Masdar buys stake in Hero Future of India

Abu Dhabi Future Energy Company, Masdar, has made a strategic investment in India’s Hero Future Energies company, as it looks to expand it operations beyond the UAE.

The company did not disclose the size of its stake in HFE, or the amount invested, but its deal follows on from an initial $125 million (Dh458.8m) investment made two years ago in the Indian company by the International Finance Corporation, the development finance arm of the World Bank.

Hero Future Energy is a division of the Munjal Family’s Hero Group, whose main focus is motorbike manufacturing in Asia’s third-largest economy.

HFE currently has a portfolio of 1.3 gigawatts worth of wind and solar projects, with a further 1.5GW either planned or under construction.

The bulk of its existing operations are in India, but it is also targeting international expansion.

It expects about 25 per cent of its growth to come from international markets, including the UK, Europe, Bangladesh, Singapore, Vietnam, the

Philippines and Indonesia. It is also looking to develop 5GW of installed capacity by 2022.

“Hero Future Energies and Masdar are ideal long-term strategic partners,” said Rahul Munjal, HFE’s chairman and managing director. “We have clear alignment in our core ambitions.

“We are committed to advancing the development, commercialisation and deployment of cutting-edge renewable power solutions.”

Hero Future Energy is a division of Hero Group, whose main focus is motorbike manufacturing

Masdar is a wholly-owned unit of Abu Dhabi’s strategic investment arm, Mubadala Investment Company. The clean-tech operator has already invested in a range of renewable energy projects in the UAE, Jordan, Mauritania, Egypt, Morocco, the UK, Serbia and Spain.

The company announced an investment in a $100 million solar project in Uzbekistan at the weekend.