India-based Rajalakshmi Group is expanding its renewable energy portfolio by acquiring the majority stake in Ashok Leyland’s renewable energy unit.
The Business Standard reported that the company had bought 75% stake in Ashok Leyland Wind Energy.
This announcement comes a week after Ashok Leyland divested stake in Avia Ashok Leyland and Ashok Leyland Wind Energy to an undisclosed company as a part of its restructuring programme that involved divesting most of its non-core assets.
The Rajalakshmi group operates engineering and technology colleges. It bought 63MW of wind power from Ashok Leyland for $27.33m with the aim of increasing its wind power capacity to 200MW and also to put up no less than 53MW of solar in Tamil Nadu over the next four years, reported Deccan Chronicle.
Rajalakshmi Automobiles managing director Abhay Meganathan told the Business Standard that after the completion of the acquisition, the company will be known by a new name and that for now, existing promoters will hold the balance stake in the company.
The company already possesses 750 acres of land in Tamil Nadu and plans to look for more land in Andhra Pradesh and Karnataka.
Apart from the current acquisition, the group is also planning to add 137MW of wind power and 53MW of solar generation capacity as a part of its $176.85 (Rs1,100cr) investment in new projects.
It is also planning to operate and maintain renewable energy projects.