With the completion of this round of funding, the company has access to $75m of equity, including funds raised earlier from BVP and SEPC. The latest equity infusion will provide OGPL with the capital to implement its operating plan of setting up and acquiring power generation assets based on renewable sources including biomass, cogeneration, wind, small hydro and biogas, the company said.
OGPL currently operates biomass and wind energy assets with a capacity of 70 MW. This includes two 7.5 MW biomass plants in Tamil Nadu and Rajasthan and multiple wind farms in Tamil Nadu and Andhra Pradesh. It is currently implementing projects of a capacity of 146 MW and plans to install or acquire renewable energy assets of a total capacity of 500 MW over the next five years, according to a statement.
Gaurav Malik, managing director, Olympus Capital India, said, ‘OGPL has the depth and domain expertise needed to capitalise on the significant and growing opportunities in the renewable energy sector in India. The company offers a strong platform for the consolidation of renewable assets in a country that is short of power. With a strong mandate from our global investor base to invest in the environmental sector in India and other parts of Asia, even in this extremely difficult global scenario, Olympus Capital is pleased to partner with SEPC and BVP in making this investment.’
Rob Chandra, BVP’s managing partner, added, ‘OGPL started as an idea with Shriram EPC two years back and since then we have come a long way to become one of India’s leading clean energy generation companies. BVP continues to be committed to OGPL and Shriram EPC and are delighted to have a new partner in Olympus Capital.’
T Shivaraman, founder of OGPL and managing director of SEPC, said, ‘We remain solidly convinced about the business prospects of renewable energy ventures. Toward that end we have invested tremendous financial and human resources to establish a versatile and robust operating model, and I am glad to share that we have already made noticeable on-the-ground progress in this direction. We believe that we are on the cusp of the next growth wave and would like to be prepared to establish a sizeable footprint in this area.
‘I believe that renewable energy truly represents a win-win opportunity for both society and business, creating a real long term value proposition for all its stakeholders. Though there are short-term challenges that seem accentuated in the current economic environment, from a medium to long-term viewpoint the prospects are outstanding,’ he added.
OGPL was founded by SEPC in October, 2006 along with Bessemer Venture Partners, with the objective of owning and operating a portfolio of renewable energy projects.
SEPC provides design, engineering, procurement, construction and project management services for renewable energy projects, process and metallurgical plants and municipal services sector projects throughout India.
Olympus Capital Holdings Asia is an independent investment management firm focused on Asia. The firm’s principal investment focus is environmental services, including renewable energy, waste management, water treatment, energy efficiency, pollution control and prevention, and carbon programmes.
Established in 1911, Bessemer is the longest standing venture capital practice in the United States and over the past 100 years has made investments in hundreds of rapidly growing companies, many of which have gone on to become household names such as Skype, Verisign, Veritas, Staples, Ingersoll Rand, W.R. Grace and the Gartner Group. Since 1970, more than 120 companies that BVP has invested in have gone public. Over the past 100 years and continuing into the future, the hallmark of Bessemer has been to provide long-term stable capital with value-added services to innovative individuals that have created many of the world’s leading companies.
BVP has been an active investor in India since 2004. Bessemer India has 11 investment professionals across two offices in Mumbai and Bangalore.
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