufacturing businesses prior to 2010.

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"This will be a three continent play defined by a stable India business, a profit generating America's business and a future Africa play. We are building a strong annuity business. We are also adding assets organically" said Jain.

Jain added, "We have raised Rs 5,500 crore equity in Inox Clean and we will be raising more. We are at over 96% ownership."


INOXGFL has three listed entities–Inox Wind, Inox Green Energy Services and Gujarat Fluorochemicals (GFL). GFL EV Products, a subsidiary of GFL, is backed by investors including IFC, Washington and Oman Investment Authority. It has plans to become the largest non-Chinese supplier of integrated advanced battery materials globally.

Inox Clean Energy is a privately held business but has plans to go public.

“Every other major conglomerate which has an ambition to grow wants to be in energy transition,” he said.

In January, Inox Clean Energy had announced it had raised Rs 3,100 crore from a group of investors, including US’ largest public pension fund California Public Employees’ Retirement System, or CalPERS.

The company’s plan is to build 11 gigawatts of integrated solar manufacturing capacity and 10 gigawatts of operating renewable energy generation capacity by 2027-28 across India and global markets such as the US and Africa.

With the recent acquisition of Boviet Solar in the US, Inox Clean Energy’s earnings before interest, tax, depreciation and amortisation (EBITDA) are set to surpass Rs 5,000 crore. It is targeting an EBITDA of Rs 12,000 crore by 2027-28.

“Our business is focused on healthy internal rate of returns, cash flows and asset quality,” said Jain