DCM Shriram Limited Enters Agreement with Serentica Renewables for 58 MW Power Project
DCM Shriram Limited has entered into a definitive agreement with Serentica Renewables India 38 Private Limited to develop a 58 MW peak hybrid renewable energy power project. The initiative is primarily aimed at supporting the company's energy-intensive operations in Bharuch, Gujarat.Upon the completion of this project, DCM Shriram’s total renewable energy capacity will reach 176 MW (peak) across its facilities in Bharuch and Kota. The project is scheduled for commissioning by June 30, 2027.
Investment and Ownership Structure
The company will invest up to Rs. 105 crore in one or more tranches to acquire a minimum 26% equity stake in Serentica Renewables India 38 Private Limited. The transaction will be executed as a cash consideration. This investment allows DCM Shriram to maintain control over the target entity, which is involved in power generation, transmission, and distribution using non-conventional methods.| Particulars | Details |
|---|---|
| Target Entity | Serentica Renewables India 38 Private Limited |
| Industry | Renewable Energy |
| Purpose of Acquisition | To secure ~58 MW of Renewable Power (~36 MW round the clock) |
| Consideration Amount | Rs. 104.4 crore (in one or more tranches) |
| Ownership Stake | 26% of Voting Rights/Control |
| Completion Timeline | June 30, 2027 |
Strategic Impact on Operations
The agreement is a strategic move to expand the share of renewable energy within the company's chemical operations. According to Mr. Sabaleel Nandy, Executive Director and CEO of DCM Shriram Chemicals, the project is expected to help avoid approximately 0.4 million tonnes of CO2 emissions annually. Additionally, the shift to renewable power is intended to improve cost efficiency and provide long-term visibility into power costs by reducing exposure to fluctuations in conventional energy prices.Mr. Akshay Hiranandani, CEO of Serentica Renewables, stated that the partnership will facilitate a 190 MW renewable energy project involving solar power from Rajasthan and wind power from Karnataka. This setup will supply the 58 MW of renewable power to the Bharuch plant, providing reliable and sustainable energy for its industrial operations.
The initiative strengthens the company's renewable energy portfolio while supporting long-term requirements for manufacturing sites in Bharuch. The project aims to enhance energy efficiency, reduce emissions, and build a more resilient and sustainable manufacturing base.
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