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The Energy Efficiency Services Ltd (EESL) on Tuesday announced that it has acquired the UK-based Edina Power Services for ₹493 crore. EESL is a joint venture of four PSUs under the administrative control of the Ministry of Power.
Edina is a supplier, installer and maintenance provider for combined heat and power (CHP), gas, and diesel power generation solutions in the UK. The £55-million acquisition is the first-of-its-kind venture by an entity under the Ministry of Power. The acquisition is effected through its EESL’s UK subsidiary, EnergyPro Assets Ltd (EPAL).
Managing Director of EESL, Saurabh Kumar, told media persons that the new acquisition will help EESL offer a complete plug-and-play solution for hotels and hospitals, which will greatly reduce the consumption of electricity. Edina will offer gas engines, which will provide heating, cooling and hot water requirements of large facilities.
The acquisition has been done through 40 per cent equity and 60 per cent debt. EESL hopes to service the market in the UK and India through this acquisition. In India, Edina will run on Opex model for business operations, he said.
Kumar also announced that EESL was looking at floating an IPO by the third or fourth quarter of 2018-19. ESSL would dilute its equity up to 20 per cent.
Edina has over 30 years of operational experience and is recognised as the market leader in the UK in gas engines, commanding 27 per cent of the market share. Earning annual a turnover of £100 million (₹896 crore), Edina services over 400 customers, providing containerised solutions that reduce customers’ energy costs and carbon emissions, while also providing a continuous and reliable power supply, from sites in the UK, Ireland and Australia. Edina is the sole distributor of MWM gas engines in the UK and Ireland, and of Perkins diesel engines in Ireland.
Kumar said that the EESL also has an MoU with Airport Authority of India and will be offering the services of Edina at various airports. In India, the company recently received its first order of supplying 32-MW gas engines to Sterling and Wilson.
A press statement said EESL is implementing a global strategy and commitment to invest £150 million (₹1,343 crore) through EPAL into energy services business opportunities in the UK, EU and North America.
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