Reliance Natural Resources Limited
Reliance Natural Resources Limited is an Indian energy company involved in sourcing, supply and transportation of gas, coal and liquid fuels. The company was incorporated on 24 March 2000 and went public on 25 July 2005. It is a part of the Reliance Anil Dhirubhai Ambani Group. Reliance Natural Resources has merged with Reliance Power.
The proposed merger is subject to approvals of the shareholders of R-Power and RNRL, the stock exchanges, the High Court here, and all other requisite permissions, sanctions and approvals, it said. The merger will take the market capitalization (m-cap) of R-Power to a little over Rs.52,000 crore. Its m-cap was Rs.41,979 crore at the close of trading on Friday and that of RNRL was Rs.10,394 crore. R-Power will retain the assets and people of RNRL, a company with a turnover of Rs.298 crore, and continue to do business in the areas pursued by it, people close to the development said. After the merger, the company’s net worth will exceed Rs.16,000 crore and it will have 600,000 shareholders. The net worth of RNRL is Rs.1,900 crore, the statement said. However, the combined market value of the two ADAG firms does not compare well with the Rs.1.23 lakh crore m-cap that R-Power commanded on February 11, 2008 — the day it got listed on the stock market after a Rs.11,500-crore initial public offer, the biggest IPO in India’s history.
The Anil Dhirubhai Ambani Group’s (ADAG’s) gas transportation company, Reliance Natural Resources Ltd (RNRL), will merge with sister firm Reliance Power (R-Power) in a Rs.50,000-crore, all-stock deal. The board of directors of the two companies, in meetings held today, approved a swap ratio of 4:1, meaning RNRL shareholders are to get one R-Power share for every four they hold. The ratio is based on the valuation made by consultancy firm KPMG, a statement issued by the two companies said.
The listing saw R-Power catapulting into the elite league of Rs.1-trillion companies, with the scrip touching an intra-day high of Rs.599.90. However, it soon slipped below the IPO price of Rs.450 a share, making its membership in the Rs.1-trillion (Rs.1 lakh crore) m-cap group short lived.
The merger will accelerate R-Power’s plans to set up a 10,000-Mw gas-based power plant, set in train with its Gas Supply Master Agreement with Mukesh Ambani’s Reliance Industries Ltd (RIL) last week. “The move will help R-Power accelerate its backward integration plans from a pure thermal power generation company to quickly venture into other value chains of energy business,” said an industry observer.
R-Power, currently with about 1,000 Mw of generation capacity, plans to implement about 37,000 Mw of power projects. RNRL’s shareholders, about 80 per cent of them also shareholders of R-Power, will now get an opportunity to join the latter’s power dreams. Over 80 per cent of RNRL shareholders had received their shares free on the demerger from RIL in 2006, as part of a settlement within the Ambani family.
Sources said the move would also make R-Power a domestic power company with one of the largest coal reserves. It has about four billion tones of coal reserves in Indonesia and India. RNRL has 45 per cent interest in four coal-methane blocks, spread over 3,251 sq. km and estimated resources of 193 billion cubic meters, and a 10 per cent share in an oil and gas block in Mizoram, with an acreage of 3,619 sq. km and reserve potential of up to 28 bn. cu m. Mukesh Ambani-led Reliance Industries Limited (RIL) will invest up to $50 million in Breakthrough Energy Ventures IILP, the company said in a regulatory filing on November 12. Breakthrough Energy is newly incorporated under Delaware state laws. The capital contribution will be for a limited partnership with the US-based firm and will be done in tranches over the next 8-10 years. "The capital contribution commitment of US$ 50 million constitutes 5.75% of the size of the fund contemplated at present. The said investment will be made in tranches over the next 8-10 years," RIL said in the statement. According to the agreement, Breakthrough Energy will invest the funds raised from the investors to support innovation in clean energy solutions. It expects to provide good returns to the investors, the statement added.
Though the deal between Reliance and BEV has been made, the transaction is subject to approval from the Reserve Bank of India. Reliance has further informed that the investment does not fall within related-party transactions and none of RIL’s promoters, or promoter group or group companies have any interest in the transaction. In December 2016, Mukesh Ambani had joined hands with Jeff Bezos, Jack Ma and Bill Gates to set up BEV. The deal of $1 billion was signed to fight climate change through innovations in clean energy.
Energy-to-telecom major Reliance Industries NSE 0.31 % on Thursday said that it will invest up to $50 million (Rs.371 crore) in Breakthrough Energy Ventures NSE 14.29 % II LP (BEV). The Group is spearheaded by Microsoft Founder Bill Gates. “The capital contribution commitment of $50 million constitutes 5.75 per cent of the size of the fund contemplated at present. The said investment will be made in tranches over the next 8-10 years,” RIL said in a regulatory filing. BEV seeks to find solutions to the climate crisis by flexibly investing to develop breakthrough energy and agriculture technologies. The company will invest the funds raised from the investors to support innovation in clean energy solutions. The results of these efforts would have significant relevance for India and are expected to benefit the entire mankind and also provide good returns to the investors, RIL said. The transaction is subject to approval from the Reserve Bank of India. The investment does not fall within related party transactions and none of RIL’s promoter or promoter group or group companies have any interest in the transaction.
A day after the merger approval of Reliance Capital with RCVL, Anil Ambani-controlled Reliance Energy Ltd on Tuesday approved the merger of Reliance Energy Ventures Ltd (REVL) with itself for which the share swap ratio has been fixed at 7.5:100. The board of directors have approved the scheme of amalgamation, which entails a share exchange ratio of 7.5 share of Reliance Energy for every 100 share of Reliance Energy Ventures following the demerger scheme announced by Reliance group. REL informed the Bombay Stock Exchange that the share exchange ratio is based on the number of shares of the company held by REVL, as it was valued by global management consultancy firm KPMG. The shares of the company held by REVL will be cancelled under the proposed scheme of amalgamation.
The fully diluted equity capital of the company will remain at approximately Rs,228 crore, it said. The proposed scheme comes as a bonanza for 23 lakh shareholders of Reliance Industries, who will be entitled to free shares of four Anil Ambani group companies. This will lead to enhancement of their value, elimination of dual listing of the company and RCVL. The other benefit of the merger include elimination of potential "holding company" discount through REVL market price, increased liquidity for all the company's shareholders and wider domestic and international shareholder base for the company, it said.
The proposed scheme of amalgamation is, inter alia, subject to the approvals of the Board of REVL, the shareholders of the company and REVL, the stock exchanges, the Mumbai High Court and all other requisite permissions, sanctions and approvals.
Tata Power Solar
Tata Power Solar Systems Limited, formerly Tata BP Solar, is an Indian company that specializes in solar energy services. The company manufactures solar modules, solar cells, and other solar products, and provides EPC services for solar power projects.
Tata Power Solar, with 25 years of deep domain expertise, is one of the pioneering solar manufacturers in the world and India’s largest specialized EPC player. Founded in 1989, the company was originally formed as a joint venture between Tata Power and British Petroleum Solar (BP Solar). As a pioneer and market leader in the solar space, headquartered in Bangalore, Tata Power Solar now operates independently as a wholly owned subsidiary of Tata Power. As one of the largest solar manufacturers in India, Tata Power Solar operates world-class manufacturing unit in Bangalore, with a production capacity of 300 MW of modules and 180 MW of cells. It has completed more than 320MW of ground-mount utility scale and 117MW of rooftop and distributed generation projects across the country till date. It also offers a diverse line of solar solutions for both urban and rural markets –these include rooftop solutions, solar pumps and power packs among others. Tata Power Solar is committed to enabling solar everywhere and aims to provide energy access to millions of people across the country via its integrated solar solutions
In February 2017, Tata Power Solar became the first Indian company to ship over 1 GW solar modules worldwide. The company's manufacturing unit in Bangalore has a production capacity of 400 MW of modules and 300 MW of cells. Tata Power and BP Solar established Tata BP Solar, a joint venture company, in 1989. The company began commercial operations in 1991 by establishing its first manufacturing unit with a production capacity of 3 MW. Tata Power Solar (TPS), with 25 years of deep domain expertise, is one of the pioneering solar manufacturers in the world and India’s largest specialized EPC player. Founded in 1989 and headquartered in Bangalore, TPS is a 100% subsidiary of Tata Power Limited. The company was originally formed as a joint venture between Tata Power and BP Solar.
As one of the largest solar manufacturers in India, TPS operates three world-class manufacturing units in Bangalore, with a production capacity of 200MW of modules and 180MW of cells. It has completed more than 160MW of ground-mount utility scale and 40MW of rooftop and distributed generation projects across the country as of FY14. It also offers a diverse line of solar products for both urban and rural markets – these include water heaters, home lighting, street lighting, power packs, and water pumps among others. TPS is committed to enabling solar everywhere and aims to provide energy access to millions of people across the country via its integrated solar solutions.
BP Solar was closed on 21 December 2011, when BP announced its departure from the solar energy business. On 30 August 2012, Tata BP Solar India Limited was renamed as Tata Power Solar Systems Limited and became a wholly owned subsidiary of the Tata Group.
In August 2016, Tata Power Solar commissioned a 100 MW solar project at the NP Kunta Ultra Mega Solar Power Project in Anantapur, Andhra Pradesh. This was the largest solar project commissioned using domestically manufactured solar cells and modules at the time. Tata Power Solar is one of the largest solar rooftop EPC player in India with a market share of 5.6%.[10] The company completed the world's largest solar rooftop installation in August 2017. The rooftop project built on the cricket stadium in Mumbai, India will generate more than 1 million units and will reduce the power consumption by almost 25%.
Tata Power Solar won 105MWp bid of one of the largest floating solar plants in the world to be installed at NTPC Kayamkulam in Kerala.
Tata Power has announced its annual results for the financial year (FY) 2019-20. The company’s income statement said that in the FY 2020, its revenue declined by 3% and stood at ₹289.48 billion ($3.8 billion) as compared to ₹299.84 billion (~$3.9 billion) in the last financial year.
The company attributed the decline to lower power demand, delay in project execution in its solar engineering, procurement, and construction (EPC) business on account of COVID 19, and lower coal prices. The company’s consolidated earnings before interest, tax, depreciation, and amortization (EBITDA) was up by 15% at ₹83.17 billion (~$1.1 billion) as compared to ₹72.35 billion (~$962.2 million) last year. This was attributed to lower losses in its Mundra project, new capacity addition in the renewables segment, and steady performance across all businesses.
Notably, Tata Power Solar, Fourth Partner Energy, and Azure Power emerged as the top solar rooftop installers in India in the calendar year (CY) 2019, according to Mercom’s India Solar Market Leaderboard 2020.
The consolidated profit after tax (PAT) before exceptional items reduced by 3% at ₹12.31 billion (~$163.7 million) as against ₹12.74 billion (~$169.4 million) in the previous year. The company’s PAT before exceptional items for the quarter was ₹3.66 billion (~$48.7 million), up 13% as against ₹3.23 billion (~$42.9 million) during the same period last year. The net debt reduced by ₹13 billion (~$172.9 million) with further improvement expected from the sale of non-core assets and other initiatives. For the quarter ended March 31, 2020, the company’s consolidated revenue reduced by 9% at ₹68.81 billion (~$915.1 million) as compared to ₹75.97 billion (~$1.01 billion) in the corresponding quarter last year. The decline was mainly due to delays in project execution in its solar EPC business. The EBITDA for Q1 2020 was up by 6% at ₹20.13 billion (~$267.7 million) as compared to ₹19.01 billion (~$252.8 million) in Q4 FY 2019. The consolidated net profit was up 177% at ₹4.75 billion (~$63.2 million) as against ₹1.72 billion (~$22.9 million) during the corresponding period last year.
Commenting on the company’s performance, Praveer Sinha, CEO & MD, Tata Power, said, “All our businesses have performed exceptionally well. India is in a war-like situation in its fight against COVID-19. Taking stock of the situation, we mobilized our business continuity plan to provide uninterrupted power supply to ensure that citizens continue to comfortably work from home while medical staff, law enforcement agencies, and other essential services continue to serve the nation.”
“We are witnessing a drop in demand by almost 30% compared to 2019 in our distribution businesses. Though this impacts our top line, almost all our assets are under either regulated businesses or through fixed price long term contracts on a take or pay basis. So, in our business, the return profile covers our fixed costs and provides us assured returns,” he added.
The company continues to do well in the renewable energy business. As per the statement, Tata Power Renewable Energy (TPREL) now has nearly 700 MW of projects under implementation, and it has expended the rooftop solar link to 90 cities across India. The company added 318 MW of renewable energy capacity in FY 2020, and it has a solar EPC order book of ₹70 billion (~$930.9 million). In February 2020, the company had announced a net profit of ₹2.46 billion (~$34.5 million) during the quarter, up nearly 12% from the same period last year.
Also, Tata Power International Pte. Ltd, a wholly-owned subsidiary of Tata Power Company Limited, recently acquired a 10% equity stake in Adjaristqali Netherlands BV (ABV) from International Finance Corporation (IFC), the financial arm of the World Bank Group.
Tata Power Solar, India’s largest integrated solar company, has been rankedthe#1 rooftop player among EPC companies in the recently published India Solar Rooftop Map 2016report by BRIDGE TO INDIA, a leading cleantech consulting firm. According to the report, the total installed capacity in the rooftop segment is 1020MW as of September2016.In terms of market share, Tata Power Solar leads by nearly four times over its closest competitor in the market.
Tata Power Solar has installed nearly 40 MW of solar rooftops in the past year alone, with majority of their customers belonging to the industrial and commercial sector. Several milestone projects were commissioned in this period, including the world’s largest rooftop solar plant at RSSB-EESof12 MW setup in a single phase at a single location on multiple roofs.
Tata Power Solar Vs Reliance Natural Resources
Two of the country's largest power producers Tata Power NSE 1.27 % and Reliance Power NSE 1.64 % are betting big on renewable energy and will spend about Rs.1,500 crore each on clean energy projects this fiscal. While Reliance Power has big plans in the renewable energy segment with a special focus on solar, Tata Power said that all the new capacity that it is planning to add over the next two years, close to 800 MW, comprises clean energy projects in the wind, hydro, solar and waste-gasses space.
"Renewable energy is absolutely key for us, in fact we are the only utility in India to voluntarily say that 20-25 per cent of our asset capacity base will always be in the clean energy space, also our entire new capacity addition of 800 MW that will come online over the next two years is in the renewable space," said Anil Sardana, MD & CEO, Tata Power.
"We have already crossed the 500 MW milestone of renewable energy generation in India and our new projects are slated to come up in Gujarat, Maharashtra, Bhutan, South Africa and Zambia over the next two years," he added.
"With an operating renewable portfolio capacity of close to 100 MW and 125 MW nearing completion, the company has laid out grand plans to play a dominant role in the renewable energy segment," said Reliance Power in a statement to ET.
This comes at a time when the the ministry of new and renewable energy (MNRE)plans to set up giant solar projects in Rajasthan, Gujarat, Ladakh and Kargil. This is a part of the government's target of achieving 20,000 MW of solar capacity by 2020.
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