Reliance New Energy Solar, a wholly owned subsidiary of Reliance Industries (RIL), along with strategic investors Paulson & Co. Inc. and Bill Gates, and a few others, has announced an investment of USD 144 million in Ambri Inc, an energy storage company based in Massachusetts, USA. Reliance Industries has kicked off its green energy plans, announcing a $50 million investment in Ambri Inc, a US based energy company specialising in long duration energy storage systems.

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: Reliance New Energy Solar to invest $50 million in US-based energy storage company Ambri Inc

Harshvardhan Dole, Vice President, Institutional Equities at IIFL, said: “It is a relatively small amount invested by RIL, but bear in mind, some of these are start-up initiatives, to start with a very small seed capital and as they scale up, the incremental investment goes to the initial investor. The press release of RIL does mention that these two entities are in talks to set up the giga factory in India. So, we will await more details, but certainly a step forward from the plans that were unveiled at the AGM.”

He further added: “As of now, if you look at the battery storage space in India, particularly while the government has announced the incentive scheme, a lot of players have drawn plans to invest into the space. A lot of these plans remain on the drawing board, nobody is actually willing to disclose greater detail. In that context, RIL’s plan will certainly shackle the investments and the other industry players, there is no doubt about it. The approach that RIL has is basically an integrated approach, whereby they will offer an integrated solution, right from manufacturing of solar cells to the battery storage solution. So to that extent, it will definitely have an impact across the chain and that is what we had actually highlighted in the note that we had put out post the AGM that RIL will certainly disrupt the whole value chain in the energy space.”

On next trigger for the stock, Dole said: “From a stock perspective, there are two key triggers. Future deal is quite evident that it is going to take some time for it to be made. The next two key triggers are, of course, the launch of the phone, along with Google on the 10th of September, how the plans are and how that will lead to incremental market share is to be seen. That is the first visible trigger. Second is of course, in terms consumerization of deal with the strategic investor from the O2C front and the valuation there. Third, bits and pieces, of course, these news or news debates or some initiative, which give clarity on the green initiative, because the plans are grand, but those have to be stitched together. These are the key triggers I will watch, from a stock perspective.”

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(Edited by : Dipika)

First Published:Aug 10, 2021 12:50 PM IST