Billionaire Birla to Buy Shell’s Indian Renewables Unit

A unit of billionaire Kumar Mangalam Birla’s conglomerate agreed to buy Shell Plc’s renewable energy assets in India for an enterprise value of 172 billion rupees ($1.8 billion) in one of the largest clean energy deals in the country.

(Bloomberg) — A unit of billionaire Kumar Mangalam Birla’s conglomerate agreed to buy Shell Plc’s renewable energy assets in India for an enterprise value of 172 billion rupees ($1.8 billion) in one of the largest clean energy deals in the country. Aditya Birla Renewables Ltd. will acquire 100% of Solenergi Power Pvt.

to get control of its 5-gigawatt portfolio in the country, the Indian company said in a statement Monday. Solenergi owns Sprng Energy, which operates Shell’s renewables assets in India. The deal will be funded through a mix of debt, and equity to be infused by Aditya Birla Renewables’ parent Grasim Industries Ltd. and Global Infrastructure Partners, according to the statement.

The transaction is part of Shell’s retreat from renewable energy to focus on higher returns from its fossil fuels business. The British energy giant has put on the block its onshore renewables business in Europe and is preparing to sell its offshore wind farms. “This agreement reflects Shell’s continued focus on adjusting the portfolio in our power business,” said Machteld de Haan, President, Downstream, Renewables and Energy Solutions at Shell.

“This is another step in building a more focused, competitive and resilient business while improving returns.” The acquisition expands Birla’s renewables unit’s capacity and widens its customer base. Aditya Birla Renewables has a portfolio of about 4.4 GW, it said in the statement, without disclosing how much of that is operational.

The acquisition will rapidly accelerate the company’s ambition to build a national‐scale renewable platform, Aryaman Vikram Birla, director at Aditya Birla Group and head of Aditya Birla Renewables, said in the statement. “Having nearly achieved our 10 GW target ahead of schedule, we are now on track to double capacity in the coming years,” he said, including the Sprng Energy portfolio. “This step‐up reflects not only scale, but a sharper focus on quality, execution and long‐term value creation.”

Sprng Energy has about 3.3 GW of operational capacity, while roughly 1.7 GW is under construction. Shell, which had acquired the unit from Actis for $1.55 billion in 2022, started working with an adviser last year on a potential sale. The transaction is expected to complete by the end of 2026, subject to regulatory approval and closing conditions, according to Shell.

—With assistance from Keira Wright. (Updates with comments from Shell in paragraph five)