The US $ 2.1 billion Kalyani group?s foray into the wind sector received an equity boost from First Reserve Corporation, a leading energy-focused private equity firm. Expansion of the wind business is part of the group?s plans to expand the non-automotive business and non-conventional energy was one of the sectors identified by the company to get into.
Amit Kalyani, Executive Director of Bharat Forge, said they would not disclose the investment amount or the percentage acquired by First Reserve now. Kalyani said the group was making substantial investments in this business and that the company would be setting up an plant to manufacture wind turbines in India and in Europe. A plant to manufacture 2 MW wind turbines will come up near Pune while the manufacturing facility in Europe would make 2 MW and the 2.5 MW turbines and these would be out by the end of the financial year, Kalyani said.
The Kalyani Group?s wind energy business has been christened as Kenersys, which will be an integrated wind energy company that would design, assembly and marketing of wind turbine generators. The Group had forayed into the renewable energy market with the acquisition of RSBconsult GmbH (RSB), Germany last year. RSB was a design and consulting house based in Muenster, Germany. Kalyani has also had a presence in the wind energy sector as a wind farm operator as well as components supplier to wind turbines which require forged components. RSB is now become Kenrsys GmbH, Kalyani said.
B N Kalyani, chairman, Kalyani Group said, the group?s wind energy business would be strengthened further with First Reserve Corporation coming in as a strategic investor.
The Kalyani Group including Bharat Forge, currently supplies key wind turbine sub-components to component manufacturers and has utilized these relationships to secure components for Kenersys, Kalyani said. Kenersys will design and develop several key components for OEM?s & Tier I companies in the industry, thus reducing their reliance on outside suppliers, he added.
First Reserve Corporation has invested in Kenersys. First Reserve is the world?s leading private equity firm in the energy industry and has an active investment program in the renewable energy sector and has invested in seven companies covering biofuels, waste to energy, CO2 offset origination and renewable generation; solar and wind. With over USD 1.2 billion invested and committed to alternative and renewables companies, First Reserve is one of the largest investors in renewable energy and is targeting up to 15 per cent of funds under management to this sector.
Francesco Giuliani, Director at First Reserve said there was a perfect match between First Reserve and Kalyani Group and additional investment opportunities had been identified as a follow up investment in either incremental capacity or as ownership of wind farms. Glenn Payne, Director at First Reserve, said the combination of superior design and performance with secure component supply from a low cost manufacturing base puts Kenersys in an outstanding position to meet the shortage of wind turbine capacity in the world today. ?We believe that Kenersys will quickly emerge as a leader in the turbine manufacturing industry,? Payne said
Kenersys, with its design set-up in Germany and two operating companies in Germany and India, will initially focus on assembling and marketing turbines in Europe and Asia Pacific.