UltraTech Cement Increases Stake in Continuum MP Windfarm

UltraTech Cement, a flagship company of the Aditya Birla Group, involved in the manufacturing and selling of cement and related products here in India, has announced an increase in its shareholding in Continuum MP Windfarm Development Private Limited, a renewable energy company. The cement giant will raise its stake from 3.28% to 5.46% by investing Rs.243.5 million (~$2.9 million).

Bigger Share, More Power

UltraTech is also increasing its procurement of wind-solar hybrid power from Continuum MP Windfarm. The cement company will now receive an additional 7 MW, taking its total procurement from 14 MW to 21 MW. Continuum MP Windfarm operates a 100 MW wind-solar hybrid project in Ratlam, Madhya Pradesh, under the group captive mode. The hybrid setup ensures more stable energy output by combining both wind and solar resources, helping UltraTech meet its energy demands more sustainably.

Background & Timeline

The acquisition process is expected to be completed within 120 days, pending amendments to the Power Purchase Agreement, Share Purchase Agreement, and Shareholders Agreement. Continuum MP Windfarm, established in 2015, operates a 100 MW wind-solar hybrid project in Ratlam, Madhya Pradesh. In FY24, the company recorded a turnover of Rs.246.41 million (~$2.92 million).

Legal Precedence

In 2022, UltraTech Cement subsidiaries won a legal victory when the Appellate Tribunal for Electricity dismissed a ruling by the Madhya Pradesh Electricity Regulatory Commission. The ruling had upheld a state-owned distribution company’s decision to levy an additional surcharge on captive power generation. UltraTech Cement argued that its subsidiaries were not using the distribution licensee’s transmission system.

Conclusion: With this stake increase, UltraTech is not only securing more green energy for its operations but also reinforcing its plans towards sustainability. As renewable energy becomes a more significant part of its power mix, the company is setting a foundation for growth while optimizing costs.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.