India's Vardhman Signs 27MW Wind-Solar Power Supply Agreement

en.Wedoany.com Reported - On October 5, Indian textile manufacturer Vardhman Textiles signed an equity subscription and power supply agreement with Serentica Renewables to procure 27MW of hybrid wind-solar renewable power through Serentica Renewables India 32 Private Limited for its Himachal Pradesh production facility. Vardhman plans to invest approximately INR 418.5 million in cash to acquire at least a 26% stake in the project company.

According to the exchange filing submitted by Vardhman, the project company was established in June 2025 and has not yet commenced commercial operations. The project capital scale is approximately INR 1,609.6 million, of which Vardhman's corresponding minimum 26% equity contribution is approximately INR 418.5 million, and Serentica's corresponding maximum 74% equity contribution is approximately INR 1,191.1 million. Vardhman's investment will be paid in three tranches in accordance with the project construction progress.

Vardhman's announcement disclosed that its 27MW power procurement arrangement corresponds to a development scale of 40MW wind power and 30MW photovoltaic, with the project adopting a group captive power structure to meet the Captive Power conditions under Indian electricity regulations. The wind power project is located in Gadag, Karnataka, and the photovoltaic project is located in Fatehgarh, Rajasthan. The project company is responsible for the construction and operation of the relevant renewable energy facilities.

Project materials released by Serentica during the same period show that the overall cooperation scheme involves 40MW wind power in Gadag and 40MW photovoltaic in Fatehgarh, with a total installed capacity of 80MW, an expected capacity utilization factor of approximately 75%, and plans to supply approximately 177 million kWh of round-the-clock renewable power to Vardhman's Himachal Pradesh facility. Of this, Vardhman's formally contracted capacity in this transaction is 27MW.

Vardhman expects that once the project begins supplying power, it will cover approximately 56% of the electricity demand at its Baddi production base. The company disclosed that the use of related green power is expected to reduce carbon emissions by approximately 125,900 tonnes per year. Vardhman's existing textile business covers yarn, fabric, apparel, and fiber segments, and multiple production bases continue to increase solar and hybrid wind-solar power procurement.

Serentica is currently building large-scale wind, photovoltaic, and energy storage projects in Karnataka, Rajasthan, and other regions of India. Its existing project portfolio includes an approximately 650MW integrated wind-solar project in the Gadag area and an approximately 1,300MW round-the-clock renewable energy project in Fatehgarh. The Vardhman agreement in this transaction corresponds to the captive power supply arrangement for industrial customers within these projects.