India’s Kalyani Group to sell wind energy stake to PE – report

According to Reuters, the stake is likely to sell for $300 million and Kenersys hopes to complete the transaction by the end of the current financial year.

Kenersys designs and manufactures wind turbine generators. First Reserve invested in the company in 2008.

Private equity investment in India's cleantech sector topped $500 million in 2011, more than double the previous year's total, with a sizeable portion going into wind power-related assets.

Goldman Sachs' private equity arm committed INR10 billion ($202 million) for a majority stake in start-up ReNew Wind Power, one of the largest cleantech investments ever seen in the country. This was followed by Standard Chartered providing $75 million in funding to Greenko, a TPG portfolio company that earlier agreed to invest $115 million in wind farms alongside General Electric. TPG first backed the Greenko in 2010.

The momentum has carried into 2012, with Morgan Stanley Infrastructure Partners paying INR12 billion for a majority stake in Continuum Wind Energy in June. The company was created through the acquisition of assets from Vestas.

At 16,000 megawatts, India's wind power capacity is said to be the fifth-largest in the world, although Greenko estimates that the country has harnessed less than 25% of its wind energy potential. It is the third-largest market globally for new wind park installations after China and the US.

India, which suffers from a peak-hour power shortfall of about 10%, aims to add 88,000 MW of generation capacity based on fossil fuels and hydro during 2012-17, and another 29,800 MW capacity based on renewable energy sources during the same period.

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• Topics
• Cleantech
• South Asia
• Expansion
• Exits
• Exit
• Growth capital
• India
• Cleantech
• First Eastern Investment Group