SWELECT Energy Systems Proposes Leadership Changes and Major Related Party Transaction

SWELECT Energy Systems Limited , a prominent player in the electric power generation and distribution sector, has announced significant leadership changes and a major related party transaction through a postal ballot notice. The company is seeking shareholder approval for five key resolutions that could reshape its top management and operational structure.

Leadership Restructuring

The company has proposed several changes to its leadership team:

R Chellappan: Current Managing Director to be redesignated as Whole-time Director and Vice-Chairman for a 5-year term. His proposed annual remuneration includes a salary of Rs 20.10 lakhs plus a 0.25% commission on net profits.
Dr. Arulkumar Pudur Shanmugasundaram: To be appointed as Chief Executive Officer and Managing Director for 5 years with an annual remuneration of Rs 3.50 crores.
A Balan: Current Joint Managing Director to be redesignated as Whole-time Director for 5 years. His proposed annual remuneration includes a salary of Rs 39.60 lakhs plus a 0.25% commission on net profits, capped at Rs 10 lakhs.
Gnanasekar Sukumar Samuel: To be appointed as Non-Executive, Non-Independent Director.

Material Related Party Transaction

SWELECT is also seeking approval for material related party transactions worth up to Rs 350.00 crores with its subsidiary, ESG Green Energy Private Limited. These transactions, planned for 2025-2027, include:

Sale of solar panels
Loans
Investments
Guarantees
Management fees

Voting Details

The company has scheduled remote e-voting from October 17 to November 15, 2025, allowing shareholders to cast their votes on these significant proposals.

Company Background

SWELECT Energy Systems Limited, incorporated in 1994, has been a key player in the electric power generation, transmission, and distribution sector. The company has shown consistent financial performance, with a total income of Rs 48,277.13 lakhs and a profit after tax of Rs 857.66 lakhs for the financial year 2024-2025.

These proposed changes reflect SWELECT's strategic moves to strengthen its leadership and expand its operations in the renewable energy sector, particularly in solar power generation and distribution.

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SWELECT Energy Systems Limited has announced a significant expansion of its renewable energy portfolio with the successful commissioning of a new 2 MW solar power plant. This development marks a notable step in the company's commitment to green energy solutions.

Project Details

The new solar power facility, operated by SWELECT Green Energy Solutions Private Limited, a wholly-owned subsidiary of SWELECT Energy Systems, is located in Kambiliampatti Village, Dindigul East Taluk, Dindigul District, Tamil Nadu. The plant is designed to sell solar power to third-party users through the Intra State Open Access System, highlighting the company's focus on expanding its presence in the renewable energy market.

Capacity Expansion

With the addition of this 2 MW plant, SWELECT Green Energy Solutions Private Limited has significantly boosted its power generation capacity. The subsidiary now boasts a total capacity of 14 MW, underscoring the company's growing footprint in the solar energy sector.

Strategic Growth

This latest commissioning aligns with SWELECT Energy Systems' strategy to strengthen its position in the renewable energy industry. By increasing its solar power generation capabilities, the company is well-positioned to meet the rising demand for clean energy solutions and contribute to India's sustainable energy goals.

Market Impact

The expansion of SWELECT's solar capacity is likely to be viewed positively by investors and industry observers. It demonstrates the company's ability to execute projects efficiently and its commitment to capitalizing on the growing opportunities in the renewable energy sector.

Conclusion

SWELECT Energy Systems' commissioning of the new 2 MW solar power plant represents a significant milestone in the company's growth trajectory. As the demand for renewable energy continues to rise, SWELECT's expanded capacity positions it well to play a crucial role in India's transition towards cleaner energy sources.