Softbank to invest in the hot Solar Market in India

The Japanese Telecom giant Softbank Corp. will now invest $20 billion in the Indian Solar market. India is witnessing big solar commitments, since its target was upgraded to 100 GW by 2022. Softbank Corp. had made history since it invested in Alibaba, the Chinese e-commerce group. The $20 billion investment in 2000 is now worth $86 billion. Softbank had earlier said it would invest ~$10 billion in India over time. It has already bought stakes worth ~30% in India’s Snapdeal and Housing.com. Now Japan’s SoftBank Corp, together with Bharti Enterprises and Taiwan’s Foxconn, will invest about $20 billion in solar projects in India; where Softbank would be the majority stakeholder. This would be amongst the biggest solar commitments that India would witness. Softbank has plans to generate minimum 20 GW of energy. What is favorable for Softbank is that India has high solar radiation and lower costs, when compared to Japan.

“India can become probably the largest country for solar energy,” Son – Founder Softbank said.

Source: Reuters

Softbank has been investing in India’s e-commerce businesses too. In October last year, it invested more than $600 million in the Indian e-commerce retailer Snapdeal and more than $200 million in the online booking cab website Ola. It also has 36% stake in ScoopWhoop along with Bharti Enterprises. India’s e-commerce market is supposed to be amongst the biggest globally. With the rise of income levels in the India middle-class and the increasing usage of smartphones, the Indian e-commerce is booming right now.

India’s solar market is also hot right now and Softbank’s commitments in India prove that. India has suddenly become a solar hub, where bigger companies from abroad are showing interest. As I mentioned yesterday this is the start of “Achhe din” returning to our country. Not only will these investments improve the situation of power-deficiency, but also open the gates for more foreign investment and hence improve macro conditions in India. I remain highly positive of the Indian Solar market.