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ReNew Power, founded by Sumant Sinha in 2011, has rapidly grown to become India's largest renewable energy developer, expanding its capacity from 25.2 MW to 5,000 MW in just nine years. The company is exploring future growth opportunities in both domestic and international markets while recognizing the need to diversify amid a transforming electricity sector in India. Despite initial funding challenges, ReNew successfully secured investments from Goldman Sachs, enabling it to build a strong operational foundation and competitive advantage in the renewable energy landscape.
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0% found this document useful (0 votes)
50 views14 pagesEmailing IIM AHMEDABAD CASE STUDY
ReNew Power, founded by Sumant Sinha in 2011, has rapidly grown to become India's largest renewable energy developer, expanding its capacity from 25.2 MW to 5,000 MW in just nine years. The company is exploring future growth opportunities in both domestic and international markets while recognizing the need to diversify amid a transforming electricity sector in India. Despite initial funding challenges, ReNew successfully secured investments from Goldman Sachs, enabling it to build a strong operational foundation and competitive advantage in the renewable energy landscape.
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/ 14
ae INDIAN INSTITUTE #/ MANAGEMENT AHMEDABAD aiiiiss
October 13, 2622
ReNew Power: Building Scale in the Indian RE Sector
“AL this juncture, we have been successful and if the momentum continues, we will match
up with the other older private sector players in 2-3 years in terms of EBITDA. Even
though we see immense opportunities in the renewable energy sector in India going
forward, we do recognize the need to diversify. More so when the électricity sector in India
is going through a transformation and is likely to offer opportunities not only in renewable
cenergy-based generation but also in distribution where the presence of private sector has
‘been limited and the public sector-dominated distribution has hardly been eficient. Broadly
speaking, we could choose to grow as a renewable energy-based generator in a growing
market like India or we could go global as a renewable energy developer and generator
with/without backward integration in manufacturing or we could look at the emerging
opportunities in the Indian electricity sector.” *
_,,.Suiniant Sinha, CEO, ReNew Power
In December 2020, Sumant Sinha, the founder CEO of ReNew Power, scheduled a team meeting
to discuss the future direction for the firm in.the,¢ontext of the expanding opportunities for
renewable energy-based (RE-based) electricity not only in India but also globally. He reflected on
the growth of ReNew Power with immense satisfaction, as the firm had become the largest RE
developer in India in nine years.'From’a humble beginning of wind energy-based generation
capacity of 25.2 megawatts (MW) in 2011-12, the company had increased its renewable-based
capacity to 5,000 MW by 2019. Exhibits 1a-1c show the growth in the generation capacity of the
Indian electricity sector, the share of renewable capacity, and the growth in the capacity of ReNew
Power. Contemplating the future, Sumant wondered whether ReNew Power should focus on the
Indian market alone or explore opportunities abroad in the growing renewable energy sector. He
wanted to brainstorm with his team on India’s emerging and increasingly competitive landscape
driven by the Indian government's ambitious plans for RE-based capacity. Another aim of the
meeting was to explicitly articulate the sources of competitive advantage that had enabled
ReNew to grow and add value for its investors. Any future direction would have to leverage the
strengths of ReNew over its competitors. Until then, ReNew had not only attracted private equity
investors in its growth path but also achieved successively higher valuation, indicating the
confidence of outside investors in ReNew’s ability to add value. Some private equity investors
‘would be keen to see ReNew listed through an initial public offering (IPO), which had been
contemplated in 2018 but had been deferred due to market conditions.
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Background: ReNew Power and India’s Emerging Renewable Energy Sector
ReNew Power was incorporated in January 2011 by Sumant Sin!
‘entrepreneur and a former investment banker. By 2019, ReNew Power: ‘had become: one of Indi
lagest renewable energy independent povser producers (IPPS) in terms of toed enn
generation capacity. Together with his wife, Vaishali, an accomplished former bankey Sete
started the vente by ceatinga small team with a dream to become a significant paver ithe
emerging renewable energy sector in India. Sumant had previously been the chet operating,
officer (COO) atSuzlon Energy, one of the world's top original equipment manufacturers (OEMs)
for wind turbines. This experience instill
“d in him an interest in the renewables sector. It was
