Ahmedabad (Gujarat) [India], April 18: Nandan Denim Limited (NDL), a leading textile manufacturer, has announced its strategic entry into renewable energy sourcing through the acquisition of an equity stake in a special purpose vehicle (SPV). The company's Board of Directors has approved the execution of a Share Transfer cum Shareholders' Agreement with Opera Vayu (Narmada) Private Limited and Shivman Wind Energy Private Limited.
As part of the agreement, Nandan Denim will acquire a 6.1% equity stake in the SPV for a total consideration of ₹4.00 crore. The investment is aligned with the company's objective to reduce power costs and enhance sustainability by increasing its reliance on renewable energy.
The SPV is engaged in the generation of wind and solar power under the group captive model. Through this arrangement, Nandan Denim will procure approximately 4.3 MW of power from a combined renewable energy capacity comprising wind and solar assets. The long-term agreement ensures access to competitively priced green energy for a period of 25 years, supporting operational efficiency at the company's Bareja plant.
Additionally, the company will provide an irrevocable bank guarantee of ₹1.90 crore to secure short-term billing obligations. The transaction is expected to be completed by June 30, 2026.
This move marks a significant step in Nandan Denim's sustainability journey, reinforcing its commitment to cost optimization and environmentally responsible manufacturing practices while ensuring long-term energy security.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
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