Hyundai Motor inks pact to set up 2 plants in Tamil Nadu

Hyundai Motor India (HMIL) informed that it has taken a significant step towards achieving its RE100 target by setting up 2 renewable energy plants in Tamil Nadu.

HMIL signed a power purchase and shareholder agreement with Fourth Partner Energy (FPEL). This strategic partnership aims to enhance HMILs renewable energy portfolio and transition to 100% renewable electricity across its manufacturing operations by 2025.

As of June 2024, the auto major fulfils 63% of its energy requirements using renewable sources and aims to reach the 100% mark ahead of most automakers in the country. RE100 is a global corporate renewable energy initiative by the Climate Group, bringing together hundreds of large and ambitious businesses committed to 100% renewable electricity.

 

As part of this partnership, HMIL will invest Rs 38 crore towards setting up these renewable energy plants in Tamil Nadu. These facilities will operate in a group captive mode with a special purpose vehicle (SPV) formed for engineering, procurement, construction, operations, and maintenance. HMIL will hold 26% and FPEL will hold 74% equity stake in the project. This long-term agreement will ensure a 25-year supply of renewable energy to HMIL.

Gopalakrishnan Chathapuram Sivaramakrishnan, whole-time director & chief manufacturing officer, HMIL, said, Our collaboration with FPEL will help us achieve the RE100 benchmark by 2025. By harnessing the potential of wind and solar power, we are not only reducing our carbon footprint but also living true to our global vision of Progress for Humanity. We believe this strategic collaboration will inspire other industries to embrace renewable energy and contribute to a sustainable future.

Vivek Subramanian, co-founder & executive director at Fourth Partner Energy, said, Through this agreement, we will be supplying HMIL with over 25 crore units of clean energy every year, which will help the company mitigate CO2 emissions by 2 lakh tons annually. Together, we are setting a precedent for responsible energy consumption and contributing meaningfully to Indias renewable energy goals.

Hyundai Motor India is a part of the Hyundai Motor Group, which is the third largest auto original equipment manufacturer (OEM) in the world based on passenger vehicle sales in CY23. Manufactures and sells reliable, feature-rich, and innovative four-wheeler passenger vehicles backed by the latest technology. Additionally, parts such as transmissions and engines are also manufactured.

The car manufacturers consolidated net profit decreased 15.54% to Rs 1,375.47 crore on 7.5% slide in revenue from operations to Rs 17,260.38 crore in Q2 FY25 over Q2 FY24.

Shares of Hyundai Motor India debuted on the bourses on 22 October 2024. The scrip was listed at Rs 1,931, representing a 1.48% discount to the issue price of Rs 1,960.

The scrip rose 0.38% to Rs 1,832.95 on the BSE.

Powered by Capital Market - Live News