In Hero Future Energies, Hero Group And KKR Will Invest $450 Million
Hero Future Energies (HFE), the company's renewable energy division, will get an investment of $450 million (around 3,600 crore) from Hero Group and the American private equity firm KKR.
Hero Future Energies is a ten-year-old business with operations in the UK, India, Bangladesh, Vietnam, Singapore, and Ukraine. It offers a broad range of green hydrogen, solar, wind, and other renewable energy technology. Its operational solar and wind power plants total 1.6 GW.
“HFE’s clean energy solutions play an important role in helping companies decarbonize as energy demands continue to grow. We look forward to working closely with HFE’s management team and existing investors, including the Hero Group and IFC, to help HFE achieve its next phase of growth and contribute to the energy transition efforts in India and globally,” stated Hardik Shah, partner at KKR.
The International Finance Corporation and Abu Dhabi Future Energy (commonly known as Masdar) purchased a 20% stake in HFE for $150 million, valued at $750 million, prior to KKR's investment. With KKR's investment, HFE is now valued at $1 billion.
Rahul Munjal, chairman and managing director of HFE, said, "With this investment, Hero Future Energies will work to accelerate India's energy transition and contribute to the Indian government's aim of generating half the country's power from non-fossil fuel sources by 2030."
With an operational capacity of 23 GW at the end of 2021, KKR has invested over $15 billion in a number of companies in the renewable energy sector since 2011.