UNO Minda, a leading manufacturer of automotive parts, has projected that they would be investing as much as 4.75 crore in a Special Purpose Vehicle (SPV) that would deal with sourcing solar power in Tamil Nadu. This strategic investment is the first step of UNO Minda to enter into the renewable energy infrastructure sphere because the company is interested in sustainable development and adheres to the use of green energy solutions.
The mergers and acquisitions committee of the UNO Minda board of directors gave approval to the investment in a meeting on September 5. The investment will be done in one or more tranches where the company will own up to 30 percent of the equity in the SPV that is yet to be incorporated. It is projected that the whole transaction will be done in the fourth quarter of this year.
The main purpose of the move is to make more renewable energy use in the operations of UNO Minda in Tamil Nadu. The company will also utilize the effect of the Captive Open Access Solar power that will help it to acquire clean energy to manufacture and use in other activities. This is in line with the larger sustainability efforts and international trends of more eco-friendly, cleaner sources of energy in industrial sectors.
The SPV shall specialize in the development, generation, and distribution of solar power plants in India. In this venture, UNO Minda aims at diversifying its business interests beyond automotive components and establishing a presence in the emerging marketplace in the renewable energy sector.
UNO Minda has reported this investment under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has explained that this investment is not characterized by any party dealings.
