Suzlon Group has executed definitive agreements to acquire a 76% stake in renewables O&M business Renom Energy Services (Renom) in two tranches from the Sanjay Ghodawat Group (SGG).
Renom is the largest multi-brand operations and maintenance service (MBOMS) provider in the country with assets of 1782MW in wind, 148MW in solar, and 572MW in BOP under maintenance across customer segments.
The first tranche involves the acquisition of a 51% stake for a consideration of INR400 cr. (€436m).
In the second tranche, Suzlon will acquire an additional 25% stake within 18 months from the acquisition of the first tranche for a consideration of INR 260 cr.
The closure of the transaction is subject to the completion of certain condition precedents.
This strategic acquisition will help unlock Renom’s core potential and position it from a place of strength to become a leading Independent Service Provider (ISP) and custodian of multi brand renewable energy assets, Suzlon said.
This deal will also enable Renom to leverage the massive opportunity of targeting over 32GW of non-Suzlon wind energy assets in the country today, it added.
Suzlon Group vice chairman Girish Tanti said: “With India’s target to achieve 500GW of renewable energy installations by 2030, we shall see a multitude of different technologies and wind turbines of various makes in the market going ahead.
“Renom has emerged as a single largest player in this domain with great strength and potential to tap further into this market segment.
“This acquisition aligns with Suzlon Group’s vision of leveraging growth while safeguarding our country’s renewable energy assets, irrespective of their original make.
“We admire Renom’s intrinsic strengths as an ISP, and we compliment the Sanjay Ghodawat Group for building the same with such vision and commitment.
“Sanjayji Ghodawat has been a long-standing well-wisher of the Suzlon Group, and we look forward to a successful partnership with the SGG.”