HeidelbergCement India Limited has signed a long-term power purchase agreement to purchase around 22 Gigawatt hours per annum solar energy under captive arrangement for its facility located in Jhansi, Uttar Pradesh.
The cement maker has entered into power purchase agreement, share subscription agreement and shareholders agreement with Lalganj Power (LPPL) on 10 August 2021 for subscribing to 3,636,364 equity shares of Rs 10 each, or 4.2% equity of LLPL at a premium of Rs 3.2 per share aggregating to Rs 4.80 crore in order to procure around 22 Gigawatt hours per annum of solar power under captive arrangement for operating its plant located at Village Madora, District Jhansi, Uttar Pradesh, India.This will meet ~25% of the annual electricity demand of HeidelbergCement India's Jhansi plant. The electricity will be economical compared to existing sources and will partially replace electricity purchased under short term open access and from grid.
The electricity supply is likely to start from quarter ending December 2021 and will meet c. 25% of the annual electricity demand of the company's Jhansi plant. The electricity supply will be economical compared to existing sources and will partially replace electricity purchased under short term open access and from grid.
The expected CO2 savings by sourcing solar energy would be c. 400,000 tonnes over the life of the contract and is another milestone in reducing CO2 footprint.
Jamshed N Cooper, managing director, said: "HeidelbergCement India reaffirms its commitment to reduce carbon emissions and spearhead in its sustainability initiatives."
HeidelbergCement India is is a subsidiary of HeidelbergCement Group, Germany. The company has its operations in Central India at Damoh (Madhya Pradesh), Jhansi (Uttar Pradesh) and in Southern India at Ammasandra (Karnataka). The company increased its capacity to 5.4 million tones p.a. through brown field expansion of its facilities in Central India in 2013. The new manufacturing capacity has enabled the company to increase its market share in Central India i.e. Madhya Pradesh and Uttar Pradesh and in markets of Bihar, Haryana and Uttarakhand.
The company's net profit rose 40.27% to Rs 68.65 crore on a 35.47% increase in net sales to Rs 550.38 in Q1 FY22 over Q1 FY21.
The scrip rose 0.90% to currently trade at Rs 262.85 on the BSE. On a year-to-date (YTD) basis, the stock has added 15.66% while the benchmark Sensex has gained 14.49% during the same period.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
