Avaada to invest Rs 1 lakh cr over 5 years; solar PV creates arm files for IPO

Renewable energy-focused Avaada Group aims to invest Rs 1 lakh crore across the country over the next five years as part of its expansion into both power generation and allied businesses.The solar photovoltaic manufacturing arm has filed documents with the regulator for the first share sale to the public, the group’s chairman Vineet Mittal told reporters here.

The group, which currently has about 6,000 employees, plans to hire 10,000 people by expansion over the next three years, Mittal said.Currently, the group has commissioned 6.1 GWp or gigawatt peak of solar power generation assets, Mittal said, adding that the same number will be expanded to 30 GWp in the next five years.

Wind power generation is also being looked at, and the growth on this side will be faster than that of solar power, Mittal said, adding that one-fifth of the total generation will come from wind power in the next five years.

The overall capacity target also includes its battery storage business, where it focuses on delivering solutions that have the ability to supply power during peak hours when renewable energy supply cannot keep up, Mittal said. The group is also looking at hydropower plants, but Mittal said he is not sure if the capacity will come on line in the next five years. Mittal said that on the capital front, the group does not face any challenge to undertake the expansion activities, noting that the Rs is yet to be fully deployed. 10,500 crore of capital invested by external investors.

Citing the launch of newer investment vehicles, Mittal said the sustainability theme ensures strong investor interest in its projects.

Typically, a quarter of the money invested comes from equity, while the rest is debt, he said, adding that internal accrual will also be deployed.

Mittal declined to share details of the IPO of solar manufacturing arm Avaada Electro, pointing out that the papers were filed through the confidential route.

The IPO could hit the markets in the first half of next year, he said.

None of the investors or the group’s promoters monitor the dividend income and the excess generated is redeployed into the business, he added.

The CEO also refused to share the distribution of income among the companies for the group or its financial position.

Mittal said a previously announced glass manufacturing facility near Noida with a capacity of 1,200 tonnes per day will be operational in the next 13 to 14 months.