Mumbai: Growth market-focused alternative investment firm Actis said India is one of its core investment markets where it has committed nearly a billion in the past 12 months, betting big on a fresh wave on renewable energy and continued advancement in fintech and consumer businesses compared to other emerging market peers.
The UK-based firm, which invests out of its global pool of capital, has invested $450 million in the alternative energy space itself in the past year, and has indicated it will commit more capital to the world’s second most populous nation, where power consumption is expected to outpace growth in GDP. Also, with the government trying to make India the world leader in renewable energy, it makes the country one of the best investment themes among the emerging market economies.
Actis recently raised $2.7 billion to invest in the energy space and is expected to make larger allocation to India, its top official said.
"Over the past 12 months, we have committed $950 million in India and that tells you that India is pretty attractive on a global basis. If you look at the Indian market, and if you look at the shift in the power side — the implosion of power sector from thermal coke and the unavailability of requisite gas to run the power plants — and you combined that with the government’s ambition to be a leader in the renewable space, it’s a fantastic investment opportunity in a space where we are a leader,” Torbjorn Caesar, senior partner at Actis, told ET in an interview.
“Whatever the growth in GDP, we believe the growth in electricity consumption will grow much higher than that. India is one of the most attractive markets at this point in time,” he said.
Ostro Energy, the renewable energy platform launched by Actis in 2014, was sold to Sumant Sinha-led Renew Power Ventures for an enterprise value of Rs 10,800 crore ($1.66 billion), the biggest M&A deal in the renewables sector, in April this year. From 50MW capacity, Ostro was grown to a producer of $1.1 GW of renewable energy under Actis.
View all SMART GRID Bulletins click here