Prataap Snacks Limited, a leading Indian snack food company, has taken a significant step towards diversifying its operations and enhancing sustainability. The company has amended its Memorandum of Association (MOA) and Articles of Association (AOA) to include provisions for renewable energy and captive power generation.

Strategic Expansion into Renewable Energy

The company's shareholders approved the amendments at the 16th Annual General Meeting held on August 6. This move allows Prataap Snacks to engage in generating, producing, and distributing power from various renewable and conventional energy sources, including solar, wind, hydel, and biomass.

Key Changes in Corporate Documents

The amended MOA now includes a new sub-clause that enables the company to:

• Generate power from renewable and conventional energy sources
• Establish and operate power plants and related infrastructure
• Conduct research and development in energy efficiency and conservation

These changes are primarily aimed at facilitating captive consumption for the company's operations, potentially reducing energy costs and enhancing operational efficiency.

Alignment with Regulatory Requirements

The amendments are in compliance with the Electricity Act, 2003, and guidelines issued by the Government of Madhya Pradesh. The company's AOA has also been updated to include definitions related to power purchase agreements and projects, ensuring alignment with regulatory frameworks governing captive power generation.

Modernization of Corporate Structure

In addition to the energy-related changes, Prataap Snacks has adopted a new set of MOA in line with the Companies Act, 2013, replacing the previous version based on the Companies Act, 1956.

Shareholder Approval and Voting Results

The amendments received overwhelming support from shareholders. Key resolutions, including the alteration of the MOA and AOA, were passed with over 99% of votes in favor. This strong backing indicates shareholder confidence in the company's strategic direction.

Implications for Future Growth

By expanding into renewable energy and enabling captive power generation, Prataap Snacks is positioning itself for potential cost savings and improved sustainability in its operations. This move could contribute to the company's long-term competitiveness in the snack food industry while also aligning with global trends towards cleaner energy adoption in the corporate sector.

The company's decision to diversify into energy production, while maintaining its core focus on snack foods, represents a forward-thinking approach to business sustainability and operational efficiency. As Prataap Snacks implements these changes, stakeholders will be watching closely to see how this strategic shift impacts the company's performance and environmental footprint in the coming years.

Prataap Snacks Limited, a leading Indian snack food company, has taken a significant step towards sustainable energy practices and corporate governance improvements. At the company's 16th Annual General Meeting (AGM), shareholders approved crucial amendments to both the Memorandum of Association (MOA) and Articles of Association (AOA).

Enabling Captive Power Generation

The primary focus of these amendments is to enable Prataap Snacks to generate, produce, and distribute electricity from renewable and conventional energy sources, primarily for captive consumption. This move aligns with the company's commitment to sustainable practices and energy efficiency.

Key aspects of the amendments include:

1. Addition of new provisions in the MOA for establishing power plants, substations, and transmission systems using various energy sources such as solar, wind, hydel, and biomass.
2. Insertion of new clauses in the AOA defining Power Purchase Agreements and project structures for electricity supply to captive users or third-party power sales.

These changes were mandated under the Electricity Act, 2003, and guidelines from the Government of Madhya Pradesh for captive power generation.

Alignment with Companies Act, 2013

In addition to the energy-related amendments, Prataap Snacks has updated its MOA to align with the Companies Act, 2013, replacing provisions from the earlier Companies Act, 1956. This update ensures that the company's foundational documents are in line with current corporate law requirements.

Shareholder Approval and Voting Results

The AGM saw strong shareholder participation, with all eleven resolutions passing with overwhelming majority. Key voting results include:

Management Commentary

Mr. Sanjay Chourey, Company Secretary and Compliance Officer of Prataap Snacks Limited, stated, "These amendments are a significant step towards our commitment to sustainable energy practices and improved corporate governance. The changes will enable us to explore captive power generation, potentially reducing our energy costs and environmental footprint."

Looking Ahead

With these amendments in place, Prataap Snacks is now positioned to pursue captive power generation projects, which could lead to more sustainable operations and potential cost savings in the long term. The company's proactive approach to aligning its governance structures with current regulations also demonstrates its commitment to maintaining high standards of corporate governance.

As Prataap Snacks moves forward with these new capabilities, investors and stakeholders will be keen to see how the company leverages these changes to enhance its operational efficiency and sustainability practices in the coming years.