Grasim unit buys Shell's Solenergi Power for $1.8bn

Aditya Birla Renewables, a unit of Indian conglomerate Grasim Industries, has agreed to acquire 100% of Solenergi Power from Shell and Global Infrastructure Partners (GIP), a BlackRock subsidiary. The enterprise value of the transaction stands at Rs 17,200 crore, or roughly $1.8 billion. Solenergi, incorporated in Mauritius, acts as the holding company for renewable operators Sprng Energy and Sprng Solar Plus.

The acquisition instantly transforms the buyer's footprint in the sector. Solenergi brings a contracted renewable energy portfolio of nearly 5 GWp, split between 3.3 GWp of operational assets and 1.7 GWp under construction. The target generated consolidated revenue of Rs 1,253.4 crore in FY25, up marginally from Rs 1,156.5 crore in FY23.

Upon closing, Aditya Birla Renewables will see its total portfolio surge from 4.4 GW to 9.4 GW. This leap advances the company toward its stated goal of building 20 GW of renewable capacity over the next three years. For Grasim, the deal represents a major capital deployment into green energy as traditional industrial groups pivot away from carbon-intensive businesses.

Kumar Mangalam Birla, Chairman of the Aditya Birla Group, said the deal "brings together two highly complementary platforms and marks a significant milestone in the evolution of Aditya Birla Renewables." He noted that the combined entity will possess a diversified portfolio and a strong development pipeline, "putting it on track to scale beyond 20 GWp in the coming years."

The strategic logic relies heavily on blending different customer profiles across the power market. Aryaman Vikram Birla, a Director at the group and the renewables unit, said the "integration of Sprng Energy's utility-scale portfolio with Aditya Birla Renewables' commercial and industrial capabilities will strengthen and improve the resilience of the combined platform." He highlighted that the target brings "a high-quality asset base, creditworthy off-takers and strong contracted cash flows."

The transaction also marks a notable exit for Shell from this specific Indian renewable asset, transferring it to a domestic industrial heavyweight. Grasim shares have gained 12% over the past year and doubled over a five-year period.