In the largest ever clean-energy related investments in India, US-based deep-impact fund TFCC International has entered into a pact to invest $4.14 billion into Chennai-based Ramcharan Co.
With this, TFCC will acquire 46% equity in Ramcharan for investment in environment to energy management systems and renewable energy devices with high storage capacity made from sodium silicate.
The deal values the little-known company, which develops products to process large quantities of unsegregated waste into energy, at over $9 billion. This investment will be made with a horizon of five to seven years.
TFCC International has had investments in the Middle East, South Asia and is now working in India looking at impact investments in areas of environment solutions, renewable energy and low-cost housing. TFFC has a portfolio of $ 20 billion dollars invested in South Asia and this will be its maiden investment in India.
The technology used by Ram Charan allows for zero toxic residue, and can be used to convert all types of unsegregated waste into energy, with zero residue to the environment, making it the first of its kind globally and also the safest.
“We are looking forward to this business, with great anticipation. Technologies such as those promoted by Ram Charan, and the immense headroom for sustainable growth, echoes with our investment objectives and we believe that Ram Charan’s products in the waste to energy field and the new generation of energy storage devices will help the environment in a significant manner,” said Chris Curtis, Chairman, TFCC International.
According to Curtis, the deal is also in line with the global sentiment expressed in the recently concluded COP 26 meets, and in line with Prime Minister Narendra Modi’s expectation for India.
TFCC signed a pact with Ramcharan in March to invest into the equity of Ram Charan, which was closed with a shareholders’ agreement in October.
Ramcharan currently has a business plan and orders of up to $9 billion and are looking at surge sales from three years to the sixth year of their production, taking up the expected revenue to $40 billion, after the fourth year.
The technology used by Ramcharan allows for zero toxic residue, and can be used to convert all types of unsegregated waste into energy, with zero residue to the environment, making it the first of its kind globally and also the safest.
The company is implementing modern techniques considering a zero-part per million production unit, and also amongst the first globally to set up end product responsibility for their products. The technology, developed in-house after research from 2016 by the current team at Ramcharan headed by Kaushik Palicha, has been branded under the name Entity 1, and has a slew of products lined up for release from 2022 till 2024. Its manufacturing facilities in India, are planned in the state of Tamil Nadu and Gujarat.
TFCC International is a deep impact fund, with investments from high-net-worth individuals, government agencies and financial institutions, based in New York, United States.