Engineering company Carborundum Universal (CUMI) has invested ₹80 million (~$954,426) for a 4.19% stake in New Delhi-based Grian Energy (GEPL) which is setting up a renewable energy project.

The investment will allow Carborundum to access the contracted capacity of around 10 MW in GEPL’s captive power project, for which it has entered into a power purchase agreement.

GEPL has proposed developing and operating a captive power project to supply electricity—solar and wind—which will be used to meet Carborundum’s power requirements.

The acquisition is expected to be completed by March 2025.

The company entered into a share subscription and shareholders’ agreement with GEPL and its parent company Amplus Energy Solutions, to acquire the shares.

Carborundum, a Murugappa Group company, manufactures and develops abrasives, ceramics, refractories, aluminum oxide grains, machine tools, polymers, adhesives, and electro minerals.

The investment is aligned with the sustainability goals of Carborundum, which operates power-intensive facilities in its manufacturing process. This equity acquisition will aid the company in sourcing clean energy and reducing its carbon footprint.

In its annual report 2023, the company said it has commissioned about 1.5 MW of solar systems across its units. It also initiated a new project for generating green energy by tying up with a solar power producer to install and commission a 1.8 MVA project at its campus in Edappally.

Several companies in the commercial and industrial (C&I) segment across India are increasingly turning to captive, open access, and rooftop solar solutions for their energy needs because of savings on power costs. Adopting renewable energy will also help them meet their net-zero goals.

At the Mercom Indian Renewables Summit 2024 in July, industry experts shared their insights on the current state of the market, challenges, and prospects for corporate renewable energy adoption.

Mercom India is also hosting a series of C&I Clean Energy Meets in several cities. These events provide a platform for clean energy developers and representatives of C&I units and banks to discuss power requirements, cost benefits, challenges, opportunities, and solutions.

The next event in the series will be held in Pune on September 20, 2024.