Ghodawat Group lines up major expansion in renewable energy sector

Maharashtra-based Sanjay Ghodawat group is planning to focus more on renewable enery and agriculture business this fiscal,with major expansion plans in the pipeline.

The group has earmarked an investment of Rs 2,000 crore over the next five years, a major chunk of which will go into the group’s renewable, FMCG and agro business.

The group is also looking at expanding its business network in the eastern and north eastern region, especially in states like West Bengal, Orissa, which have a lot of potential in the renewable energy sector.

“This fiscal we plan to focus and heavily invest in FMCG, renewable energy and agri-business. These will be our major focus areas and major revenue earners this fiscal,”said Shrenik Ghodawat, managing director, Ghodawat Energy Limited.

Ghodawat Energy Limited, the renewable energy arm of the group, has already installed four major wind farms with a total collective capacity of 100 mw in Maharashtra, Gujarat,Karnataka and Rajasthan with a total investment of Rs 500 crore approximately.

“In India of the total 17,000 Mw of installed renewable energy capacity, some 10,000 Mw comes from wind energy alone. We see huge potential in this sector, and we plan to invest heavily in this sector,” said Ghodawat.

The company plans to set up a total of 200 mw of installed wind capacity by the end of 2013.

"By next year we hope to place in at least 25 Mw installed wind capacity," he added

Of the Rs 2,000 crore. The group will spend Rs 400 crore in manufacturing 1.65 Mw wind turbines to be sold to both domestic power producers and exported to South and South East Asia, Africa and Middle East.

The group funds all its projects on a 70:30 debt equity ratio and has already tied up funds for this year, said Ghodawat.

The group at present has a presence in states like Karnataka, Gujarat, Madhya Pradesh and the entire north west region with a stronghold in Maharashtra, but has not yet forayed in West Bengal or any eastern states.

“We are not there in eastern and north eastern states, with our capacity expansion plans and major focus on renewables this fiscal we would definitely look at bigger markets and states like West Bengal,”said Ghodawat.

In future the group plans to foray into other verticals in renewable energy like solar and hydel.

"We are looking at low cost technologies in solar, and working closely with our consultants, we will foray into solar power manufacturing if we get the technolgies in place," said Ghodawat.

The group turnover last fiscal was Rs 1,000 crore, this fiscal the group is eyeing Rs 1,500 crore turnover.