The Hindu Business Line : PE invests in Kalyani group’s wind energy co

Pune April 9 The $2.1-billion Kalyani Group, a player in the auto component sector, has announced that First Reserve Corporation, an energy-focused private equity firm, has invested in Kenersys, the newly-formed integrated wind energy company focused on design, assembly and marketing of wind turbine generators.

First Reserve has an investment program in the renewable energy sector and has invested in seven companies covering biofuels, waste to energy, carbon dioxide offset origination and renewable generation; solar and wind. With over $1.2 billion invested and committed to alternative and renewables companies, First Reserve is one of the largest investors in renewable energy and is targeting up to 15 per cent of funds under management to this sector.

Mr B.N. Kalyani, Chairman, Kalyani Group, said, “We welcome First Reserve Corporation as a strategic investor in our wind energy business. With their expertise & knowledge in the energy industry, we will be able to further strengthen our business in the wind energy sector.”

He further added that the Kalyani Group, including Bharat Forge, currently supplies key wind turbine sub-components to component manufacturers and has utilised these relationships to secure components for Kenersys.

Kenersys will design and develop several key components for OEM’s & Tier I companies in the industry, thus reducing their reliance on outside suppliers.

Kenersys, with its design set-up in Germany and two operating companies in Germany & India, will initially focus on assembling and marketing turbines in Europe and Asia Pacific. The Indian organisation will also focus additionally on turnkey wind farm project development.

Other regions, including North America, are expected to follow. The initial products, 2 and 2.5 MW turbines are currently in the detail design phase with commercialisation expected in Q4 2008/Q1 2009.