Dubai Group (DG), the leading diversified financial services company of Dubai Holding, has acquired a 40 per cent stake in India's Chiranjjeevi Wind Energy Limited (Cwel), a wind turbine manufacturer in India.
The investment was made by Dubai Ventures, the equity investment company of Dubai Investment Group, a subsidiary of Dubai Group.
Dubai Investment Group, which aims to build a diversified portfolio of assets in renewable energy, has made focused investments, through its subsidiary Dubai Ventures over the past two years in the renewable energy sector across Asia, with exposure in direct renewable energy sources and upstream producers of raw material used in renewable energy.
Abdulhakeem Kamkar, Chief Executive Officer of Dubai Investment Group, said: "We are pleased to partner with India's Cwel as part of our continuous commitment to finding solutions towards a better future. The world we live in is greatly impacted by global warming and we believe endorsing a project on renewable energy alternatives is a step in the right direction for mitigating environmental degradation.
"While Cwel will have a strong base in India, we intend to explore, along with Cwel, other regions, especially Middle East and Africa, where there is potential to set up wind farms," he said.
Cwel has recently signed a memorandum of understanding with two German companies: Frisia for acquiring the entire design, technology, intellectual property of 850KW wind turbines, and Euros for transfer of technology to manufacture rotor blades. It has installed more than 150 wind-turbine machines in India.
It recently received a $25 million (Dh91.7m) order from India Globalisation Capital for setting up a 24MW wind farm in Karnataka, India. The company will operate and maintain the wind energy farm, which is expected to be operational within a year.
Cwel has also been mandated to set up wind farms to generate up to 260MW by Karnataka Thermal Power Corporation, owned by the Karnataka Government.
Dubai Investment Group's investments in renewable energy include:
China: Biomass power plants, waste-to-energy plants, soya bean oil producer, as well as fertiliser and methane gas producers. China and the
Philippines: Hydroelectric power plants. Malaysia and Indonesia: It holds stakes in crude palm oil and kernel oil plantations.
Malaysia: The group recently invested in bio-diesel and glycerine producers. Indonesia: It invested in ethanol (sugar cane) producers.