June 2015 marked the announcement of a joint venture between Japan’s largest mobile carrier SoftBank with Indian telecom operator Bharti Enterprises and Taiwan’s Foxconn Technology Group, with the goal of generating 20GW of renewable energy and a US $20 billion investment each.
With a series of investments in India already, SoftBank claims its investments in the country will exceed $10 billion during the next 5 to 10 years. Masayoshi Son, Chairman, and CEO of SoftBank stated that the Japanese telecom and internet giant will make its first $350 million investment in a solar project in India. “We have already invested US $2 billion and we are interested in investing more,” he said. “India has a great future. We are interested in investing in Internet companies and also in solar energy. We would make strong commitments.”
According to Son, power purchase agreements would need to be signed with off-taker states in order to achieve the electricity generation target.
The past two years have seen SoftBank invest US $627 million in online retail marketplace Snapdeal, US $210 million in leading taxi-hailing app Ola Cabs and US $200 million for a 35 percent stake in Indian mobile advertising network, InMobi. Further investments include real estate website Housing.com and hotel-booking and shopping delivery apps Oyo Rooms and Grofers. Now it has tabled its biggest deal yet with an audacious yet considered £24bn takeover of the jewel in the crown of the UK technology industry, ARM Holdings Plc.
SoftBank has existing investments among Barthi Enterprises; including a JV with the Bharti Group, Bharti SoftBank, among these also the mobile application Hike Messenger. Son countered concerns about whether high valuations would lead to potential cuts in planned investments in India by saying: “We are very very confident about India, so we will increase investment. I am not worried. I am very very excited about the opportunity.”
A firm believer that India’s market is poised for massive growth, Son believes the country will grow over the next decade and become an attractive destination for international investors. “And it will become like China become worth hundreds of billions of dollars,” he said. Despite China’s position as a frontrunner on the development of the internet, Son advocates consolidation in the e-commerce space; “I am sure there will be lots of co-operation.”
SoftBank, Bharti, and Foxconn plan to invest in their joint venture called SBG Cleantech Ltd, with the aim of promoting the adoption of clean and safe energy in India. Given its vast population, high irradiation, growing energy demand and power deficit, limited access to fossil fuels and a large number of unlit villages, India has great potential to be a major solar market. India is targeting generation of 100GW of solar power by 2022, up from around 5GW today.