**Fortum Exits India’s Renewable Energy Market with Full Sale to Hexa Climate Solutions**
Finland’s state-owned energy company, Fortum Oyj, is withdrawing from the Indian renewable energy sector by selling its subsidiary, Fortum India Pvt Ltd (FIPL), to New York-based Hexa Climate Solutions, backed by I Squared Capital. This transaction includes the complete acquisition of FIPL, its management team, and associated carbon credits. The deal marks a significant milestone in Fortum’s exit from India, a market it entered in 2012.
Initially, Fortum had proposed a deal to dilute its majority stake in FIPL and invest approximately $300 million in future projects. However, Hexa Climate Solutions has opted for a full acquisition, taking over 100% of the company along with its 40-member team. FIPL’s portfolio features a 206 MW commercial and industrial solar-wind hybrid project, alongside an additional 600 MW of projects that are ready for development.
The sales process, managed by EY, attracted five bidders, including Japan’s Marubeni Corp, Dutch pension fund APG, and infrastructure fund manager AP Moller Capital. A total of 10 companies, including steel and mining giant ArcelorMittal, signed non-disclosure agreements for the transaction, referred to as Project Samsara. The exact value of the deal remains undisclosed.
Fortum’s decision to exit aligns with its Nordic strategy, which emphasizes reducing exposure in India. The company has previously announced plans to limit its operations in the country, having already sold projects totaling 1.1 gigawatts (GW). In May 2024, Fortum indicated that it would not make further commitments in India and would evaluate its remaining operations.
Sanjeev Aggarwal, founder and executive chairman of Hexa Climate Solutions, and Sanjay Aggarwal, president of Fortum India, along with representatives from EY, declined to comment on the transaction. A spokesperson for Fortum stated that as a publicly listed company, they do not comment on market rumors or speculation.
As Fortum completes its exit from the Indian market, the implications for the renewable energy landscape remain to be seen, particularly regarding future investments and developments in the sector.
**FAQ**
*What does Fortum’s exit from India mean for the renewable energy market?*
Fortum’s exit signifies a shift in the competitive landscape of India’s renewable energy sector, potentially opening opportunities for other investors and companies to fill the gap left by Fortum’s departure.