Simplex Castings Limited has entered into a 25-year Power Purchase Agreement (PPA) with M/s Natraj Energy to supply renewable electricity to its manufacturing facilities in Bhilai and Tedesara. The agreement covers a 5.5 MWp grid-connected solar power plant under the Long-Term Open Access (LTOA) mechanism in Chhattisgarh. This strategic move is expected to deliver annual energy cost savings of approximately ₹2.16 Crores, significantly improving the company's cost structure over the agreement's tenure.

Prior to this arrangement, the company sourced power at ₹9 per unit from the conventional grid. Under the new solar power agreement, Simplex Castings anticipates a saving of close to ₹3 per unit, effectively reducing its net energy cost to ₹5-6 per unit for the same consumption pattern. The arrangement is structured on a cash-neutral basis, allowing the company to participate in the project economics without material upfront capital outlay.

Natraj Energy will assume full responsibility for project development, statutory and regulatory approvals, grid connectivity, and operations and maintenance of the solar facility throughout the 25-year term. The agreement includes robust performance and payment security mechanisms to ensure reliable energy supply.

Financial Impact

The transition to solar power is projected to yield substantial financial benefits for the company. The table below outlines the cost comparison and projected savings:

Ketan Shah, Chairman and Executive Director, stated that the long-term solar power arrangement marks a significant step in the company's sustainability journey. He emphasized that securing clean energy at a predictable tariff over a 25-year horizon strengthens the commitment to responsible manufacturing while meaningfully improving the energy cost structure. Shah noted that the annual savings of approximately ₹2 Crores reflect the tangible financial value of this initiative, which adds to margins alongside environmental benefits.

Independent Director Shailesh Jain resigned from simplex casting effective June 5, 2026, citing other professional obligations. The resignation was tendered via a letter dated June 5, 2026, and took effect at the close of business hours on the same day. Consequently, Jain has ceased to be a member of the Audit Committee, Nomination & Remuneration Committee, and Stakeholder Relationship Committee of the company.

The Board of Directors recorded its appreciation for the contributions and guidance provided by Jain during his tenure. The company confirmed that there are no material reasons for the resignation other than the professional obligations stated in the letter. The disclosure was made in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The following table details the particulars of the change in directorship:

Prior to his resignation, Jain served as a Non-Executive Independent Director. He was a member of the Audit Committee, Nomination and Remuneration Committee, and Stakeholder Relationship Committee. The company has uploaded the intimation and the resignation letter on its website.