Sterlite Power targets investment of $ 4 bn in Brazil by 2022

The Indian group Sterlite Power, which won concessions to build power transmission lines in Brazil last year, expects investment of $ 4 billion in energy projects in Brazil by 2022.

Looking for better returns and a wide range of opportunities for investments in Brazil, Sterlite Power’s idea is to grow rapidly in the country and establish its headquarters in São Paulo as a base for future expansion.

“We are already committed to $ 1 billion (in projects), and we are open to expanding this three or four times over the next three or four years,” said Sterlite Group CEO Pratik Agarwal.

He further added that Sterlite has structured a local team and is currently looking for an experienced executive to take command of Brazilian operations and lead an expansion that may pass in the short or medium term due to incursions in other countries.

“São Paulo will be our headquarters in Latin America to look beyond Brazil,” Agarwal said. He cited Argentina, Chile, Mexico and possibly Peru as potential countries of interest, and pointed out that the advance to these markets could take place over a period of one to three years.

The executive also pointed out that in addition to participating in government auctions for new projects, Sterlite will also evaluate possible acquisitions as part of its strategy in the country. The preference in all investments, according to him, is for “complex” projects, in which he evaluates that the company believes it is better able to generate value and obtain advantages over competitors.

Sterlite caught the attention of the Brazilian energy industry in its first bid in April last year to take out a broadcast concession with a discount of 58.9 percent over the government’s maximum allowable revenue for the project. The company also took one more project at that same event and a third at another auction in December, when it got the largest venture offered to investors.