Su-Kam to seek investor approval to hive off solar power unit

Energy solutions provider Su-Kam Power Systems will seek the approval of investors Reliance Group and Temasek Holdings for a plan to hive off its solar business unit, a top company official said.

"We have already made a subsidiary -- Su-Kam Solar Energy Systems Ltd -- and are planning to seek approval from our investors Reliance Group and Temasek Holdings for making it operational," Kunwer Sachdev, Managing Director of Su-Kam Power Systems, told PTI.

Anil Ambani-led Reliance Group and Temasek Holdings, the investment arm of the Singapore government, have a 19.18% stake in the company.

Su-Kam also has plans to acquire firms and expand its solar power business."In the next five years, we do look at acquisitions as part of our expansion plans," Sachdev said.

Asked if the company plans to go public, he said, "Right now, we will fund our expansion through internal accruals, so we do not need an initial public offering."

The UPS and inverter manufacturer has planned a capital expenditure of Rs 35 crore during the current fiscal year.

Su-Kam recently bagged a contract for installing solar projects at 35 schools in Rwanda, for which it will also provide onsite training on operations and maintenance.

The company has a presence in over 70 countries and has bagged solar power projects in African countries such as Nigeria, Malawi and Gabon.