JK Lakshmi Cement Acquires 26% Stake in Solar Power Project

In line with its commitment to sustainability and cost efficiency, JK Lakshmi Cement Ltd. has announced a strategic decision to invest in renewable energy. On 22nd May 2025, the company disclosed to BSE and NSE that it will enter into a Power Purchase Agreement and a Share Purchase & Shareholders’ Agreement with a soon-to-be-incorporated Special Purpose Vehicle (SPV). 

This partnership is aimed at sourcing solar energy under captive power provisions, strengthening the company’s energy security and environmental responsibility.

Strategic Investment in Renewable Energy

JK Lakshmi Cement Ltd.’s acquisition involves a 26% equity stake in the SPV, which is being established by Ampin Energy Transition Private Limited. The SPV is tasked with setting up a 9.9 MWp solar power project. This investment of up to ₹4 crore will qualify the company to access solar energy at competitive market rates for 15 years. With this, JK Lakshmi Cement seeks to reduce its reliance on conventional power sources and cut down on operational power costs across its manufacturing facilities.

Importantly, this acquisition does not involve any related party transactions, and there is no requirement for regulatory approvals. The company expects the acquisition process to be completed by 30th September 2025. The use of cash as the mode of payment underscores a straightforward and financially sound transaction.

Alignment with Environmental and Economic Goals

The SPV, once incorporated, will be categorised as an associate company of JK Lakshmi Cement. The move is part of a broader corporate initiative to explore renewable power avenues, particularly solar, as a means to achieve long-term sustainability goals. The project not only addresses cost efficiency but also enhances the company’s ESG (Environmental, Social, and Governance) profile in an increasingly green-conscious market.

The solar energy sector, to which the SPV will belong, is a critical pillar in India’s renewable energy ambitions. By partnering with a dedicated energy transition firm like Ampin, JK Lakshmi Cement is demonstrating proactive leadership in green energy adoption.

Read More: JK Lakshmi Cement Receives Regulatory Nod for Amalgamation Scheme!

JK Lakshmi Cement Share Performance 

As of May 23, 2025, at 10:40 AM, JK Lakshmi share price is trading at ₹909.40 per share, reflecting a surge of 6.71% from the previous day's closing price. Over the past month, the stock has surged by 13.70%.

Conclusion

JK Lakshmi Cement Ltd’s decision to invest in a solar power SPV marks a pivotal step towards sustainable industrial operations. This initiative underscores the company's dual focus on cost rationalisation and environmental stewardship, reinforcing its position as a forward-looking player in India’s cement industry.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing