Mahindra Susten aiming for fastest billion in the group

Looks at putting up 1 GW solar energy capacity along with another 3 GW of third party projects through EPC orders

Mahindra Susten, a renewable energy entity, promoted by the private equity (PE) arm of the Mahindra Group, aims to achieve $1 billion (Rs 6,200 crore) annual turnover over three years. This is $150-200 million (Rs 930-1,250 crore) at present. It wants to put up 1 Gw of solar energy capacity, along with another 3 Gw of third-party projects through engineering, procurement and construction (EPC) orders.

It expects to have 350 Mw of EPC installations by the end of 2015 and is looking at consolidating its solar energy base in Gujarat, Rajasthan, Andhra Pradesh, Telangana and Madhya Pradesh.

“We want to be the fastest $1 billion in the group and be the largest green and sustainable energy company,” Parag Shah, managing partner at Mahindra Partners, the groups's PE arm, told Business Standard.

The portfolio would have wind and solar energy, energy efficiency and 'green' buildings. Mahindra Susten was recently created, after merger of Mahindra Solar and Mahindra EPC. The company has 90 Mw of solar power commissioned and a little over 250 Mw under implementation.

It has one five-Mw project under the first phase of the Jawaharlal Nehru National Solar Mission and another 33 Mw in the second phase. And, 40 Mw under the solar energy missions of Andhra Pradesh and Telangana. Basant Jain, chief executive, said the current concept of efficiency was limited to large companies but at Machinepulse, one of their divisions, they were focusing on individuals and households, too.

At Machinepulse, the company develops software solutions involving analytics.

He said with the support of government efforts, solar energy rates had come down and were comparable with conventional power. “If you take into account transmission and distribution losses, solar is already at grid parity,” said Jain.

Shah said the total size of projects to be undertaken would be about Rs 4,500 crore, involving an equity infusion of about Rs 1,200 crore. He said whether it was the government’s Make in India programme or Clean India or Digital India, the company was present in all these.