Breaking away from the Hero Groups traditional business interest in auto/auto ancillaries, finance and IT enabled services, the new thinking brought in by the third generation at the Munjal family is getting the group to explore new opportunities in here-thereto uncharted territory of renewable energy. Under the leadership of Rahul Munjal, the Hero Group has initiated a business plan to launch a nationwide green initiative by taking up projects in the renewable energy space under the umbrella of Hero Future Energies. The managing director of the company shares his vision of creating a profitable entity that serves a larger national purpose of expanding the countrys green footprint in a conversation with Subhash Narayan. Edited excerpts:
Of all the new sectors, why did you choose to enter the renewable energy space even when it has failed to achieved the desired level of growth?
The story of the group is that we have grown in the past with the new generation entering businesses. Everyone has done this but in the past it was not so much about diversification but expanding opportunities in auto and auto ancillary business. But now the third generation has aspirations and knowledge to diversify. And why shouldnt we? If we can be in a business that has social relevance and at the same time gives another opportunity for the group to make money, we should be there. A country, which is heavily dependent on fossil fuels for meeting energy needs and faces huge deficit, should develop a strong renewable base for a attaining balanced growth.
So what will be the focus of the new company? Is it going to explore all aspects of renewable energy opportunities or limit itself to ones that are getting acceptable in the country?
Our aim is not to limit ourselves. Opportunities will be explored in areas where it makes a business sense. However, as per the initial plan, we would be exploring solar, wind and hydro power segments. We already have presence in wind with a 37.5 MW project in Rajasthan. For hydro, the strategy is to go for acquisitions, as we are convinced that we will not do greenfield. This will, however, depend on good targets for acquisition coming on board. This strategy would be re-evaluated after three years. If after three years there is a need to re-look this strategy, we will do so.
What is the plan of the company in terms