Sterling and Wilson, part of Shapoorji Pallonji Group and one of India’s major solar EPC companies with over 1,000 MW of solar projects on ground, has acquired 51% stake in STC Group, an Italian gas-based power generation business, to expand its power plant portfolio in key markets.
At present, S&W has a presence in the diesel and solar power sector and this acquisition will enable it to establish a strong foothold in the gas power plant segment globally where STC Power has domain knowledge and capability of executing gas based power generation projects including gas based combined cycle power generation projects upto 200 MW capacity, the company said in a statement.
Sterling and Wilson has bought 51% stake in STC Power and 55% stake in Co.Stell, two operating companies of STC Group. STC Power is an EPC contractor of medium sized power plants between 1MW and 200 MW.
Elaborating the strategy behind the acquisition, Khurshed Daruvala, MD, Sterling and Wilson stated, “STC acquisition will allow S&W to make our first forays into Europe. More importantly, the financial strength and geographical reach of S&W combined with the strong heritage of STC will enable us to provide total turnkey EPC solutions to our customers in Europe, Middle East, Africa and India – it lays the platform for this association to make Sterling and Wilson a significant global player in the gas based power plant business. The other opportunity for the group would be to use the expertise of STC to cater to the huge demand in India for converting waste to energy.”
STC got into the Gas based power Gen business as an Italian partner of Turbomach SA Switzerland. It gained more than two third market share in the sub-15 MW Gas Turbine Co-Gen business in Italy. STC then diversified its portfolio vertically by getting into large Gas Turbine based cogeneration, combined cycle power plants and also Bio mass based power plants in 2001.
In the past more than 30 years, STC has installed about 1,800 MW of Gas and biomass based power plants with presence and successful references in Italy, Poland and Israel. The largest size of power plant done by STC is a 140 MW combined cycle power plant.