Automotive components manufacturer CIE Automotive will procure power from ReNew Green‘s 7.8 MW captive solar power project.

The company invested ₹36.03 million (~$428,460) in cash to purchase ReNew Green’s 924,000 shares, each with a face value of ₹10 (~$0.12) and a premium of ₹29 (~$0.34). This transaction has established ReNew Green as an associate company of CIE Automotive.

Once operational, the solar power project will provide power exclusively to CIE Automotive’s manufacturing facilities in Maharashtra, supporting the company’s strategy to reduce power expenses at its plants within the state.

Established in 2021, ReNew Green specializes in developing and operating renewable energy projects. CIE Automotive India manufactures and supplies automotive components to original equipment manufacturers and other customers domestically and internationally.

The acquisition is not a related-party transaction, and no promoters or affiliated companies of CIE Automotive hold any interests in ReNew Green.

CIE Automotive had previously acquired a 26% stake in Strongsun Solar at a cost of ₹33.5 million (~$418,907) to procure power from two captive solar power projects in Maharashtra.

In its annual report 2023, the company noted that its investments in associate companies like Strongsun, Clean Max Deneb Power, and Sunbarn Renewables were made to optimize power costs while increasing the share of green energy in total energy consumption across CIE’s operations. A pooling sub-station and testing labs for renewable energy initiatives were also installed at its facility to support these projects, ensuring compliance and maximizing efficiency in renewable energy utilization.

The aggregate capacity of captive power plants, including wind energy, stood at 93 MW for FY 2023. The company has installed rooftop solar panels with a capacity of 6.4 MW. It generated 145.80 million units in green energy from the group’s captive and rooftop solar power projects. In 2023, the overall proportion of renewable energy consumption to total energy consumption stood at 56.94%.

In a similar transaction recently, Kolkata-based Ramkrishna Forgings approved an equity and debenture investment of ₹129 million (~$15.34 million) in a special purpose vehicle of AMPIN Energy Transition to procure solar power under a captive arrangement.