Vardhman Textiles Limited has approved and executed agreements to acquire a minimum 26% equity stake in Serentica Renewables India 32 Private Limited, a special purpose vehicle formed to develop and operate renewable energy projects. The investment is aimed at supporting the company’s captive renewable power requirements under applicable Indian electricity regulations.
The power project entity has a total capital of ₹160.96 crore. Vardhman Textiles will contribute ₹41.85 crore in cash through three tranches linked to the achievement of specified project development milestones. Serentica Renewables India Private Limited will hold the remaining stake of up to 74% and contribute ₹119.11 crore.
The proposed renewable energy portfolio will comprise a 40 MW wind power project in Karnataka and a 40 MWp/30 MW solar power project in Rajasthan. Both projects are planned to be connected to the central grid substation. Together, the wind and solar assets are expected to form a hybrid renewable power infrastructure.
The projects are intended to supply 27 MW of contracted renewable power to Vardhman Textiles’ manufacturing facilities in Himachal Pradesh. The arrangement is designed to support captive power consumption and increase the company’s access to renewable electricity for its operations.
The power-producing entity has not yet commenced commercial operations. Under the investment arrangement, Vardhman Textiles will have voting rights in proportion to its shareholding and will receive rights in relation to specified reserved matters. However, the textile company will not appoint any representative to the board of directors of Serentica Renewables India 32.
The transaction does not involve any related-party interests or conflicts of interest, according to the company. It also does not require any additional governmental or regulatory approvals for completion.
The investment marks Vardhman Textiles’ continued move toward securing renewable power for its manufacturing operations while supporting its captive consumption requirements. The planned wind-solar hybrid projects will combine generation from two renewable sources and are expected to provide contracted clean power to the company once the projects become operational.
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