Will invest $400 million in Serentica Renewables: KKR
BENGALURU: KKR & Co. Inc. will invest $400 million (about ₹3,266 crore) in billionaire Anil Agarwal-backed Serentica Renewables, underscoring the US private equity firm’s growing bets on the clean energy sector in India.
The investment will be made as part of KKR’s Asia Pacific Infrastructure strategy, the companies said in a joint statement on Tuesday.
Serentica is a decarbonization company that seeks to provide complex clean energy solutions for energy-intensive industries.
Established in 2022, Serentica is wholly-owned by Twinstar Overseas Ltd, which is owned by Agarwal’s Volcan Investments Cyprus Ltd. Twinstar Overseas also owns controlling stakes in Sterlite Power Transmission Ltd and Sterlite Technologies Ltd.
Gurugram-based Serentica is focused on industrial decarbonization, by making renewables the main source of energy for commercial and industrial users who use over half of the electricity generated in India. Serentica aims to provide assured renewable energy through a mix of solar, wind, energy storage and balancing solutions.
“Our investment in Serentica reflects KKR’s confidence in India’s renewables sector and our commitment to advancing the energy transition in India. Energy-intensive, heavy-industry companies play an important role in society but have traditionally faced more challenges in meeting energy needs sustainably. With Serentica, we look to support these companies in their decarbonization objectives..,” said Hardik Shah, partner at KKR.
Since 2011, KKR has deployed over $15 billion globally to invest in renewable assets such as solar and wind with an operational power generation capacity of 23 GW as of December 31, 2021.
In Asia Pacific, KKR sees renewables as core to its infrastructure strategy. In 2020, it set up Virescent Infrastructure, a renewable energy platform to own and operate renewable assets in India. KKR’s most recent deal in India’s renewable sector was a $450 million investment in Hero Future Energies, the renewable energy arm of New Delhi-based Hero Group. Standard Chartered Bank acted as the sole financial advisor to Serentica for the transaction.