Sumitomo buys 49% in Hero Future Energies unit for Rs 375 crore

New Delhi: Japan's Sumitomo Corporation has acquired a 49% stake in a unit of Hero Future Energies (HFE) for ₹375 crore, said people aware of the deal. HFE will retain a 51% stake.

The unit is developing a renewable energy project in Karnataka's Bidar district with a capacity to generate 500 MW electricity comprising wind, solar and battery energy storage.

Hero Future has a 10 GW renewable energy development pipeline including operational and under-construction projects. It has floated multiple units or special purpose vehicles to house its various projects.


"We are delighted to welcome Sumitomo Corporation as a strategic partner in this project," said Rahul Munjal, the company's chairman. "This partnership is an endorsement of HFE's capabilities to execute complex renewable energy projects at scale." Sumitomo is reportedly looking to invest around $1.3 billion in renewable energy in India.