Sumitomo Corp picks up 49% stake in Hero group unit

Sumitomo Corporation has picked up a 49% stake in a special purpose vehicle (SPV) of Hero Future Energies (HFE) for an undisclosed sum, according to a press release.

Rahul Munjal-helmed Hero Future Energies will own 51% stake in the SPV.

The SPV will undertake development of a renewable energy project in Bidar district of Karnataka with a capacity to generate 500 megawatts of electricity powered by a combination of wind, solar and battery energy storage.

Hero Future Energies has a 10 gigawatt renewable energy development pipeline which includes operational and under-construction projects.

“We are delighted to welcome Sumitomo Corporation as a strategic partner in this project. This partnership is an endorsement of HFE’s capabilities to execute complex renewable energy projects at scale,” said Rahul Munjal, founder and chairman, Hero Future Energies.

Sumitomo Corporation is expected to invest around $1.3 billion in renewable energy projects in India, according to recent media reports.

“We see significant potential in HFE’s clearly defined growth ambitions, particularly as the share of renewable energy continues to grow rapidly within India’s energy mix. Through this partnership, Sumitomo Corporation will strengthen our renewable energy business platform in India while pursuing new business opportunities that support the stable supply of renewable energy,” said Jun Minase, general manager, overseas energy solution SBU, Sumitomo Corporation.

Hero Future Energies (HFE) is a global renewable energy company and part of the Hero Group. It is backed by global private equity firm KKR and World Bank’s private sector arm, International Finance Corporation.

The company has a global portfolio of 7.7 gigawatts of renewable energy assets and 2.9 gigawatts of battery energy storage capacity across India, Ukraine, Vietnam and the UK, including both operating and under-development projects. Beyond conventional wind and solar PV assets, HFE’s portfolio includes advanced high-CUF solutions such as hybrid power, peak power, firm and dispatchable renewable energy (FDRE) and emerging technologies including energy storage and green hydrogen.