DCM Shriram Limited Signs Agreement with Serentica Renewables for 58 MW Renewable 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 intended to support the company's energy-intensive operations at its Bharuch facility in Gujarat.Upon completion of this project, DCM Shriram’s total renewable energy capacity will reach 176 MW (peak) across its combined sites in Bharuch and Kota. The project is expected to be commissioned by June 2027.
Investment and Ownership Details
Under the terms of the agreement, DCM Shriram Limited 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 is structured as a cash consideration for the acquisition of voting rights and control over the target entity.The details of the transaction are summarized below:
| Particulars | Details |
|---|---|
| Target Entity | Serentica Renewables India 38 Private Limited |
| Industry | Renewable Energy |
| Investment Amount | Rs. 104.4 crore (Cost of acquisition) |
| Stake Acquired | 26% of Voting Rights/Control |
| Completion Timeline | June 30, 2027 |
| Power Capacity | ~ 58 MW (with ~ 36 MW round the clock) |
Strategic and Operational Impact
The agreement serves as a strategic step to expand renewable energy across DCM Shriram Chemicals' operations in Bharuch. According to Mr. Sabaleel Nandy, Executive Director & CEO of DCM Shriram Chemicals, the project is expected to help avoid approximately 0.4 million tonnes of CO2 emissions annually. Additionally, the move is intended to improve cost efficiency and provide greater visibility into long-term power costs by reducing exposure to fluctuations in conventional energy prices.Mr. Akshay Hiranandani, CEO of Serentica Renewables, stated that the partnership marks a significant step in India's industrial decarbonization. The 190 MW renewable energy project, which includes solar power from Rajasthan and wind power from Karnataka, will supply the 58 MW required for the Bharuch plant.
The move strengthens the renewable energy portfolio of DCM Shriram Chemicals while supporting long-term energy requirements. The project aims to improve energy efficiency, reduce emissions, and build a more resilient manufacturing base.
DCMSHRIRAM Stock Price Movement
DCM Shriram Limited shares edged higher today to settle at ₹1022.9, gaining 0.29%. The stock moved within a daily range of ₹1009.5 to ₹1029.2 on a volume of 33,800 shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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