Reliance New Energy Solar Ltd (RNESL), a wholly-owned subsidiary of Reliance Industries, has signed an agreement to acquire Faradion Limited, a leading sodium-ion battery technology company. The deal is worth GBP 100 million with RNESL investing GBP 25 million as growth capital in the company.
In an interview to CNBC-TV18, Deven Choksey of KRChoksey spoke at length about the new energy business.
“The new energy business is a separate company within Reliance and it is talking about investing Rs 75,000 crore. So the capital investment to the revenue, at optimal capacity utilization, could be 2.5-3 times of proposition in the product segment. So, from that perspective, Rs 75,000 crore could have a potential of generating Rs 2 lakh crore plus of revenue,” he said.
Also Read: Reliance New Energy Solar to acquire Faradion Limited; deal aims to make EV batteries cheaper
He further said that if this happens then the payback period could be 3-4 years and therefore, the company could get a significantly large amount of valuation.
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For the entire interview, watch the video