Samvardhana Motherson to Acquire 28.15% Stake in Renewable Energy SPV HR Dhauliganga

Samvardhana Motherson International Limited (SAMIL) has approved a significant move to advance its sustainability objectives by partnering with HR Dhauliganga Private Limited (HRDPL). This initiative involves the execution of Power Delivery Agreements (PDA) and a strategic equity investment in a newly formed renewable energy entity. The step reflects the company’s long-term commitment to clean energy adoption and regulatory compliance under India’s electricity laws.

Clean Energy Push to Drive Operational Efficiency

The Board of Directors of Samvardhana Motherson International Limited has approved the execution of Power Delivery Agreements (PDA) with HR Dhauliganga Private Limited. The strategic initiative is a step forward in SAMIL’s sustainability roadmap, aiming to lower carbon intensity across operations. The dedicated 50MWp solar captive plant will provide a reliable and long-term cost-effective supply of renewable energy to multiple operational facilities in Tamil Nadu, India, with an estimated potential reduction in CO2 emissions of 1.38 million metric tons over the project life.

Stake Acquisition to Comply with Electricity Laws

Further, to comply with regulatory requirements for captive power generation and consumption under Electricity Laws, SAMIL and its Subsidiaries propose to enter into an agreement to acquire a 28.15% stake in HRDPL. 

HRDPL is a special purpose vehicle (SPV) set up by Hinduja Renewables Energy Private Limited (HREPL), incorporated on December 10, 2024. SAMIL and its subsidiaries will invest up to ₹141.3 million in one or more tranches. SAMIL alone will hold 18.35%, while HREPL will retain the majority equity. The investment, involving a cash consideration, is expected to be completed in Q2 FY26.

The acquisition is not a related party transaction, and there is no promoter or group company interest. As per financials dated March 31, 2025, HRDPL reported NIL revenue, EBITDA of -₹0.59 million, and net worth of -₹0.49 million.

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SAMIL Share Price Performance 

As of 20 June 2025, 11:26 AM, SAMIL share price is trading at ₹149.35 per share, a 1.09% increase. Over the month, the stock has surged by 15.13%.

Conclusion

By securing clean energy through a captive solar power source and acquiring a stake in HRDPL, SAMIL is aligning its operations with global ESG standards and national power regulations. This proactive approach not only addresses regulatory mandates but also demonstrates leadership in corporate sustainability.

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