Indian lead-acid battery manufacturer, Exide Industries (Exide), has entered into three share subscription and shareholders agreements with renewable energy developer Cleantech Solar (Cleantech) to install captive solar projects at its factories.

In a filing to the Bombay Stock Exchange, Exide stated that it “agreed to subscribe equity shares comprising at least 26% but not exceeding 30% of the issued and paid up share capital of each of the three special purpose vehicle (SPV) companies”.

Following are the three SPVs:

• CSE Solar Sunpark Tamil Nadu Private Limited
• Greenyana Solar Private Limited
• CSE Solar Sunpark Maharashtra Private Limited

These SPVs would develop the projects at Exide’s factories located in Maharashtra, Tamil Nadu, and Haryana. Exide has also announced that it will procure energy from these solar power projects for its Hosur factory in Tamil Nadu, Bawal factory in Haryana and three factories in Maharashtra.

In January 2019, Mercom reported that Exide was going to acquire 30 percent equity stake in three SPVs which would develop projects costing approximately ₹200.5 million (~$ 2.86 million), with Exide as the captive user and the three SPVs as the power producers.

Exide formed a joint venture with Leclanche in June 2018 to manufacture lithium-ion batteries and provide energy storage systems for India’s electric vehicle market and grid-based applications.

Singapore-based Cleantech Solar which focuses on financing, constructing, owning and operating solar rooftops projects is expected to be the developer of the captive plants. In a similar deal in November 2018, Prism Johnson Limited (formerly Prism Cement) entered into a deal with Cleantech to acquire up to 30% equity stake in a special purpose vehicle which would be incorporated for setting up captive solar power projects of 22 MW capacity. The 30 percent equity stake was said to have an approximate value of ₹100 million (~$ 1.39 million).

Last year, Cleantech announced that Shell Eastern Petroleum Ltd (Shell) would acquire a 49 percent interest in the company.