Automotive component company Varroc Engineering (Varroc) will procure solar power from AMPIN‘s 27 MW group captive project in Maharashtra.

The two companies signed a transaction document for the power procurement.

AMPIN has set up multiple solar projects in Maharashtra, Karnataka, Uttar Pradesh, and Tamil Nadu.

With the latest power purchase agreement, Varroc’s total contracted solar capacity with AMPIN reached more than 60 MW. This will enable Varroc to meet approximately 70% of its energy requirements with renewable energy.

This shift to renewable energy sources is projected to result in substantial cost savings, with an estimated 45% reduction in energy costs across Varroc’s manufacturing plants in Maharashtra.

According to its 2023-24 annual report, nearly 50% of Varroc’s facilities have rooftop solar installations. In the financial year 2024, the company generated 22.08 MW of renewable energy. The company has three wind projects and one solar project.

The company’s renewable captive energy generation expanded to 21,699,947 kWh in FY 2023-24.

Further, the solar project installed by the company at Shivaji Nagar, Dhule, Maharashtra, generated 57,09,506 units of electricity, amounting to ₹38.68 million (~$459,932).

Varroc said the first phase of its renewable energy initiative will help it save more than ₹200 million (~$2.37 million) annually.

In FY 2021-22, Varroc’s electricity consumption from rooftop solar systems was 7,510,574 kWh, and 11,463,744 kWh from wind energy. By FY 2022-23, rooftop solar generation increased to 9,276,336 kWh and wind generation to 12,021,076 kWh.

This upward trend continued with Varroc’s electricity consumption from captive renewable sources expanding to 21,699,947 kWh in FY 2023-24.

Recently, Bengaluru-based pharmaceutical company Strides Pharma Science announced an investment of ₹16.1 million (~$191,495) to acquire a 2.48% stake in AMPIN Energy C&I One on a fully diluted basis to set up captive solar power projects in Tamil Nadu.

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 in a captive arrangement.