In a major financial move, Inox Wind Limited, one of India’s leading wind energy solution providers, has signed a consortium agreement with a group of 10 banks, led by ICICI Bank. This agreement, totalling ₹2,200 crore, reflects the confidence of the banking community in Inox Wind’s financial strength. The company revealed that these limits, predominantly non-fund based, could rise to ₹2,400 crore based on working capital assessments.

This marks a significant milestone for Inox Wind as the limits have been granted without recourse to corporate guarantees from its parent company, Gujarat Fluorochemicals Limited. With this arrangement, any prior corporate guarantees or support extended by Gujarat Fluorochemicals to Inox Wind have either been vacated or are set to be vacated shortly. This underscores the independent financial standing of Inox Wind, following successful fund raises and operational improvements that have rendered the company’s balance sheet net cash positive.

Banking sector trust in Inox Wind’s financial strength

Inox Wind’s Chief Financial Officer, Akhil Jindal, highlighted the importance of this arrangement, stating that the consortium agreement is the result of several quarters of work. He attributed it to the strong operational performance of the company and a robust outlook. Jindal also acknowledged the support of their banking partners, remarking that Inox Wind has consistently honoured its financial commitments without causing any losses to banks and financial institutions.

The agreement with ICICI Bank and a host of other marquee private and foreign banks demonstrates the growing confidence in Inox Wind’s trajectory. With the company posting improved performance, it has now been able to negotiate financial terms without needing further guarantees from Gujarat Fluorochemicals, a significant change from prior support structures.

Wind energy sector expanding rapidly

Inox Wind is part of the $12 billion InoxGFL Group, which has a legacy of more than nine decades in chemicals and renewable energy. As a fully integrated wind energy player, Inox Wind operates four manufacturing facilities across India, with a production capacity of 2.5 gigawatts annually. Their latest 3-megawatt series wind turbines are expected to strengthen their position in the Indian wind energy market.

Further boosting their portfolio, Inox Wind’s subsidiary, Inox Green Energy Services Limited, is currently the only listed wind O&M (operations and maintenance) services company in India, managing 3.35 gigawatts of wind energy and anticipating significant growth in the near future. Another subsidiary, Resco Global Wind Services Pvt. Ltd., plays a key role in providing EPC (engineering, procurement, and construction) services and developing common infrastructure for wind energy projects.

Expert opinion: growth in wind energy sector is crucial

Experts in the renewable energy sector see this development as a positive signal for both Inox Wind and the broader wind energy market in India. The global trend towards sustainability and India’s ambitious renewable energy goals create a favourable environment for companies like Inox Wind. Their ability to independently secure significant financial backing without corporate guarantees sets a precedent for other firms aiming to achieve similar self-sustained growth in the renewable energy domain.

With a comprehensive service offering that covers everything from concept to commissioning and O&M, Inox Wind is positioned to benefit from India’s expanding wind energy capacity, which will play a pivotal role in meeting the country’s clean energy targets.

  Akhil Jindal, Gujarat Fluorochemicals Limited, ICICI Bank, India, Inox Green Energy Services Limited, Inox Wind, Mumbai, National Stock Exchange of India, Resco Global Wind Services Pvt. Ltd.