Sterlite Power Transmission Ltd.’s unit has successfully secured ₹725 crore in funding, backed by GEF Capital Partners and Enam Holding. This significant investment is set to bolster the company’s manufacturing capabilities, particularly in power conductors, Optical Ground Wire (OPGW), and power cables. A notable part of this expansion includes the establishment of a new plant in Baroda, which will further enhance Sterlite Power’s production capacity.
Investment Details and Stakeholders
The funding round was led by GEF Capital Partners and Enam Holding, who are collectively investing ₹725 crore into Sterlite Power Transmission Ltd. (SPTL). According to Pratik Agarwal, Managing Director of Sterlite Power, GEF Capital Partners is contributing ₹450 crore, while Enam Holding is providing the remaining ₹275 crore. Although Agarwal did not specify the exact stake percentages, he mentioned that each investor would hold a single-digit minority stake in the unit.
Company Restructuring and Strategic Goals
Recently, Sterlite Power underwent a significant restructuring process, resulting in the creation of two distinct entities: the Transmission Infrastructure business, operating under Sterlite Grid 5 Limited, and the Global Products and Specialized EPC services, which continue under SPTL. This strategic move aims to allow each business unit to pursue independent growth strategies and attract tailored capital investments.
Capital Expenditure and New Plant
Out of the ₹725 crore raised, ₹400 crore will be allocated to a capital expenditure program. This includes the establishment of a greenfield plant in Baroda dedicated to the production of 400 KV cables. Currently, Sterlite Power operates four plants across India: two in Silvassa (Dadara & Nagar Haveli) and one each in Odisha and Uttarakhand. The remaining funds will be used to support working capital and other business opportunities.
Global Demand and Market Opportunities
The investment comes at a time when global demand for electrification and decarbonization is driving the need for power cables and conductors to unprecedented levels. Agarwal highlighted that geopolitical shift and a growing sentiment to source from India, rather than China, are propelling business growth. This trend positions Sterlite Power to capitalize on the rising demand and expand its market presence both domestically and internationally.
