ACME Solar Holdings Limited is a renewable energy company in India with a portfolio of solar, wind, hybrid, and firm and dispatchable renewable energy projects. It is one of the largest renewable energy independent power producers in India and among the top 10 renewable energy players in India over the years, they have diversified and expanded its portfolio from solar power projects to become an integrated renewable energy company in India.
The ACME Group is promoted by Manoj Kumar Upadhyay and ACME Cleantech was incorporated in 2003. It originally operated as a provider of energy management solutions to wireless telecommunications operators in India and subsequently entered into the renewable energy generation business in 2009. The ACME Group has been one of the early entrants in the solar IPP business in India and commissioned its first solar power plant in Fiscal 2012.
Strengths And Risks
+ Large renewable energy player: ACME Solar Holdings is one of the largest renewable energy independent power producers in India and among the top 10 renewable energy players in India in terms of operational capacity, well positioned to capitalize on strong industry tailwinds in IPP business.
+ End-to-end value chain capabilities: Company has an integrated in-house approach to executing its renewable projects across the entire life cycle of developing a project, from PPA signing to the project achieving commercial operations within 18 to 24 months and subsequently operating and maintaining the project.
+ Expansive portfolio: Company has an expansive portfolio of projects diversified across different renewable energy technologies. These projects are located across 10 Indian states.
+ Long-term stable cash flows: Almost all of company's portfolio is contracted through long term power purchase agreements with central and state government-backed entities typically for a period of 25 years.
- Competitive project auctions: Comapny relies on highly competitive renewable energy power project auctions. Further, its future growth is dependent on successfully executing Under Construction Awarded Projects and Under Construction Contracted Projects.
- Power Purchase Agreements : Company is dependent on Power Purchase Agreements (PPAs) to sell power and generate its revenue
from operations. Further, the terms of its PPAs may expose it to certain risks that may affect future
results of operations and cash flows.
- Client concentration: Company's business is dependent on top 10 off-takers, which contributed 89.97%, 89.15% and 87.77% of its revenue from operations in Fiscal 2024, 2023, and 2022, respectively. The loss of any of these off
takers could have an adverse effect on business.
- Infrastructure: Any constraints in the availability of the electricity grid, inability to obtain access to transmission lines, or access to agricultural land, land owned by the state governments or by private parties where power projects are located, or will be located can hamper business.
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