Mitsubishi Corporation picks stake in India's KIS Group to foray into global biogas business — all about the deal

Mitsubishi Corporation, one of Japan's largest global integrated business enterprises, has acquired a minority equity stake in the Indonesian operations of Bengaluru-based Biogas and Biofuels technology firm KIS Group, the company announced on Wednesday.

This investment marks Mitsubishi Corporation's first entry into the global biogas market, the company was quoted as saying by PTI.

KIS Group's global footprint

Founded in 2006 by KR Raghunath, KIS Group provides end-to-end solutions across key sectors such as palm oil, sugar, dairy, paper, distilleries, and agro-processing.

The company currently has a presence across 11 countries, including India, Indonesia, Malaysia, Singapore, the USA, the UAE, Brazil, Colombia, Qatar, and Spain, the news report said.

The company has announced plans to invest $1 billion across renewable gas and biofuel solutions in Southeast Asia and India by 2030, it said in a release.

According to the company, this strategic investment marks a significant milestone in KIS Group's growth journey, underscoring a shared commitment to advancing sustainable energy solutions and accelerating global market expansion.

The partnership will allow KIS Group to tap Mitsubishi Corporation's extensive network across 90 countries, through which it can accelerate international expansion. Furthermore, the two companies will co-develop and commercialise advanced biogas, BioCNG, and BioLNG solutions for global markets, it said.

KIS Group eyes American, European markets

With Mitsubishi Corporation's backing, KIS Group aims to expand its portfolio to North and South American and European markets over the next 5 years.

The goal is to achieve a substantial increase in renewable gas output, thereby making a significant contribution to the global shift towards using diversified and low-carbon energy sources, PTI reported.

“This strategic collaboration with Mitsubishi Corporation will propel KIS Group to the next orbit of growth,” Raghunath said.

He also noted that the fact that Mitsubishi has chosen to enter the biogas and biofuels market for the first time through KIS Group is a huge vote of confidence in the company's technology, execution capability, and market understanding. “By combining our strengths with Mitsubishi's global reach and industry expertise, we are poised for exponential growth and to create long-term value for stakeholders by expanding access to reliable, low-carbon energy solutions worldwide,” he was quoted as saying by Business Standard.