Ram Charan Company, the Chennai-based chemicals-trader-turned-renewable energy specialist with focus on sustainable R&D, has bagged a USD 2.2 billion order from the Ghana-based Masri Company to supply waste to energy units that is expected to generate 300 MW of power in the African nation.
Last month, the New York-based impact fund TFCC International had entered into an agreement with Ram Charan to pick up 46 per cent stake for USD 4.14 billion, valuing it at around USD 9 billion. The deal was biggest in the domestic chemicals space and one of the biggest private equity deals across the industry in the country till date and it said the TFCC investment will go into developing new energy management systems and manufacture renewable energy devices with high storage capacity made from sodium silicate.
Ram Charan started off as a chemical distributor in 1965, and from 2016 it has moved into research on managing end-of-life chemicals, and since then has developed products that can process large quantities of unsegregated waste. Later, it moved from chemicals trading and distribution into compound and specialty chemical manufacturing, as also testing and research, according to its website.
It has presence across the country apart from in Britain, North America and Japan. The company is currently headed by third generation entrepreneurs Divyesh and Kaushik Palicha. Since 2016, Ram Charan has moved into deep-tech, end-of-life chemicals converting unsegregated waste into energy and manufacturing new-generation energy storage devices the primary reason for the American fund to go for such a high valuation and equity partnership.
“We’ve bagged a USD 2.2-billion order Masri Company from Ghana, which is working in the energy and mostly renewable energy space and this is their first foray into the waste to energy business,” Kaushik Palicha, a director and part of the promoter family of Ram Charan, said in a statement on Friday. The supply is expected to commence in November 2022, with setting up of units across Ghana over the next two years. The agreement and delivery of waste to energy products and services will be delivered under the brand name Entity One, he added.
“This is our first agreement to supply waste to energy units and this USD 2.2 billion order goes well with our overall mission of processing bulk waste to energy without leaving behind any residue,” Palicha said. “We are confident that our waste to energy products and new generation energy storage devices will help the environment of Ghana in a significant manner,” he added.
Ram Charan’s waste to energy technology allows for zero toxic residue, and can be used to convert all types of unsegregated of waste into energy, with zero residue to the environment, making it the first of its kind globally and also the safest. Ram Charan is implementing modern techniques considering a zero part per million production unit, and is also amongst the first globally to set up end product responsibility for their products.
The technology, developed in-house after research from 2016 by the current team at Ram Charan headed by Palicha, has been branded under the name ‘Entity One’, and has a slew of products lined up for release from 2022 till 2024. Manufacturing facilities are planned in Tamil Nadu and Gujarat. Ram Charan started off as a chemical distributor and has of late moved to research based on managing end of life chemicals. It began research on these projects in 2016, and since then has proceeded to develop products which can process large quantities of unsegregated waste.