UltraTech Cement will acquire a 26 per cent equity stake in Solaris Horizon Energy Private Limited as part of its efforts to increase the use of renewable power and reduce energy costs.
The company will invest up to Rs 27.75 crore in cash for the stake. The transaction is expected to be completed within 180 days.
Solaris Horizon Energy is engaged in the generation and transmission of renewable energy through solar power and is a subsidiary of Waaree Forever Energies Private Limited.
The investment is linked to a 91 MWp DC/65 MW AC solar project located at Village Puran in Mungeli district, Chhattisgarh. The project will support UltraTech Cement’s green energy requirements and help the company optimise its power costs.
The acquisition will also enable UltraTech to meet regulatory requirements associated with captive power consumption. By taking an equity stake in the renewable energy company, UltraTech will participate in the project as a captive consumer while increasing the share of renewable electricity used across its operations.
The transaction adds to UltraTech Cement’s efforts to secure renewable power for its manufacturing operations through captive and group-captive structures. The company has not disclosed the expected annual power supply from the project or the proportion of its energy requirement that will be met through the investment.