Abu Dhabi Future Energy Company, Masdar, has made a 'strategic investment' in India's Hero Future Energies (HFE) company, as it looks to expand it footprint beyond the UAE.
The company did not disclose the size of its stake in HFE, or the amount invested, but its deal follows on from an initial $125 million (Dh458.8m) investment made two years ago in the Indian firm by the International Finance Corporation, the development finance arm of the World Bank.
Hero Future Energy is a division of the Munjal Family's Hero Group, whose main focus is motorbike manufacturing in Asia's third largest economy.
HFE currently has a portfolio of 1.3 gigawatts worth of wind and solar projects, with a further 1.5GW either planned or under construction. The bulk of its existing operations are in India, but it is also targeting international expansion and expects about 25 per cent of its growth to come from international markets, including the UK, Europe, Bangladesh, Singapore, Vietnam, the Philippines and Indonesia. It is looking to develop 5GW of installed capacity by 2022.
“Hero Future Energies and Masdar are ideal long-term strategic partners. We have clear alignment in our core ambitions. We are committed to advancing the development, commercialisation and deployment of cutting-edge renewable power solutions," said HFE's chairman and managing director, Rahul Munjal. "We are delighted that the renewable energy arm of Mubadala has decided to invest in the renewable energy arm of the Hero Group to support HFE’s global expansion plan and our aspiration to be a premier global clean-tech company."
Masdar is a wholly-owned unit of Abu Dhabi's strategic investment arm, Mubadala Investment Company and the clean-tech firm has already invested in a range of renewable energy projects in the UAE, Jordan, Mauritania, Egypt, Morocco, the UK, Serbia and Spain. The company announced an investment in a $100 million solar project in Uzbekistan on Saturday.
"We are proud to associate our name with one of India’s most iconic brands and to support its further expansion, both in India’s burgeoning renewable energy sector and new geographies," said Masdar chief executive Mohamed Jameel Al Ramahi.
"We see numerous opportunities to collaborate in growing our market presence and diversifying our portfolio in terms of clean technologies."
The IFC made its $125m investment in 2017 "to support the government’s renewable energy programme and boost the confidence of other large business groups and international investors" in India, its head of operations in South Asia, Shalabh Tandon, said.
"With HFE’s new relationship with Masdar, we see that vision taking shape as IFC intends to continue its long-term partnership in supporting the company’s growth in India and international markets.”