Birla-Sprng Energy Deal - Growth Enabler for ABRL and Grasim Industries.

Aditya Birla Group recently announced the acquisition of Sprng Energy Ltd for its 3.3 GW of renewable power capacity and 1.7 GW of power capacity under construction, making a total of added capacity +5 GW.

The development comes amid a range of deal happening in the sector being led by Adani Green Energy, ReNew Power, Tata Power and NTPC Green Energy. The deal provides Birla with an entry to the top-tier of the sector, becoming the fifth largest company by renewable power capacity totalling 9.3 GW post-acquisition.

The acquisition of Sprng Energy more than doubles the pre-acquisition capacity of ABRL of merely 4.3 GW.

Other deals that have taken place in the sector are Adani Green Energy’s acquisition of SB Energy India in 2021, valued at about $3.5 billion (around Rs 26,000 crore), and ONGPL’s purchase of Ayana Renewable Power with a capacity of 4.112 GW in Feb 2025 for about $2.3 billion (Rs 19,500 crore).

Sprng Energy was acquired at a valuation discount of $1.8 Bn (Enterprise Value), which is Rs. 17,200 Crore, allowing ABRL to diversify from the commercial and industrial (C&I) customers into the utility market, which includes power supply to state power utilities, where the real value lies. ABRL also expects to double their capacity to 20 GW by FY2030

This growth is possible as the sector is expected to grow by a CAGR of ~15% over FY2026-FY2030, with the renewable power capacity to double to ~500 GW. The market value of the sector as of 2025 is Rs. 2,30,952 Crores, which is expected to reach Rs. 3,56,088 Crores by FY2030.

As per IBEF Research, India’s renewable energy journey is witnessing unprecedented momentum, with strong policy support, record investments, and rapid capacity expansion across solar, wind, hydro, and green hydrogen. As the nation moves closer to its 2030 target of 500 GW, it is positioning itself as a global clean energy leader. With innovation, strategic collaborations, and large-scale adoption driving the sector, India is set to power its growth sustainably while creating new opportunities for industries, communities, and future generations.

However, the only bottleneck to this growth and the risk is that the energy generated from standalone solar and wind power plants is unreliable due to their seasonal or intermittent nature. This would create instability in the grid in case of interruption to power generation by renewable energy sources. In India, the grid infrastructure is majorly built based on traditional energy sources, which possess grid inertia leading to grid stability, which variable renewable energy sources lack.