Tag: Pratik Agarwal

Business

Sterlite Power Receives Stakeholders’ Approval for Demerger of Transmission Business from SPTL

May 24, 2024 by Sujata Muguda 0 Comments #EPC Services, #GPS business, #HVDC, #Mumbai, #National Company Law Tribunal, #Pratik Agarwal, #SPTL, #Sterlite Power Transmission Limited, #T&D expansion, #Transmission Business from SPTL Sterlite Power Receives Stakeholders’, #Transmission Infrastructure

Mumbai, May 24, 2024: Sterlite Power Transmission Limited (SPTL), a leading power transmission developer and global products and solutions provider in India and Brazil, announced it has received approval from its equity shareholders, secured creditors, unsecured creditors, and non-fund-based lenders for the demerger of its transmission business. The vote on the demerger proposal received 100% approval from secured creditors, 99.26% approval from unsecured creditors, 99.99% from equity shareholders present and voting, and 100% by the non-fund-based lenders.

The proposed demerger will empower both its businesses – the demerged Transmission Infrastructure (to be housed under Sterlite Grid 5 Limited) and Global Products & Specialised EPC Services (that will continue to remain under SPTL), to pursue independent growth strategies with greater agility and focus. The simplified structure will allow each entity to attract capital pool tailored to its requirements. The infrastructure business can target long-term, patient investors seeking predictable cash flow, while SPTL, focusing on the Global Products & Services (GPS) business, can attract capital seeking higher returns typically suited for pre-IPO or capital market investors.

Pratik Agarwal, Managing Director, Sterlite Power Transmission Limited, said, “This support from our stakeholders validates the strategic rationale behind the demerger. It is a significant milestone in our journey to create two future-ready businesses with distinct growth trajectories.”

The GPS business capped off a successful FY 24 with cumulative order wins worth It represented a 35% year-on-year (YoY) increase as compared to FY23, underscoring the growing global and domestic demand for robust power transmission infrastructure, particularly to support the integration of renewable energy sources.

Sterlite Grid 5 is also well-positioned to capitalize on substantial growth in the transmission infrastructure business. A robust transmission pipelineincluding large-scale HVDC and green energy corridor projects, has been approved and will be bid out in the coming years under competitive bidding process. The fast pace of developments at the inter-state and intra-state level is providing a healthy pipeline and will improve evacuation for renewable energy projects under development.

Globally, the power transmission network is expected to double in the next 8 years to meet aggressive renewable energy additions. The demand for Power Products is expected to remain strong over the medium term on the back of healthy demand, amid aggressive global capex earmarked for Renewables capacity addition, T&D expansion, benefits from ‘China+1’ theme and favourable tariff structures in the US.

The demerger will be implemented through a National Company Law Tribunal (NCLT) scheme of arrangement. Upon completion of the demerger process, all SPTL shareholders will hold identical shareholdings in both companies.

Disclaimer: This press release is provided by a third party and has not been independently verified. We do not guarantee its accuracy. Readers are advised to conduct their own research before relying on the information herein.

Business

Sterlite Power Announces Financial Closure of Beawar Transmission Limited Project

Feb 12, 2024 by Sujata Muguda 0 Comments #Beawar Transmission Limited Project, #Pratik Agarwal, #Sterlite Power

Bengaluru, February 12, 2024: Sterlite Power, a leading power transmission developer and global products and services provider, has successfully achieved financial closure for its Beawar Transmission Limited (BTL) project. The project has secured funds totaling ~INR 2400 crore from REC Power Development and Consultancy Limited – a wholly owned subsidiary of Rural Electricity Corporation. This accomplishment follows within just four months of Sterlite Power acquiring the project.

Commenting on the development, Pratik Agarwal, Managing Director, Sterlite Power said, “Financial closure is an important milestone in an infrastructure project’s lifecycle. Achieving this in a short span will help us in expediting the delivery of this critical project – an integral part of the larger Green Energy Corridor that will help evacuate around 20 GW of renewable energy.”

Sterlite Power acquired the BTL SPV in September 2023 to execute the inter-state green energy transmission project on BOOT (build, own, operate, transfer) basis, for a period of 35 years. The project involves construction of a 350 km, 765kV transmission corridor that will connect the renewable energy zone at Fatehgarh III to a proposed substation at Beawar. The project will also include construction of 3000 MVA 765/400kV Substation at Beawar and two LILO lines covering approximately 120 km.

Sterlite Power has a proven track record of executing complex projects successfully and has set new industry benchmarks through cutting-edge technologies and innovative financing.

Business

Sterlite Power Announces Financial Closure of Beawar Transmission Limited Project

Feb 12, 2024 by Sujata Muguda 0 Comments #Beawar Transmission Limited Project, #Pratik Agarwal, #Sterlite Power

Mumbai, February 12, 2024: Sterlite Power, a leading power transmission developer and global products and services provider, has successfully achieved financial closure for its Beawar Transmission Limited (BTL) project. The project has secured funds totaling ~INR 2400 crore from REC Power Development and Consultancy Limited – a wholly owned subsidiary of Rural Electricity Corporation. This accomplishment follows within just four months of Sterlite Power acquiring the project.

Commenting on the development, Pratik Agarwal, Managing Director, Sterlite Power said, “Financial closure is an important milestone in an infrastructure project’s lifecycle. Achieving this in a short span will help us in expediting the delivery of this critical project – an integral part of the larger Green Energy Corridor that will help evacuate around 20 GW of renewable energy.”

Sterlite Power acquired the BTL SPV in September 2023 to execute the inter-state green energy transmission project on BOOT (build, own, operate, transfer) basis, for a period of 35 years. The project involves construction of a 350 km, 765kV transmission corridor that will connect the renewable energy zone at Fatehgarh III to a proposed substation at Beawar. The project will also include construction of 3000 MVA 765/400kV Substation at Beawar and two LILO lines covering approximately 120 km.

Sterlite Power has a proven track record of executing complex projects successfully and has set new industry benchmarks through cutting-edge technologies and innovative financing.

Business World

Sterlite Power elevates Manish Agarwal as CEO of Infrastructure & Solutions Business

Feb 25, 2021 by Neel Achary 0 Comments #Managing Director, #Pratik Agarwal, #Sterlite Power

Mumbai: Sterlite Power, a leading global developer of power transmission, today announced the elevation of Manish Agarwal as CEO of the Infrastructure business, in addition to his existing role as CEO for the Solutions Business.

Manish has been associated with the Sterlite Group for 22 years and has held various leadership positions across the organization. Prior to his role elevation, he was CEO of the Solutions Business which focuses on brownfield transmission comprising of Master Systems Integration (MSI) and manufacturing of underground power cables and overhead products including High Performance Conductor & OPGW.

In the elevated role, Manish will be responsible for both greenfield and brownfield transmission business of the company in India.

Commenting on the appointment, Pratik Agarwal, Managing Director, Sterlite Power, said “Manish is a seasoned leader with rich experience in the power & telecom sectors. His strong leadership credentials give us tremendous confidence in his ability to lead this business in alignment with our organization’s core-purpose and values”, he said.

Manish holds positions of pre-eminence with various Chambers, Associations, Technical bodies, & Councils and has been a leading voice on industry matters, shaping policy priorities on trade and sustainability. He is a Harvard alumnus and has also pursued Executive Leadership Programs from IIM-A and ISB, Hyderabad.

News

AMP Capital establishes energy transmission platform in India with Sterlite Power

Dec 30, 2020 by Rekha Nair 0 Comments #Anuraag Srivastava, #CFO Sterlite Power, #Head of India, #Infrastructure Equity at AMP Capital, #Managing Director, #Pratik Agarwal, #Sharat Goyal, #Sterlite Power

Hyderabad: Global investment manager AMP Capital has established a 50/50 partnership with Sterlite Power Transmission Limited (Sterlite Power) for the development of energy transmission projects in India. This marks the first investment in India for AMP Capital’s global infrastructure equity strategy.

AMP Capital and Sterlite Power will each invest an initial amount of approximately USD 150 million in the development of four transmission projects, and have put in place debt financing, which represents a total capital outlay of around USD 1 billion. These projects have a circuit length of nearly 1800 kilometres of transmission lines across the Western, Southern and North Eastern regions of India. They will provide the critical infrastructure required for evacuating power from multiple renewable energy generation projects and will strengthen the power delivery infrastructure in the country.

The partners may in the future contribute further capital for new inter-state transmission projects which are expected to be tendered by the government of India. Therefore, the partnership has the potential to reach an overall investment size of USD 500 million.

Transmission infrastructure has underpinned the rapid growth seen in the generation capacity of India over the last decade. This growth has been led by renewable energy, where India is rapidly becoming recognised as a global leader, having surpassed its ambitious Paris Agreement targets with 38% of generation capacity currently from clean energy. The Indian power market still has huge potential for expansion, with low relative per capita power consumption in the country. Due to years of underinvestment in transmission capacity there is significant demand for investment, and the Indian government has been actively promoting the participation of the private sector in transmission line development through the continued implementation of supportive regulatory reforms.

Sterlite Power is a leading developer of transmission projects with a robust execution record across India and Brazil. It has won a third (by tariff) of all inter-state private transmission projects awarded in India under competitive bidding since 2011, and has successfully established its unique asset flip business model across both markets. Sterlite Power has completed and sold nine transmission assets to date in India.

Sharat Goyal, Head of India, Infrastructure Equity at AMP Capital said: “AMP Capital and Sterlite Power believe that this is a unique partnership bringing together operational and investment expertise to support the hitherto under-invested construction phase of power infrastructure in India. Our investment will create a pool of valuable transmission assets, with long-term contractual arrangements and a robust payment security framework, which are extremely attractive to yield-seeking investors.

“India is a key target market for AMP Capital and we have dedicated time and resource to finding a compelling investment opportunity suited to our clients. This investment capitalises on the opportunity presented by the Indian infrastructure sector at this time, as well as benefitting from policy initiatives like Infrastructure Investment Trusts (INVITs) which have created transparent, market-driven exit opportunities for investors willing to invest capital in the development of greenfield infrastructure projects in India.”

Commenting on the transaction, Anuraag Srivastava, CFO Sterlite Power said “We are delighted to enter into a partnership with AMP Capital – a leading global infrastructure private equity firm. This investment is another testimony of continued trust reposed on us by the investor community.”

Pratik Agarwal, Managing Director, Sterlite Power said: “We are driven by our core purpose to enable access to reliable power while minimizing the impact on climate change. The world is undergoing a clean-energy revolution and India is leading this effort with its mammoth target of 450GW by the year 2030. Sterlite Power will contribute towards this noble cause by creating the required transmission infrastructure so that green energy can reach the most underserved households. We are happy to have like-minded partners like AMP Capital who believe in our core purpose and in our model of sustainable development.”

AMP Capital was advised by Citigroup (financial), PwC (commercial and tax) and AZB (legal). Sterlite was advised by Moelis & Company and Credit Suisse (financial), Khaitan & Co (legal), and EY (tax).