Tire manufacturer CEAT Ltd. has reportedly executed the acquisition of a 26% share in Cleanwin Energy, for which it inked an agreement in September 2021 with Yellowstone Clean Energy LLP. Cleanwin Energy is the owner, operator, and maintainer of a captive wind power production plant in Maharashtra. The RPG Group firm aims at moving to 50% renewable power over the next three years.

Kumar Subbiah, the Chief Financial Officer of CEAT tires, stated that the company is delighted to complete the acquisition of a 26% stake with Cleanwin Energy. The RPG Group firm inked an LLP (Limited Liability Partnership) pact last month with Yellowstone Clean Energy to make an investment of around USD 80,566 (Rs 60 lakh) in Cleanwin Energy Five LLP. This move makes CEAT a 26% stakeholder in Cleanwin Energy, which will be in line with the regulations to avail power for captive usage, as affirmed by the company.

Subbiah added that CEAT is pleased to make this investment as it is a new step towards the company’s focus to curb carbon footprint by 50% by 2030. It is a great initiative to develop and control renewable energy sources and move towards a sustainable future, said Subbiah.

Cleanwin Energy is marketed as a special purpose vehicle, with its only business being generating renewable energy from renewable resources. It provides CEAT with electricity on a captive basis, since the tire company has shifted to renewable energy for all its six facilities in India, as stated by CEAT.

Currently, CEAT fulfills 25% of its required energy from renewable sources and it plans to move to 50% renewable power over the next three years.

Cleanwin will offer wind power of 5 MW to CEAT facilities in Nashik and Bhandup. This will be in line with the current solar energy facilities already positioned for both Nashik as well as Bhandup.

CEAT has stated that it continues to strongly move further in terms of water conservation, emission reduction, plastic waste management, zero effluent discharge, as well as the adoption of solar power across its factories and offices.

Source credits:

https://www.moneycontrol.com/news/business/ceat-announces-completion-of-26-stake-buy-in-cleanwin-energy-7541511.html