Reliance Industries Limited (RIL) on Sunday acquired Norway-headquartered solar module maker REC Solar Holdings (REC Group) for an enterprise value of $771 million (around Rs 5,800 crore) from China National Bluestar. REC Group is a leading international solar energy company for pioneering innovations. It is known for its high-efficiency, long-life solar cells and panels for clean and affordable solar power.
Speaking about the acquisition, RIL chairman and managing director Mukesh Ambani said, “I am immensely pleased with our acquisition of REC because it will help Reliance tap the unlimited and year-long power of Soorya Dev, the Sun God, that India is fortunate to be blessed with."
Norway’s REC Group has an annual solar panel production capacity of 1.8 gigawatts (GW). Incorporated in 1996, REC Group is one of the biggest player in the market. It has installed around 10GW capacity globally till now. The Norway company has regional hubs in North America, Europe and Asia-Pacific.
It was the first to introduce half-cut passivated emitter and rear cell (PERC) technology, which is adopted by all major manufacturers. Its range of solar modules are recognised as among industry leaders in efficiency, reliability and long guaranteed life. REC has over 600 utility and design patents, of which 446 are granted and balance are under evaluation.
“Reliance’s deep expertise of scale, project execution and operational excellence coupled with REC’s technology will facilitate the establishment of state-of-the-art next-generation fully integrated PV manufacturing facility at Dhirubhai Ambani Green Energy Giga Complex and subsequently replicate such complexes around the world," said the statement.
“In India, Reliance plans to use this industry leading technology in their fully integrated, metallic Silicon to PV panel manufacturing giga factory at Dhirubhai Ambani Green Energy Giga Complex, Jamnagar initially starting with 4 GW per annum capacity and eventually growing to 10 GW per annum," said RIL’s statement on Sunday.
“This will constitute the largest contribution by a single company to Honourable Prime Minister Shri Narendra Modi’s target for India to produce 450 GW renewable energy by 2030. It will enable India to become a world leader in green energy transition to overcome the climate crisis," Ambani said.
“Together with our other recent investments, Reliance is now ready to set up a global scale integrated Photovoltaic Giga factory and make India a manufacturing hub for lowest cost and highest-efficiency solar panels. We will continue to invest, build and collaborate with global players to achieve the highest reliability, efficiency and economies to deliver high-quality, reliable power at affordable prices to our customers both in India and markets worldwide," Ambani said.
This acquisition will “enable India to become a world leader in green energy transition to overcome the climate crisis", added the RIL chairman and MD.
RIL said REC has more than 1,300 employees globally and they will become proud members of the Reliance family after the successful completion of the transaction and become an integral part of the team that is driving one of the world’s most ambitious mission to drive green energy transition.
“Reliance will strongly support for REC’s planned expansions including 2-3 GW Cells and Module capacity in Singapore, brand new 2 GW Cells and Module unit in France and another 1 GW Modules plant in the US," said RIL’s statement.