Atul Ltd has announced the acquisition of a 26.30% equity stake in Torrent Urja 39 Pvt Ltd (TUPL) for ₹13.86 crores. This strategic move is aimed at meeting regulatory requirements for captive hybrid power usage in Gujarat.

Transaction Structure and Financial Details

The acquisition is structured as a cash consideration transaction, with the following key parameters:

Strategic Rationale and Business Objectives

The primary objective of this acquisition is to comply with regulatory requirements under electricity laws to become a captive user of hybrid wind-solar power plants. TUPL is establishing these renewable energy facilities in Gujarat, which will allow Atul Ltd to access sustainable power solutions for its operations.

Target Company Profile

Torrent Urja 39 Pvt Ltd is a specialized entity in the renewable energy sector:

Regulatory and Compliance Aspects

The transaction has been structured to ensure compliance with applicable regulations. It does not fall within the scope of related party transactions, and the promoter or promoter group companies of Atul Ltd have no interest in TUPL. No specific governmental or regulatory approvals are required for completing this acquisition.

Market Implications

This acquisition represents Atul Ltd's strategic expansion into renewable energy infrastructure, specifically targeting hybrid wind-solar power generation capabilities. The investment enables the company to secure captive power usage rights, potentially providing long-term operational benefits through sustainable energy access. The transaction structure, with its phased approach over 14 to 16 months, allows for systematic integration and compliance with regulatory frameworks governing captive power users in Gujarat's renewable energy sector.

Atul Limited , a prominent player in the chemical industry, has announced the appointment of Mr. Shantanu Khosla as an Independent Director for a five-year term. The appointment was approved by shareholders through a postal ballot voting process, with the special resolution passed by the requisite majority via remote e-voting.

Shareholder Approval

The company's shareholders have given their consent to Mr. Khosla's appointment for five consecutive years. This approval solidifies his position on the board and demonstrates shareholder confidence in his potential contributions to the company.

Extensive Industry Experience

Mr. Khosla brings a wealth of experience to Atul Limited's board, with a career spanning four decades in the Fast-Moving Consumer Goods (FMCG) industry. His professional journey includes:

• Senior positions with Procter & Gamble across multiple countries
• 15 years as the Head of Procter & Gamble India
• Managing Director of Crompton Greaves Consumer Electricals Ltd from 2015 to 2024
• Current roles as Non-executive Vice Chairman of Crompton Greaves Consumer Electricals Ltd and Operating Partner at Advent, a private equity firm

Educational Background

Mr. Khosla's academic credentials include:

• B.Tech degree from the Indian Institute of Technology (IIT), Mumbai
• Management diploma from the Indian Institute of Management (IIM), Kolkata

Board Independence

The company has confirmed that Mr. Khosla holds no relationships with other directors on Atul's board and does not own any shares in the company, underlining his independence in the role.

Corporate Governance

This appointment aligns with Atul Limited's commitment to strong corporate governance practices. The company has followed the necessary regulatory procedures, including:

• Recommendation by the Nomination and Remuneration Committee
• Approval by the Board of Directors
• Disclosure to stock exchanges as per SEBI regulations
• Shareholder approval through postal ballot

The appointment of Mr. Khosla, with his extensive experience in consumer goods and leadership roles, is expected to bring valuable insights to Atul Limited as it navigates future growth and market challenges in the chemical industry.