Brookfield Acquires 51% Stake in CleanMax Enviro – A Renewable Energy Success Story

Canadian investment firm Brookfield has recently acquired a 51% stake in CleanMax Enviro (CleanMax Solar), a leading provider of renewable energy to commercial and industrial clients in India. The company’s equity value is estimated to be between ₹3,500 crore and ₹4,000 crore. This acquisition highlights the successful journey of CleanMax in developing a substantial renewable energy asset portfolio over the years and the fortunes it has made through its exit strategy.

CleanMax Solar was founded in 2011 by Kuldeep Jain and has since grown to become the largest commercial and industrial (C&I) renewable energy player in India. The company boasts an impressive operating capacity of over 1,600 MW, including 350 MW of wind power. CleanMax has also expanded its operations into emerging markets like the UAE, Thailand, and Bahrain.

Some of the company’s key clients include prominent technology firms such as NTT, Cisco, Facebook, and Singapore Telemedia, as well as major industrial clients like Ultratech, UPL, Tata Motors, Welspun, and Sansera.

The Brookfield acquisition primarily consists of a secondary sale of shares by existing shareholders, along with a small portion of primary infusion into the company. This deal comes on the heels of Brookfield’s recent investment of $1 billion in Avaada Ventures, a renewable energy company run by serial entrepreneur Vineet Mittal.

With this acquisition, Brookfield now controls more than 9 GW of renewable energy assets across seven Indian states, comprising solar, wind, and hybrid projects in various stages of operation and development. The total investment made by Brookfield in the transaction, including the initial injection and secondary equity purchase, is approximately ₹2,500 crore.

The founder of CleanMax, Kuldeep Jain, and US-based investor Augment Infrastructure will retain a majority of the remaining 49% stake in the company. As of 31 March 2022, Augment Infrastructure owned 53% of the company; founder Kuldeep Jain owned 16.48%; UK Climate Investments owned 17.58%; and a small number of other shareholders, including Godrej Industries and Nadir Godrej, held shares in the company in minor proportions.

CleanMax Solar has demonstrated consistent financial performance, with revenues of ₹701.72 crore in FY22 compared to ₹621.26 crore in the previous year. The company also reported a profit of ₹29.85 crores in FY22, up from ₹25.3 crores in FY21.

The acquisition of CleanMax Solar by Brookfield not only highlights the successful growth and development of CleanMax’s renewable energy asset portfolio but also showcases the immense potential of renewable energy investments in India. As the country continues to embrace clean energy sources and reduce its dependence on fossil fuels, companies like CleanMax Solar stand to make a significant impact on India’s energy landscape and reap substantial rewards through strategic exit strategies.

In conclusion, the Brookfield-CleanMax deal serves as an inspiring example of how dedication, innovation, and strategic investments in the renewable energy sector can lead to successful ventures and sustainable growth, while also contributing to a greener future for India and the world.