India, Solar

Kolkata buys Shell’s solar business in India and Sri Lanka

November 2, 2007 (Economic Times) – Here’s another global Indian takeover story. Little known Kolkata-based company, Environ Energy-Tech Service on Thursday announced the acquisition of Netherlands-based Shell’s solar energy businesses in India and Sri Lanka for an undisclosed sum.

The Rs 35-crore, closely-held Environ Energy-Tech has routed the global acquisitions through its mint fresh Singapore-based SPV, Environ Energy Global. Company sources hinted that Environ would shift its headquarters to Singapore in the near future for managing its global business.

The actual deal details remain hazy, but financial circles close to the development are pegging the transaction in the region of $100 million (about Rs 400 crore). Environ’s director Jyoti Poddar, however, declined to confirm this.

“Environ has acquired 100% in Shell Solar India and Shell Solar Lanka from Shell Overseas Investment BV, the holding company of global oil giant Shell. We are bound by a confidentiality agreement with Shell. So, I am unable to provide any further details of the deal,” Mr Poddar told ET.

Shell’s overall revenues are in excess of $319 billion (over Rs 12.5 lakh crore). Shell Solar India and Shell Solar Lanka have a collective turnover of a modest Rs 75 crore.

Environ claims the company had to jostle with some of the top names in the global renewable energy space in the UK, Germany and US to acquire 100% of Shell Solar India and Shell Solar Lanka. Environ’s acquisitions were partly funded by a couple of European banks and internal accruals.

The three-and-a-half year old Environ was set up with a capital of Rs 10 crore. The company, however, is confident of servicing the bank loan with its future income. “There are huge opportunities in the solar energy space. The country has the potential to produce 5,000 mw of solar energy per annum. Each 1,000 mw of generation triggers business opportunity of Rs 10,000 crore,” claimed Mr Poddar.

Environ also claims it will become the largest photovoltaic panel-based solar solutions company worldwide following these dual-acquisitions. “With this, the company has acquired a business of Rs 75 crore, taking its total turnover to Rs 110 crore,” according to Mr Poddar.

Environ is slated to retain the 440-odd Shell engineers at the Indian and Sri Lankan solar energy units. Its employee strength will, accordingly, rise to 560 from the current level of 100.

While the acquisition in India would consolidate Environ’s position in the country’s renewable energy space, Mr Poddar felt the acquisition in Sri Lanka would spur the company’s efforts to expand operations to Vietnam, Indonesia, Philippines, Africa and Europe.

“We expect to achieve a turnover of Rs 150 crore by March 2008,” he said. The company also intends to take the acquisitions route to grow. “We are likely to acquire two more solar energy companies in Asia and Europe,” said Mr Poddar. The company is also in the final stages of commissioning a manufacturing unit in West Bengal.

The global oil giant Royal Dutch Shell, in turn, appears to be slowly exiting the solar energy business. It had earlier sold off its solar units in US, Germany, South Africa and Singapore to Germany’s SolarWorld AG. Shell now has solar operations only in the Philippines, China and Indonesia.


5 thoughts on “Kolkata buys Shell’s solar business in India and Sri Lanka

  1. N C Jana says:

    our ancestors realised the power of sun and formed the ritual of surja pranam at the start of the day. we also now reliase that sun is the ultimate source of energy for mankind.

    There is huge scope of harnessing the solar energy in India whcih has not developed much due to different reason including the cost of solar installation. But with the technology innovation and mass production the cost of spv & csp is coming down to manageable figures ie approaching to that of standard utility.

    Till that happen the GOI should implement the FIT for accelerating development of solar projects. Increase production volumes will bring down the cost. If the production units are in India there will be advantage of cheap labour. I hope Environ Energy Tech to have mass production units in India for domestic and international markets
    n c jana

  2. Ashraf says:

    Dear sir,

    We are searching for e-mail & website of ENVIRON ENERGY-TECH SERVICE , kolkata, India. Would please let us know .




  3. What a clever post! I did a of blogging for dummies over on one of the CPA Marketing forums and I thought it was too simple for them, but the sum of emails I got asking questions just like what you addressed was unbelievable. As young people today we have grown up with computers, but it’s easy to forget that even individuals just a a couple of years older have not! Really good post! 🙂

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