Sterlite Power raises Rs 725 crore to fuel GPS business expansion

Fund to fuel expansion plan of recently hived-off GPS business of company: MD Pratik Agarwal

Leading power transmission player Sterlite Power on Thursday announced raising Rs 725 crore for its global products and services (GPS) business from GEF Capital Partners and ENAM Holdings. Sterlite hived off its GPS business in October this year, which marks the first fundraiser for the new business.

 

The GPS business currently has an open order book of Rs 6,612 crore. The company said it has secured orders worth Rs 2,715 crore during H1FY25.

 

Speaking with Business Standard, Pratik Agarwal, managing director, Sterlite Power Transmission Limited said, the fund would be a catalyst for the planned Rs 400 crore expansion plan of the GPS business and invest a portion in the working capital.

 

 

He explained that the company is looking to cater to the growing demand in the power equipment industry.

 

“On the back of global decarbonisation wave, rapid electrification and green energy growth, many products are experiencing an unprecedented demand with supply struggling to catch up. Sterlite Power has been in this business more than 40 years and have always been the leader in cables and conductors. If you combine conductors and extra high voltage cables, we supply to more than 40 countries. The market is growing at low double digits and we plan to grow at about 15 to 20 per cent over the next two to five years,” Agarwal said.

 

Under its GPS business, the company offers a wide range of solutions in the conductors and cables segment. The product portfolio has high-performance conductors, optical ground wire and HV/EHV power cables. These products are aimed at evolving demands of the power sector, facilitating the integration of the renewable energy ecosystem, enhancing grid resilience, and reducing the overall transmission losses.

 

Agarwal said that while they will cater to all three verticals – generation, transmission and distribution, it is expecting significant power demand growth from India’s mega cities. Globally, he said the US would be the single largest customer driving close to 30 per cent of their non-India demand, followed by West Asia and South Asian countries.

 

“The single biggest driver of demand in India will be our top 40 to 50 cities as their power consumption grows disproportionately. While India's consumption may grow at 6 per cent, power consumption in these top cities would grow at 10- 11 per cent per year. These 50 cities don't have the space to install transmission towers for the incremental transmission needs. They'll be compelled to use extra high voltage cables, V220kV, 400kV or even HDC cable like we're seeing in Mumbai for example. So, our intention today on day one is to first have capability in 400kV cables. For that we are building a new factory in Baroda,” Agarwal added.