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Is Tata Adani copying Reliance?

by Everydays Journal
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Several Tata companies have come together to create an EV (Electric Vehicle) ecosystem. Tata Power has committed an investment of $9.5 billion for its renewable energy business. Come learn more

When someone visits the website of Tata Power, one of India’s foremost integrated power companies and part of the $311 billion Tata Group, they are greeted with a banner that tells customers about renewable energy and ‘do. Green encourages adoption. In fact, going green is at the forefront of most businesses’ plans for the future, including India’s top business conglomerates such as Reliance Industries and Adani Group.

The Tata Group is also transitioning towards sustainability across all businesses and will soon announce its goal of becoming carbon neutral.

Realizing its dangers, India has also promised to cut emissions, as the world has promised efforts to curb global warming. More recently, Prime Minister Narendra Modi committed for the world to achieve the climate goals by 2030, and large groups sniffed the business opportunities in this campaign.

Tata Motors said in October last year that it would create a new subsidiary for its electric vehicle business and invest $2 billion in new models, dedicated battery electric vehicle platforms, charging infrastructure and battery technologies.

The EV unit raised $1 billion from TPG’s Rise Climate Fund and Abu Dhabi State Holding Company ADQ at a valuation of $9.1 billion.

With its Nexon and Tigor models, Tata Motors dominates EV sales in India with 70% market share. It is also developing hydrogen fuel cell-powered buses.

Chairman N Chandrasekaran recently said that the group is planning to manufacture batteries for electric vehicles as part of a broader plan to be “future-ready” by investing in renewable energy, hydrogen, storage solutions and the circular economy. Is.

In 2019, Tata Chemicals operated a pilot plant for recycling Li-ion batteries. Last week, Tata Power said it would spend $9.5 billion over the next five years to expand the capacity of its renewable energy business and increase its stake in the overall portfolio from 34% to 60%.

The company holds a strong leadership position in various renewable sub-segments including Solar EPC, Solar Pump and EV Charging. It is also setting up a 4GW solar cell and module manufacturing plant in Tamil Nadu with an investment of $380 million.

Speaking to Business Standard, Mayuresh Joshi, Head of Equity Research, William O’Neill India, says that Tata Power is no exception in making huge green capex plans. It maps the vision and ESG norms of the government. Actually, every company is taking carbon neutrality seriously.

The Tata group’s move will give it a competition from Mukesh Ambani’s Reliance Industries, which earlier this year announced plans to invest $76 billion for clean energy projects. Reliance wants to create a fully integrated end-to-end renewable energy ecosystem. The company will set up four ‘Giga factories’ to manufacture integrated solar PV modules, hydrogen electrolysers, fuel cells and batteries to store energy from the grid. Given that Reliance has limited expertise in the technology needed for such construction, it has invested more than $1.5 billion in new energy partnerships and acquisitions over the past year.

Reliance will be in a race with the Adani Group to become the world’s largest as well as the cheapest producer of green hydrogen. Led by India’s richest man Gautam Adani, the group of the same name has committed to invest $70 billion in its green energy value chain by 2030 as it aims to become the world’s largest renewable energy producer.

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