Tata Power Acquires ERES-XXXIX Power Transmission Limited to Strengthen Transmission Network

Key Takeaways from the Acquisition

• Tata Power acquired 100% of ERES-XXXIX for ₹18.56 crore in cash, with full ownership transferring on November 14, 2024.
• The SPV will establish a 765 KV transmission line and GIS substations from Angul to Gopalpur in Odisha, aiming for completion by December 31, 2027.
• The Ministry of Power has granted all necessary approvals, facilitating seamless integration of the SPV into Tata Power’s operations.

The acquisition, finalised through a Share Purchase Agreement (SPA) for ₹18.56 crore, reinforces Tata Power’s commitment to expanding its transmission capabilities, especially in the state of Odisha.

On 27 March, 2024, ERES-XXXIX was incorporated for laying a complete transmission line in Odisha, from Angul to Gopalpur, covering nearly 190 kilometers. A double-circuit 765 KV line, GIS substation at Gopalpur, and associated infrastructure are included in it. The commercial operation of ERES-XXXIX is expected on December 31, 2027. This speaks volumes of Tata Power's commitment to enhancing grid connectivity and reliability in the region.

About Tata Power Company Limited

Tata Power Company Ltd is India's largest vertically integrated power company focused on electricity generation, transmission, and distribution. It is committed to renewable energy and seeks to continue its pursuit of producing 100% clean electricity. Its total energy capacity is now at 14,381 MW comprising 3,191 MW of solar, 1,007 MW of wind, and 880 MW of hydro; renewable capacity under construction amounts to 3,760 MW. The company operates more than 4,900 public EV charging points across 442 cities and will look to touch 1 lakh EV charging stations by 2025. Tata Power also has a significant presence in solar EPC projects with an order book running into over ₹18,700 crore.

Key Takeaways from the Announcement

• New CKD facility in Manaus with Grupo Multi, in addition to Dafra, to increase production capacity in Brazil.
• The partnership with Grupo Multi will create direct and indirect jobs, boosting the local economy.
• Royal Enfield aims to expand its dealership network to 36 stores across Brazil by the end of 2024.

This addition bolsters Royal Enfield’s capacity to meet rising demand in Brazil, its largest market outside India, and emphasises the brand’s commitment to expanding in Latin America.

The new Manaus facility will complement the existing CKD unit operated by Dafra, reinforcing Royal Enfield’s production capabilities in the region. Grupo Multi's established manufacturing infrastructure in Brazil was a strategic factor in selecting the company as a partner. The new assembly plant will not only enhance production but is also projected to generate significant employment, supporting local economic development in São Paulo, Louveira, and Manaus.

Commenting about the announcement, Gabriel Patini, Executive Director for Latin America at Royal Enfield, said, "We are introducing a second partner for production; now we will have both Dafra and Grupo Multi assembling motorcycles to more swiftly meet the demands of the Brazilian market. The new CKD reinforces our commitment to bringing all models that make sense to our market and delivering more promptly to our customers so they can quickly enjoy the Royal Enfield lifestyle to the fullest. Therefore, the CKD partnerships with Dafra and Grupo Multi are crucial for Royal Enfield to take this step forward. We want our installed capacity to be fully operational as soon as possible." 

Royal Enfield plans to expand the dealerships in Brazil to 36 stores by the year-end of 2024, improving after-sales and readjusting preparatory measures for new models such as Himalayan 450, Shotgun 650, Guerrilla 450, Classic 650, and Bear 650. This strategic growth should be able to facilitate the increasing demand from the consumers for the signature motorcycle experience for the brand's customers in Brazil.

About Royal Enfield

Royal Enfield was founded in 1901 and is the oldest motorcycle brand still in production. It remains a niche manufacture specialising in mid-size motorcycles from 250cc to 750cc. Known for its classy yet contemporary designs, Royal Enfield provides an accessible riding experience which the company refers to as "Pure Motorcycling." Headquartered in Gurgaon, Haryana, the company is an Eicher Motors group company with over 2,000 stores in India and nearly 850 stores in the international markets, with state-of-the-art production facilities in India and six CKD assembly plants globally. The brand continues to build new models and is now a platform for iconic events like Motoverse in Goa, bringing all riders together worldwide.

About Grupo Multi

Multi Group is a diversified electronics and IT player with more than 5,500 products in its portfolio across various categories. With State of the Art Production facilities within Brazil's Manaus Free Trade Zone and an engineering lab in China, focused solely on the needs of Royal Enfield CKD operations, it is strengthening its position in the automotive segment.

Key Takeaways from the Joint Venture

• Reliance Industries and Disney have signed a joint venture; the two firms have merged their major entertainment and sports assets to solidify a greater hold in India's media arena.
• RIL, through its wholly-owned subsidiary RISE, has divested 65% equity stake in Football Sports Development Limited to Viacom18 for ₹94.54 crore, while FSDL continues to be an operational entity controlled by RIL
• RIL raised its stake in Viacom18 to 70.49% by purchasing Paramount Global's 13.01% equity for ₹4,286 crore.

As part of the venture, RIL and its subsidiary, RISE Worldwide Limited, sold their 65% equity stake in Football Sports Development Limited (FSDL) to Viacom18 Media Private Limited, a material subsidiary of Network18 Media & Investments Limited, for ₹94.54 crore. This investment was subsequently transferred to Star India Private Limited (SIPL) through a prearranged scheme, allowing FSDL to remain under RIL’s control.

The company also acquired 63.16% of holding in Star Television Productions Limited, an existing Disney shareholder, for ₹ 211.59 crores. Intellectual property rights in trademarks "STAR" and "HOTSTAR" are held by STPL. The subsequent process of amalgamation is likely to merge STPL with SIPL. Subsequently, the shares of SIPL will be taken over by RIL as consideration for this amalgamation, which again will further consolidate the brand assets held by the former.

In a separate transaction, RIL acquired Paramount Global’s 13.01% stake in Viacom18 for ₹4,286 crore, raising its ownership in the media company to 70.49% on a fully diluted basis. Moreover, RIL made a substantial investment of ₹11,500 crore in SIPL, receiving 26.05 crore equity shares in return. Following this, SIPL issued 74.61 crore additional shares to Viacom18 under a composite scheme, finalising SIPL’s control structure.

The joint venture’s new ownership distribution stands with Reliance holding 16.34%, Viacom18 at 46.82%, and Disney owning 36.84% in SIPL. This partnership represents a major strategic move, strengthening Reliance’s position across sports, entertainment, and digital media in India.

About Reliance Industries Limited

Reliance Industries Limited is a multinational conglomerate based in Mumbai, India. This is one of the biggest companies in India, dealing with operations of all kinds. Reliance firms have dominated all the sectors linked to the energy line, more especially in refining, petrochemicals, exploration and production, and renewable energy. Retail is another sector that has been advanced by Reliance, providing consumer electronics, apparel, groceries and e-commerce services. Some ventures by Reliance include telecommunications, 4G and 5G wireless services, and financial services. Reliance was also known to publicise its pioneering business practices and contributions toward India's economic development. The company is a market leader in many lines of business. It follows the path of ensuring that its operations promote sustainable development and social responsibility in the communities that it operates in.

Key Takeaways from Great Eastern Delivery:

• G E Shipping has delivered its 2005-built Suezmax Crude Tanker, Jag Lalit, to its buyers as part of a sale contract signed in September 2024.  
• Following the delivery, the company’s fleet now includes 40 vessels, comprising 27 tankers and 13 dry bulk carriers, totalling 3.15 million dwt.  
• The fleet of tankers consists of 5 crude carriers, 18 product carriers, and 4 LPG carriers.  
• G E Shipping has also contracted the sale of an MR product tanker in October 2024, expected to be delivered by H2 FY25.

The vessel was sold under a contract signed in September 2024. With the delivery of Jag Lalit, the company’s current fleet now consists of 40 vessels. This includes 27 tankers (comprising 5 crude carriers, 18 product carriers, and 4 LPG carriers) and 13 dry bulk carriers (2 Capesize, 8 Kamsarmax, and 3 Supramax vessels), totalling 3.15 million deadweight tonnes (dwt).

In addition, G E Shipping has agreed to sell another MR product tanker, contracted in October 2024, which is expected to be delivered in the second half of the financial year 2025.

Great Eastern Shipping Limited

Founded in 1948 by the visionary Mulji (Sheth) brothers and the Bhiwandiwalla family, Great Eastern Shipping Company Limited (G E Shipping) began its journey with the acquisition of the SS *Fort Elice*, a mothballed Liberty ship. With entrepreneurial leadership from Vasant J. Sheth, the company quickly expanded from sea-logistics support to tramp shipping and offshore oil field services, setting new industry standards. Over the years, G E Shipping has diversified and adapted, consistently leading the way in the shipping and offshore sectors. Today, the company’s legacy of innovation and resilience continues to shape its future success.