Swiss-based responsAbility Investments AG an asset manager specializing in development-related sectors with assets under management of USD 1.4 billion has picked up a minority stake in Punjab Renewable Energy Systems (PRES) -an organised fuel aggregation and supply companies focused on agriculture residue – and will support the current management team via representation on the Company’s Board. This investment will go towards driving PRES’ planned expansion into new locations in India and abroad.
India has a high energy deficit of more than 9%, and a large import bill dominated by fossil fuels that contributes to 15% of its current account deficit. In addition, an estimated 100 million tons of agriculture residue is burnt off every year causing high levels of pollution. Punjab Renewable Energy Systems offers a simultaneous solution to both problems by providing an organized supply chain to cater to an industry where fuel supply shortages are a concern, by aggregating, processing and distributing biomass efficiently. Furthermore, the Company provides an additional source of rural income generation, a potential that could be over half of the FY13 MGNREGA budget of INR 330 billion.
Intellecap acted as the sole advisor for an equity deal between Punjab Renewable Energy Systems and responsAbility.