Adani Group’s big bet in smart meter market, buys this giant for 3,050 crores

Gautam Adani-led Adani Group has taken a major step to strengthen its hold in the country’s power sector. Group company Adani Energy Solutions Limited (AESL) has completed the acquisition of smart meter installation company IntelliSmart Infrastructure. In a disclosure to the stock market on Friday, the company said that the entire deal has been done for Rs 3,050 crore. The move will significantly increase Adani Group’s presence in the country’s smart metering space.

Which companies made such a big deal?

Adani Energy Solutions has acquired 100 percent equity share capital of IntelliSmart Infrastructure. The stake has been purchased from the National Investment and Infrastructure Fund (NIIF) and Energy Efficiency Services Limited (EESL). Rs. 3,050 crore transaction includes the purchase of 100 per cent stake in IntelliSmart as well as the redemption of the company’s Optionally Convertible Debentures (OCD) by NIIF. Let us tell you that NIIF is India’s sovereign-anchor alternative asset manager. At the same time, EESL is a joint venture of major government companies under the Ministry of Power.

Started in June, got approval in October

The foundation for this mega deal was laid in June this year. In June, Adani Energy Solutions announced a binding agreement to buy 100 percent stake in IntelliSmart. According to the rules, for deals above a certain limit, approval is required from the Fair Trade Regulator i.e. Competition Commission of India (CCI). CCI monitors unfair trading practices in the market. It also promotes fair competition. The acquisition has now been completed after the CCI approved Adani Energy Solutions’ proposal on October 30.

What do both companies do?

IntelliSmart Infrastructure provides advanced metering infrastructure for electricity in the country. Apart from this, this company also works to install some smart gas meters in the country. On the other hand, Adani Group company AESL is already engaged in the business of setting up electricity transmission and distribution and advanced metering infrastructure in the country.

The smart meter market is growing rapidly

The smart meter market in India is going to grow very fast in the coming time. Executive Director of Radius Synergies International Dr. According to Bharat Bhushan, smart metering systems are going to expand rapidly in India based on strong government policies focused on energy efficiency. He said that India’s smart meter market was valued at $219.7 million in 2023, which is expected to grow to $3,179.5 million by 2032. During this period, this market will grow at a compound annual growth rate (CAGR) of 34.57 percent. Dr. Bhushan believes that old meters should be replaced with smart meters. This move could prove to be a game changer for India’s power sector, which will have a profound impact on the country’s economy.

How will customers get rid of ‘billing shock’?

Along with installing smart meters, electricity distribution companies (DISCOMs) play the most important role in their management. These companies are responsible for delivering electricity directly to consumers. They have to integrate smart meters into existing systems, monitor installations and manage data so that power distribution is reliable.

Smart meters are also very beneficial for common people. These meters not only track electricity consumption, but also send real-time data directly to the discom’s system. This allows consumers to instantly know how much electricity they are using and how much it is costing. This helps to avoid a sudden huge bill shock at the end of the month i.e. ‘billing shock’. As the meter reading process is automatic, the need for manual checking is eliminated. This greatly reduces the risk of human error, estimated billing or incorrect readings. This creates a very transparent and reliable billing experience for consumers as well as power companies.