Global investment firm KKR and Hero Group will invest $450 million (around `3,588 crore) in Hero Future Energies, the renewable energy arm of the Indian company, the two sides said on Tuesday.
The investment will position Hero Future Energies (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 statement said.
Through its range of solutions, HFE will also look to support companies in their efforts to decarbonise and transition towards sustainable energy sources to achieve their net zero emission goals.
Founded in 2012, Hero Future Energies is a leading independent power producer in India, with a diversified portfolio of 1.6 GW of operating solar and wind projects.
Hardik Shah, partner at KKR, said, “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.” KKR makes its investment from its Asia Pacific Infrastructure Fund.
Rahul Munjal, chairman & managing director of Hero Future Energies, said, “With this investment, HFE will work to accelerate India’s energy transition.”
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 23 GW, as of December 31, 2021.