Havells India Limited, an FMEG Company, announced the signing of a binding term sheet to invest Rs 600 crore in Goldi Solar Private Limited (Goldi). This investment is part of a proposed fund raised by Goldi of up to Rs 1,300 crore, which is expected to be completed within the next 75 days.
This strategic investment marks a significant step in Havells' vision to play a larger role in India’s energy transition journey and further strengthen its commitment to sustainable growth.
Havells has been evaluating multiple possible ways to participate in this mega-trend through solutions for energy generation, storage, distribution and consumption, etc. The energy transition is an adjacency to Havells’ existing portfolio.
Renewable energy capacity is projected to grow at a CAGR of 16% until 2030, reaching approximately 500GW (64% of total energy capacity). Out of the 500GW, ~300GW is anticipated to come from solar energy sources. The Indian solar sector is at an inflexion point supported by various government initiatives and favourable unit economics across the value chain. Solar energy generation projects represent a multi-billion-dollar opportunity over the next five years.
Havells has contributed to the Solar ecosystem through its offerings, including inverters, modules, solar cables, and DC switchgear. It has stronger brand-led play in the residential rooftop and commercial and industrial (C&I) segments. The increasing domestic reliance on modules through policy measures required Havells to establish its manufacturing or strategically partner with module manufacturer(s). A detailed evaluation of multiple considerations, the Executive Committee of the Board favoured a relatively de-risked approach of partnering with a large module manufacturer (with planned backward integration in domestic cells) to participate in the large opportunity set through consistent sourcing arrangement.
The Binding term sheet outlines a primary investment of INR 600 crore by Havells. Post completion, Havells will have an 8.90% 9.24% stake in Goldi depending on the size of the total primary round, ranging between Rs 1,050-1,300 crore. Transaction is effectively valued at 20x EV to EBITDA multiple basis unaudited provisional EBITDA for FY25.
Havells will have customary shareholders rights, including board seats and investor reserve matters. The transaction is subject to the fulfilment of certain Conditions Precedent, including approval from the Competition Commission of India (CCI).
