Reliance is aggressive with their visions and places their cards on right bets. Reliance\’s vision for solar energy space acquisitions creates quite a buzz with the future beholding clean energy business. An empire that currently generates half of its revenue from refining and petrochemicals is pushing for clean energy, a massive ideological shift.
Sprinting With New Acquisitions
The oil-to-retail conglomerate has run past four clean energy deals & a partnership within a week. With the purchase of REC Solar Holdings AS from China National Bluestar (Group) Co, Reliance has pushed up its abilities in panels & polysilicon along with access to a vast customer base. Acquisition of German company, Nexwafe\’s Technology supported the delivery of competitively priced PV panels. This is a business where scale plays a pivotal role in success. For the installation of panels, Reliance is betting on acquiring a 40% stake in EPC player Sterling & Wilson Solar. And lastly, for storage, it has entered into a partnership arrangement with energy storage company Ambri Inc. It\’s a chessboard strategy acquisition where Reliance is taking steps to complete its whole technology circle. This acquisition will complete its gamut of solar energy business & break Chinese hegemony globally.
Pioneering India\’s New Growth Story
Reliance is also setting up 5000 acres complex in Jamnagar-India with Giga Factories for integrated solar PV modules, electrolyzes, fuel cells, and energy storage. Reliance plans to set up 100GW of solar energy by 2030. Reliance\’s green energy business, taking shape, may contribute 10% of EBITDA in 5 years. It still needs some technology around fuel cell development. It is expected to make many more such acquisitions in the coming few months to become one of the largest conglomerates in the clean energy space. Reliance wishes to be a carrier of the green energy revolution in India & will lead the Government\’s objectives towards the Paris Climate Agreement. No other company has made such a scale of change within a short period. This clearly shows the personal commitment of Mukesh Ambani to this vision & their diversity objectives over time. They want to be a global leader in this field and take quick steps before competitors take over the sector.
20 years ago, both China & India were at the bottom of the global solar industry. In 2003, China had a mere 2% share of global solar manufacturing, and today China\’s share is 80%. Of the top 10 solar companies globally, eight are Chinese, & close to 80% of all solar equipment used in India is imported from China. India\’s Clean energy coupled with Made in India initiative is now expected to change the tide.
Do you think that these acquisitions are in line with Investor\’s expectations and growing consumer expectations?