Rajalakshmi Automobiles managing director Abhay S Meganathan confirmed to Business Standard that the group purchased 75% holding in Ashok Leyland Wind Energy, which was earlier owned by Ashok Leyland and Hinduja Foundries.
The balance stake will currently be held by the existing promoters, and the company’s name will be changed following completion of the transaction, Meganathan added.
Last week, Ashok Leyland announced the sale of its stake in Avia Ashok Leyland and Ashok Leyland Wind Energy, but withheld the name of the purchasing company.
Ashok Leyland Wind Energy focuses on development, operation and maintenance of wind farms.
Having already lined up new projects worth INR 11bn ($176.9m), Rajalakshmi group also intends to add 137MW of wind power, 53MW of solar generation capacity, in addition to operating and maintaining renewable energy projects.
The group is expected to collaborate with investors, including private equity and institutional investors to fund future expansion.
Meganathan said: "The group is receiving a lot of overtures from institutional investors for co-investing in the group’s wind and solar ventures. We will go with one or two of them."
The company believes that it is the appropriate time to invest in renewable energy as Tamil Nadu Government is looking to strengthen electricity infrastructure.
