InoxGFL Group Plans To Funnel Rs10k Crore in Renewable Energy

According to a corporate official, the chemical and renewable energy giant InoxGFL Group intends to establish an independent power producing platform dubbed INOXGFL Renewable Energy (IGREL).

"The plan to set up a renewable IPP platform within the umbrella of the InoxGFL Group has been in the works for some time from the perspective that there's a significant amount of power requirement across our group companies and that the C&I (commercial and industrial) market is just exploding," said Devansh Jain, executive director, InoxGFL Group.

He said IGREL is looking to invest more than ₹10,500 crore over the next five years to build 1.5 GW hybrid renewable power capacity, as per economic times. 

"We are in discussions with multiple partners. ₹10,500 crore is the total capex for the platform. The debt-to-equity mix will be either 70:30 or 75:25," said Jain.

The group had an IPP company called Inox Renewables, which it sold in 2017 to Chennai-based wind energy startup Leap Green Energy for an unknown fee. "At that point in time, there were fairly high returns," said Jain, without elaborating. Inox Renewables possessed 260 MW of assets spread across Rajasthan, Maharashtra, Madhya Pradesh, and Tamil Nadu.

The renewable and chemical branches of the Inox Group now include three publicly traded companies: Gujarat Fluorochemicals (GFL), Inox Wind Energy (IWEL), and Inox Wind (IWL). IWL offers complete turnkey solutions. IWEL is the wind industry's holding company.

The association announced a merger between IWL and IWEL in June. According to the firm, the move would streamline the Inox Wind Group's structure by integrating the wind energy business activities under a single roof.