Tyre maker CEAT Ltd on Monday announced it has completed the acquisition of 26 per cent stake in Cleanwin Energy, for which it had signed a pact with Yellowstone Clean Energy LLP last month.
Cleanwin Energy owns, operates and maintains a captive wind power generating plant in Maharashtra. The RPG Group company plans to move to 50 per cent renewable power in the next three years.
"We are happy to announce the completion of the acquisition of 26 per cent stake with Cleanwin Energy," Chief Financial Officer CEAT tyres Kumar Subbiah said in a release.
The RPG Group company had in September signed a Limited Liability Partnership (LLP) agreement with Yellowstone Clean Energy to 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 on Monday.
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, the company said adding that the plans are to move to 50 per cent renewable power in three years.
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.
The tyre maker said it has continued to move forward strongly in terms of emission reduction, water conservation, zero effluent discharge, plastic waste management and solar power adoption across its offices and factories.