Avaada to invest Rs 1 lakh cr in 5 yrs; solar PV making arm files for IPO

MUMBAI, Nov 27: Renewables-focused Avaada Group is aiming to invest Rs 1 lakh crore across the country over the next five years as part of its expansion into both power generation and associated businesses. Its solar photovoltaic manufacturing arm has filed documents with the regulator for its maiden share sale to the public, the group’s chairman Vineet Mittal told reporters here. The group, which has around 6,000 employees at present, is looking to hire 10,000 people over the next three years as it expands, Mittal said. At present, the group has 6.1 GWp or Gigawatt-peak of solar power generation assets commissioned, Mittal said, adding that the same number will be taken up till 30 GWp over the next five years. It is also eyeing wind power generation, and the growth on this side will be faster than solar going ahead, Mittal said, adding that a fifth of overall generation will come from wind power in the next five years. The overall capacity target also includes its play on the battery storage side, where it is aiming to deliver solutions having the ability to deliver power during the peak hours when supply from renewable power cannot keep up, Mittal said. The group is also looking at pumped hydro assets, but Mittal said that he is unsure if the capacity will be commissioned in the next five-year period. Mittal said that the group does not have any challenges on the capital front to undertake the expansion activities, pointing out that it is yet to fully deploy the Rs 10,500 crore of capital committed by external investors. Citing the launch of newer investment vehicles, Mittal said the sustainability theme ensures high investor interest in its projects. Typically, a fourth of the money invested comes from equity while the rest is debt, he said, adding that it will also be deploying internal accruals. Mittal declined to share any details on the IPO of Avaada Electro, the solar PV manufacturing arm, pointing out that the papers have been filed under the confidential route. The IPO may hit the markets in the first half of next year, he said. None of the investors or the promoters of the group are eyeing the dividend income and whatever excess gets generated is redeployed into the business, he added. The top executive also declined to share the revenue split across businesses for the group or the financial position.