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Hero’s renewable arm gets $450mn from parent, KKR

Buyout firm KKR will make the bulk of the investments in Hero Future Energies with parent Hero Group, which controls India’s largest motorcycle maker Hero MotoCorp, bringing the rest. (Photo: Mint)Premium
Buyout firm KKR will make the bulk of the investments in Hero Future Energies with parent Hero Group, which controls India’s largest motorcycle maker Hero MotoCorp, bringing the rest. (Photo: Mint)

Private equity firm KKR & Co. and Hero Group have agreed to invest $450 million in renewable energy company Hero Future Energies to expand the company’s clean energy capacity across solar, wind, battery storage, and green hydrogen.

MUMBAI : Private equity firm KKR & Co. and Hero Group have agreed to invest $450 million in renewable energy company Hero Future Energies to expand the company’s clean energy capacity across solar, wind, battery storage, and green hydrogen.

The buyout firm will make the bulk of the investments in Hero Future Energies, with parent Hero Group, which controls India’s largest motorcycle maker, co-investing in the renewable energy producer as part of the transaction, the companies said, without disclosing further details.

“KKR’s investment will drive Hero Future Energies’ growth in the rapidly growing renewable energy markets domestically and globally, as well as in new technologies such as battery storage, solar-wind hybrid projects, round-the-clock power, and green hydrogen," said Srivatsan Iyer, global chief executive of Hero Future Energies.

KKR will invest from its maiden Asia Pacific Infrastructure Fund, which raised a record $3.9 billion last year.

The investment in Hero Future Energies builds on KKR’s experience in India and the renewables sector. Since 2011, KKR has deployed over $15 billion in equity globally to invest in renewable assets, such as solar and wind, which have an operational power generation capacity of 23GW, as of 31 December, the company said.

The country’s clean energy industry has seen investments from Reliance Industries and Adani Group, state-run companies, and buyout firms as India seeks to reduce its reliance on fossil fuels and combat rampant pollution. India plans to generate at least half of its power requirements from clean energy by 2030 and slash the emissions intensity of its economy by 45% from the 2005 level.

“Hero Future Energies clean energy solutions play an important role in helping companies decarbonize as energy demands continue to grow," said Hardik Shah, a partner at KKR.

Founded in 2012, Hero Future Energies has a portfolio of 1.6 gigawatts of operating assets across utility and commercial and industrial sectors. The power producer is also present in Bangladesh, Vietnam, Singapore, Ukraine and the UK. In addition, it plans to invest in grid-connected solar and wind, rooftop sectors, energy storage and green hydrogen over the next few years in India and overseas.

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