Disruptive Approaches: A Catalyst for Growth and Evolution in the Market

Disruptive approaches are often seen as a threat to established businesses, but they can actually be a catalyst for growth and evolution in the market. One such example is Reliance New Energy’s plans to enter the green hydrogen business, which could disrupt the entire energy industry and pave the way for a more sustainable future.

Reliance New Energy is a subsidiary of Reliance Industries, one of India’s largest conglomerates. The company has recently announced its plans to enter the green hydrogen business, which could revolutionize the way energy is produced and consumed in the country. Reliance New Energy is investing in a green hydrogen production plant and plans to use green hydrogen to power its fleet of 43,000 trucks, which is one of the largest in India. This move by Reliance New Energy is a step towards achieving its goal of becoming a net-zero carbon company by 2035.

Reliance New Energy’s Strategy to Enter the Green Hydrogen Business

Reliance New Energy’s strategy to enter the green hydrogen business is centered around integrating its transport fleet with green hydrogen. The company plans to install fuel cell systems in its trucks, which will run on green hydrogen produced from renewable sources such as wind and solar. This move will significantly reduce the carbon emissions of Reliance’s transport fleet and contribute towards achieving its net-zero carbon goal.

In addition to green hydrogen-powered trucks, Reliance New Energy is also investing in a green hydrogen production plant. The company plans to use renewable energy sources such as wind and solar to produce green hydrogen, which will be used to power its trucks. This move by Reliance New Energy is a step towards reducing the carbon footprint of the transportation industry and promoting sustainable energy production.

Backward integration involves a company integrating its operations with those of its suppliers, while forward integration involves integrating with customers or distributors. The purpose of backward integration is to gain control over the supply chain, reduce costs, and increase efficiency. On the other hand, forward integration helps a company gain control over the distribution channel, reduce dependence on intermediaries, and improve customer relationships.

Reliance New Energy, a subsidiary of Reliance Industries, is adopting both backward and forward integration strategies to optimize its cost of green hydrogen production and strengthen its position in the renewable energy market. The company has acquired companies such as Sterling Power, REC Solar Plant, and Nextwefer, which are involved in energy storage solutions and the manufacturing of solar cells and modules. Additionally, it has also entered into a joint venture with an electrolyzer company to produce green hydrogen.

Through these acquisitions and partnerships, Reliance New Energy is integrating its operations with those of its suppliers and customers. This integration will help the company gain control over its supply chain, reduce costs, and increase efficiency in green hydrogen production. Furthermore, by entering into the distribution business, the company can reduce its dependence on third-party distributors and improve its customer relationships.

The integration of Sterling Power and REC Solar Plant will provide Reliance New Energy with the necessary expertise and resources to develop and implement its green hydrogen strategy. The acquisition of Nextwefer will help the company in developing a next-generation technology platform for the energy sector, which will enable it to create a more sustainable future.

Overall, the backward and forward integration strategies adopted by Reliance New Energy will help the company optimize its cost of green hydrogen production, strengthen its position in the renewable energy market, and achieve its goal of becoming a net-zero carbon company by 2035.

Sterling Power and REC Solar Plant Acquisition

Reliance New Energy has recently acquired Sterling Power and REC Solar Plant to strengthen its position in the renewable energy market. Sterling Power is a leading provider of energy storage solutions, while REC Solar Plant is a manufacturer of solar cells and modules. These acquisitions will provide Reliance New Energy with the necessary expertise and resources to develop and implement its green hydrogen strategy.

Green Hydrogen in Fertilizer Production

Reliance New Energy has a disturbing ticket size nature, which means that it is a large player in the market but is also relatively new and untested. The company’s plans to enter the green hydrogen business could disrupt the entire energy industry, but it also carries significant risks.