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Aditya Birla Group will acquire British energy giant Shell’s Indian renewable energy platform Sprng Energy in a $1.8 billion deal, including debt, giving the Indian conglomerate a significant boost in the country’s fast-growing clean energy market.
The acquisition, announced on Monday, will add 5 gigawatts (GW) of renewable energy capacity to Aditya Birla Renewables’ portfolio, taking its total capacity to 9.3 GW and placing it among India’s largest renewable energy developers.
The transaction marks one of the biggest clean energy acquisitions in India and comes as the country accelerates its transition towards non-fossil fuel power generation to meet rapidly rising electricity demand.
Grasim Industries, the flagship company of the Aditya Birla Group, said the final equity consideration would be determined after customary adjustments for debt and cash. The acquisition will be funded through a combination of debt, equity infusion from Grasim and capital from funds managed by Global Infrastructure Partners (GIP), the infrastructure investment arm of BlackRock.
Kumar Mangalam Birla, chairman of the Aditya Birla Group, said the acquisition would strengthen the conglomerate’s role in India’s clean energy transition.
“This acquisition positions us to participate meaningfully in one of the largest energy transformations underway anywhere in the world,” Birla said in a statement.
Sprng Energy owns about 3.3 GW of operating solar and wind assets and another 1.7 GW of contracted projects under development, making it one of India’s major renewable energy platforms.
The acquisition comes as India seeks to expand its non-fossil fuel power capacity to 500 GW by 2030 from around 283 GW currently. The government’s clean energy push, coupled with rising power demand, has attracted billions of dollars in investments from domestic conglomerates, global infrastructure funds and international energy companies.
The country’s renewable energy sector is currently dominated by Adani Green Energy and ReNew Energy, but the latest acquisition significantly strengthens Aditya Birla Group’s position in the market.
For Shell, the sale reflects Chief Executive Wael Sawan’s strategy of sharpening the company’s focus on businesses offering higher returns while reducing exposure to capital-intensive renewable power generation.
Under Sawan, Shell has shifted investments towards liquefied natural gas (LNG), upstream oil and gas production and energy trading, while scaling back several low-carbon projects. The company has also slowed its pace of emissions reduction compared with earlier plans as part of a broader strategy to improve shareholder returns.
Reuters had reported in February that Shell was evaluating strategic options for Sprng Energy. The British energy major had acquired the platform in 2022 for about $1.55 billion.
The divestment is part of a wider trend among global energy companies. Oil majors including BP and Norway’s Equinor have also moderated renewable energy investments in recent years, redirecting capital towards their core oil and gas businesses as fossil fuel operations continue to generate stronger returns.
Shell said the transaction is expected to be completed by the end of 2026, subject to regulatory approvals.
The deal also highlights sustained confidence in India’s renewable energy sector despite a global slowdown in clean energy spending by some oil majors. Falling renewable energy costs, supportive government policies and robust electricity demand continue to drive consolidation and large-scale investments across the sector.
With inputs from agencies.
