Reliance New Energy Solar’s acquisition of Lithium Werks is a step in the right direction, said Harshvardhan Dole, vice president-institutional equities at IIFL.

The wholly-owned subsidiary of Reliance Industries to acquire all assets of lithium-ion battery maker Lithium Werks for USD 61 million. The company has operations in the US, Europe and China and has a production capacity of 200 megawatts.

In an interview to CNBC-TV18, Dole said, “This acquisition puts one more milestone towards completing the entire value chain and that is what we have been iterating that Reliance is perhaps the only company in the sector who is taking a differentiated approach in building the entire value chain.”

“So, it’s a step in the right direction and sum-of-the-parts (SOTP) perspective, what we are currently valuing is only the solar part of the business, but as more granularity towards how scale-up in such acquisitions are likely to happen, we will try and pin that in,” he said.

Also Read: RIL acquires Lithium Werks for $61 million

Disclaimer: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

For the entire interview, watch the video

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