India’s prominent tyre maker CEAT Ltd has announced the completion of its acquisition of a 26 per cent stake in Cleanwin Energy, for which it had signed a Limited Liability Partnership (LLP) pact with Yellowstone Clean Energy in September.
Cleanwin Energy owns, operates, and maintains a captive wind power generating plant in Maharashtra. This is in keeping with the RPG Group company CEAT’s intention of moving to 50 per cent renewable power in the next three years.
“We are happy to announce the completion of the acquisition of 26 percent stake with Cleanwin Energy,” said chief financial officer CEAT tyres, Kumar Subbiah in a release. In September, as per the agreement, CEAT would invest up to Rs 60 lakh in Cleanwin Energy Five LLP.
In line with the norms to avail power for captive use, this also makes CEAT a 26 per cent shareholder in Cleanwin Energy, as per the company.
“We are very pleased to make this investment as it is another step towards our focus to reduce carbon footprint by 50 per cent by 2030. It is a great initiative to develop and harness renewable sources of energy and towards a sustainable future,” Subbiah said in the release.
Cleanwin Energy is promoted as a special purpose vehicle, with the sole business of renewable energy generation from renewable sources. It will supply electricity on a captive basis to CEAT, which has moved to renewable energy for all its six plants in India, the tyre maker said. CEAT is currently using 25 per cent of its energy requirement from renewable sources. Cleanwin will provide 5 MW wind power to CEAT plants in Bhandup and Nashik. This will complement the existing solar energy plants already in place for both Bhandup and Nashik, it said.