Is Tata copying Adani, Reliance with her green twist?

The moment one lands on the website of Tata Power, one of India’s largest integrated power companies and part of the $311 billion Tata Group, they are greeted with a banner encouraging customers to adopt the renewable energy and ‘Do Green’. In fact, going green is at the forefront of most companies’ plans for the future, including those of major Indian business groups such as Reliance Industries and Adani Group.

Tata Group is also making a transition towards sustainability across all businesses and will soon announce its goal of becoming carbon neutral.

As the world pledges efforts to control global warming, realizing its dangers, India has also vowed to cut emissions. Prime Minister Narendra Modi recently made a commitment to the world to meet a set of climate targets by 2030 and big conglomerates have spotted business opportunities in this push.

Tata Motors said in October last year that it would form a new subsidiary for its electric vehicle business and invest $2 billion in new models, dedicated battery electric vehicle platforms, charging infrastructure and battery technologies.

The electric vehicle unit raised $1bn from TPG’s Rise Climate Fund and Abu Dhabi state holding company ADQ at a valuation of $9.1bn.

With its Nexon and Tigor models, Tata Motors dominates electric vehicle sales in India with a 70% market share. It is also developing buses powered by hydrogen fuel cells.

Chairman N Chandrasekharan recently said the group is drawing up plans to make batteries for electric vehicles, as part of a broader plan to be “future-ready” by investing in renewable energy, hydrogen, storage solutions and the circular economy.

In 2019, Tata Chemicals put into operation a pilot plant for the recycling of lithium-ion batteries. Last week, Tata Power said it would spend $9.5bn over the next five years to expand the capacity of its renewable energy business and increase its share of the overall portfolio to 60% from 34%.

The company occupies a strong leadership position in several renewable sub-segments, including solar EPCs, solar pumps and electric vehicle charging. It is also setting up a 4GW solar cell and module manufacturing plant in Tamil Nadu with an investment of $380 million.

speaking to commercial standardMayuresh Joshi, Head of Equity Research, William O’Neil India says Tata Power is no exception in crafting huge green equity investment plans. Map government vision and ESG standards. In fact, all companies take carbon neutrality seriously.

Tata Group’s moves will put it in competition with Mukesh Ambani’s Reliance Industries, which earlier this year announced plans to invest $76bn in clean energy projects. Reliance wants to build a fully integrated end-to-end renewable energy ecosystem. The company will set up four ‘gigafactories’ to manufacture integrated solar photovoltaic modules, hydrogen electrolysers, fuel cells and batteries to store energy from the grid. Since Reliance has limited experience in the technology required for such manufacturing, it has invested more than $1.5 billion over the past year in new energy partnerships and acquisitions.

Reliance will be in the race with the Adani Group to become the world’s largest and cheapest green hydrogen producer. Led by India’s richest man, Gautam Adani, the eponymous group has pledged to invest $70 billion by 2030 across its green energy value chain as it aspires to become the world’s largest energy producer. world renewable.

The group plans to triple its renewable power generation capacity, power its data centers with renewable energy and make its ports carbon neutral. Last month, French energy company TotalEnergies bought a 25% stake in Adani New Industries to create the world’s largest green hydrogen ecosystem. Last year, Total spent $2.5 billion acquiring 20% ​​of Adani Green Energy and a 50% stake in a portfolio of solar assets.

Mayuresh Joshi, Head of Equity Research, William O’Neil India, says RIL, Adani, Tata know the way forward is clean and green. Investors can avoid companies that don’t perform well on ESG, he says. Low-cost green energy producers will have export opportunities.

Low-carbon technologies like green hydrogen could create a market worth up to $80 billion in India by 2030.

As the global energy transition gains momentum, Indian companies too, especially those in highly polluting industries like power and oil, are making commitments that are in the national, global and investor interest.

They are increasingly adopting policies and goals that contribute to achieving the United Nations Sustainable Development Goals, one of which is to ensure access to clean and affordable energy by 2030.

A race is underway among the largest companies to see who can transition to clean energy the fastest. Low-carbon technologies like green hydrogen could create a market worth up to $80 billion in India by 2030.

As former Bank of England Governor Mark Carney put it, the transition to a net-zero-carbon economy “is creating the greatest business opportunity of our era.” Companies that are part of the solution will be rewarded and those that fall behind will be punished.

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