Reliance Industries (RIL) is looking to speed up its entry into the new materials and renewable energy business through fresh acquisitions. RIL Chairman Mukesh Ambani had announced that the company will be going global under its new energy business during the 44th Annual General Meeting in June this year.
RIL is believed to be closing in on a deal to buy out the REC Group, a Norway-headquartered solar module maker with links to the Chinese government-owned China National Chemical Corporation (ChemChina). The deal with RIL is estimated at around $ 1.2 billion.
Ambani had also announced setting up a solar module factory in Gujarat. The acquisition of REC Group can aid in raw material sourcing and technology transfer for RIL’s proposed Dhirubhai Ambani Green Energy Giga Complex that will be spread over 5,000 acres.
REC can currently produce 1.8 gigawatts (GW) of solar panels annually. It has around 10 GW of installed solar power generation capacity around the world. According to the company website, REC was founded in 1996. It has operational headquarters in Singapore and also has regional hubs in North America, Europe, and Asia-Pacific.
In January 2021, China’s patent office upheld the validity of REC’s split cell and junction box technology patent. According to REC, this technology, that was developed in-house, is a key feature of REC Group’s advanced solar panels. REC Group had raised the dispute to protect its intellectual property through a patent infringement lawsuit against Korea-based Hanwha Q Cells in February 2020.
More recently, in May this year, REC announced the launch of its TwinPeak 4 Series, the fourth generation of its premium solar panels for residential and commercial rooftop installations.
Commenting on the new energy and new materials business, Ambani had said “As a company always focused on growing businesses of the future, Reliance will provide leadership on the combined strength of our balance-sheet, talent, technology and proven project execution capabilities…Reliance will make its New Energy business a truly global business.”
Source: Business-Standard