KKR & Co Inc, the US private equity giant, and Hero Group have agreed to invest $450 million in the motorcycle maker’s renewable energy arm, the companies said on Tuesday, reported Reuters.
Founded in 2012, Hero Future Energies (HFE) is an independent power producer with a diversified portfolio of 1.6 GW of operating solar and wind projects.
In a joint statement, the companies said, “This investment will position HFE for continued growth and support its efforts to expand its renewable energy capacity and capabilities across technologies such as solar, wind, battery storage, and green hydrogen, and into new markets over time.”
The development comes as India targets to meet half of its energy demands from renewable sources, including solar and wind, by 2030.
Hardik Shah, partner at KKR, said, “HFE’s clean energy solutions play an important role in helping companies decarbonise as energy demands continue to grow. We look forward to working closely with HFE’s management team and existing investors, including the Hero Group and IFC, to help HFE achieve its next phase of growth and contribute to the energy transition efforts in India and globally.”
Rahul Munjal, chairman and managing director, Hero Future Energies, said, “I am happy to welcome KKR as a strategic partner in our company to achieve our goal of expanding renewable energy capacity across multiple geographies by 2025.”
According to the release, through its range of solutions, HFE would also look to support companies in their efforts to decarbonise and transition towards sustainable energy sources to achieve their net zero emission goals. The investment would help accelerate India’s energy transition, it added.
It advances the country’s significant effort to expand renewable energy capacity, reduce carbon emissions by 1 billion tons by 2030 and achieve net-zero emissions by 2070.
“Private sector participation, including from global investors, is expected to be a key enabler for India to meet these targets, in lockstep with supportive government policies,” the release added.