Adani Transmission Ltd, part of the Adani Group, on Wednesday completed the acquisition of Reliance Infrastructure’s integrated business of power generation, transmission and retail distribution, thus entering Maharashtra’s retail electricity business.
The integrated business includes generation units based at Dahanu, transmission lines across Mumbai and Maharashtra, and the retail power distribution network in Mumbai suburbs.
The acquisition will be housed in Adani Electricity Mumbai Ltd (AEML), a newly-formed entity and a subsidiary of Adani Transmission Limited (ATL). It will serve over 30 lakh customers spread across 400 sq km in Mumbai. This acquisition marks the firm’s foray into the large-scale electricity distribution sector, the most vital function in the power supply chain. Business operations at AEML, post-acquisition, will continue to function seamlessly with the absorption of about 5,000 existing employees across the three business areas, said Gautam Adani, Chairman of the Group, in a statement here.
“We aspire to enter into the electricity distribution business in key cities and districts in pursuit of the Government of India’s vision to enable ‘Power for all by 2020’.
Anil Sardana, Managing Director and CEO, ATL, and Chairman, Adani Electricity Mumbai Ltd, said customers can continue to reach out on No the number 19122 with for all their queries. AEML will additionally introduce services to ensure that consumers have access to multiple touch points to voice their concerns.
ATL owns and operates 35 bulk power grid substations with nearly 19,300 MVA of transformation capacity across the country. It will continue to be the largest private sector transmission and electricity distribution company in the country, he said.
The M&A advisor for the transaction was SBI Capital Markets and Cyril Amarchand Mangaldasthe legal advisors. Luthra & Luthra Law Offices were the lenders’ counsel in the transaction.
ATL is the transmission arm of the Adani Group, with a cumulative transmission network of 12,540 ckt km, out of which approximately 9,201 ckt km is operational. This includes around 3,280 ckt km in various stages of construction.