It will be interesting to see Ambani Vs Adani battle in Indian energy space. Till date both have never interfered in each other business and never crossed the line. They continue to pursue their business interest without crossing the line of each other. Now Mukesh Ambani has decided to cross this line and announced Reliance Industries entry in Green Energy space. Mukesh Ambani announced this on 24th June in Annual General Meeting of Reliance Industries.
Reliance entry in green energy sector has immediately grab the attention of players in this sector. This will be the first time when Ambani Vs Adani battle will be seen in Indian business space for any sector. Both will try to establish their supremacy in this field as per experts. Gautam Adani owned Adani Group is already present in this space and producing green energy in different sates in India. They have also acquired some international contract in recent past.
What kind of investment committed by Adani Group and Reliance Industries in this sector
Let me tell you that Adani Green Energy won contract to set up world’s largest power project in July 2020. For this project Adani group committed to invest about 45,300 Crore. Adani group is also present in 11 Indian States and producing about 15,390 megawatt green energy. They have booked the revenue worth 3,183 Crore with net profit of 210 Crore in FY 2020-21. Adani’s already building green energy infrastructure in Indian states and investing significant money in this sector.
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Now Reliance Industries announced a mega plan to enter in the green energy business. They have provisioned investment of Rs 75,000 crore in this sector for next three years. Now the Mukesh Ambani announcement to enter in this sector with such a huge investment has started the battle between Ambani Vs Adani. It will be interesting to see who win this batle. Both group has deep pocket and and excellent alignment with current power centre in Indian Government. They will try to get the government support in their favour.
What is Green Energy and why top industries planning to venture in this sector
Green energy is the process of producing energy with natural sources such as sunlight, wind or water. This Green Energy does not harm the environment and this will be future of energy in requirement and fulfilment in the world. It is promoted by the government because it does not produce harmful greenhouse gases. Green energy is also called renewable energy. Considering the potential in this sector Ambani Vs Adani battle begun and both will try to set their supremacy in this sector.
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Let me tell you that the green energy has a long future and government across the world promoting this sector. Since government across the world has deep interest and promoting this sector Reliance Industries planned to venture and wish to explore this sector. Reliance is not the first company in India who has shifted their focus to the green and renewable energy. Many Indian infrastructure companies already ventured in this sector. These companies has invested about Rs 37,000 crore between April to December 2019. Energy experts believe that this sector will get investment worth 37 lakh crore by 2028.
How Reliance Industries planning to win this battle in Green Energy Space: Ambani Vs Adani
To win the battle in Green Energy sector, Reliance Industries is planning to build a 4 Giga factory in Jamnagar, Gujarat. They will invest about 60 thousand crores for this factory. Reliance is planning to produce solar panels, batteries, green hydrogen and fuel cells in this factory at Jamnagar. Apart from this, Rs 15,000 crore will be invested to create value chain and partnership with future technology. The total investment of 75 thousand crores will be invested in the next 3 years for green energy business.
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With this investment, Reliance Industries wants to achieve the target of 100 GW of renewable energy by 2030. They also wants zero carbon tag by 2035 for Reliance Industries. Let me tell you that, this sector has already got about 3 Lakh Crore investment and producing around 94 Gigawatt Green energy in India. This sector has huge potential and 49% to total world energy requirement will be fulfilled by Green Energy by 2040 as per experts. The potential in this sector bring Ambani Vs Adani battle in the field.
What will be the strategy of Adani Group to maintain the dominance in this sector: Ambani Vs Adani
People closely monitoring the growth and business of Gautam Adani Group believe that he will continue to follow the current strategy to maintain the dominance in this sector. Adani’s will continue to partner with centre and state government to produce green energy. They all also use their influence in centre government to get international and domestic contracts in this sector. They will invest slowly in this sector and expand business strategically. Adani group is known to expand business via government funds and subsidy.
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Experts believe that, there will be no major change in their strategy even after the Reliance Industries announcement to enter in Green Energy sector. Adani’s may not follow the Reliance Industries strategy to invest huge in this sector with promise of growth. They will continue to go slow and expand business in India and overseas. But experts believe that this battle between Ambani Vs Adani will be interesting for energy sector. This battle will benefit the power sector in India and world.
