Vardhman Textiles Completes ₹50.52 Cr Solar Investment in Punjab

Vardhman Textiles has completed its investment of ₹50.52 crore in Sone Solar Energy One Private Limited for a 30 MW solar facility in Punjab. The company has subscribed to equity shares and convertible debentures as part of this investment.

Investment Execution Details

The company's investment in Sone Solar Energy One involves the following components:

Investment Component	Details
Total Investment	₹50.52 crore
Equity Shares	23,161 shares at ₹10 face value
Convertible Debentures	50,28,961 CCDs at ₹10 face value
Stake Acquired	19.50% in equity securities

Solar Project Specifications

The investment supports the establishment of a renewable energy infrastructure in Punjab:

Project Parameter	Specification
Facility Type	Ground-mounted solar photovoltaic
Total Capacity	30 MW AC (42 MW peak)
Location	Punjab
Operational Basis	Group captive

Strategic Partnership Framework

The investment builds upon a Share Subscription and Shareholders Agreement executed with ASG HOLDCO BETA PTE. LIMITED as the developer. This partnership structure enables Vardhman Textiles to secure long-term renewable energy access while participating in the solar project's development and operations.

The group captive model allows the company to utilize the generated solar power for its textile manufacturing operations, potentially reducing energy costs and enhancing sustainability credentials. A Power Purchase Agreement has been executed with Sone Solar Energy One, providing a framework for energy procurement from the solar facility.

Regulatory Compliance

The investment completion was communicated to the relevant stock exchanges under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. This regulatory filing demonstrates the company's commitment to transparent disclosure of material investments and strategic initiatives.

The textile manufacturer's entry into renewable energy through this investment reflects the industry's broader shift toward sustainable operations and energy security.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.58%	+1.39%	-1.77%	-0.60%	-16.67%	+128.71%

Vardhman Textiles Limited , a prominent player in the textile industry, has made a strategic move into the renewable energy sector by acquiring a 19.5% stake in Sone Solar Energy One Private Limited. This acquisition, valued at Rs 9.13 crore, is part of a larger initiative to secure captive power for the company's operations.

Key Details of the Acquisition

Stake Acquired: 19.5% in Sone Solar Energy One Private Limited
Investment Amount: Rs 9.13 crore
Solar Project Capacity: 30 MWac (42 MWp) ground-mounted solar photovoltaic power generation facility
Location: Punjab

Power Purchase Agreement

Alongside the stake acquisition, Vardhman Textiles has entered into a power purchase agreement (PPA) with Sone Solar Energy One Private Limited. The solar facility is designed to operate as a group captive power plant, with the following power allocation:

Beneficiary	Power Allocation
Vardhman Textiles Limited	22.5 MWac
Other Eligible Captive Users	7.5 MWac

Strategic Implications

This move by Vardhman Textiles aligns with the growing trend of industrial companies investing in renewable energy sources to meet their power needs. The investment serves multiple purposes:

Regulatory Compliance: The acquisition helps Vardhman Textiles comply with regulatory requirements for captive power consumption under Indian electricity laws.
Cost Management: By securing a stake in a solar power project, the company can potentially reduce its long-term energy costs.
Sustainability Initiative: This investment demonstrates Vardhman's commitment to sustainable practices and reducing its carbon footprint.

Financial Context

To put this investment in perspective, let's look at some key financial metrics from Vardhman Textiles' recent balance sheet:

Metric	Value (Rs Crore)	YoY Change
Total Assets	11,899.80	+3.60%
Investments	1,476.40	+8.38%
Shareholders' Capital	9,577.80	+8.78%

The Rs 9.13 crore investment in Sone Solar Energy One Private Limited represents a relatively small portion of Vardhman Textiles' total investments, which stood at Rs 1,476.40 crore. This suggests that while the company is diversifying into renewable energy, it's doing so in a measured manner that doesn't significantly impact its overall financial position.

Conclusion

Vardhman Textiles' investment in Sone Solar Energy One Private Limited marks a significant step towards securing sustainable and cost-effective power for its operations. As the textile industry faces increasing pressure to adopt environmentally friendly practices, this move positions Vardhman Textiles as a forward-thinking player in the market. The company's ability to make such investments while maintaining a strong financial position, as evidenced by its growing asset base and shareholder capital, indicates a balanced approach to growth and sustainability.

Investors and industry observers will likely watch closely to see how this investment impacts Vardhman Textiles' operational costs and environmental footprint in the coming years.