UltraTech Cement Invests Rs 49 Cr to Secure 26% Stake in Amplus Ages

Introduction

UltraTech Cement, a leading cement maker and a part of the Aditya Birla Group, has announced the acquisition of 26% stake in Amplus Ages Pvt Ltd, a renewable energy company, by investing Rs 49 crore. The deal is expected to help UltraTech Cement meet its green energy needs, optimise energy cost and comply with regulatory requirements for captive power consumption under electricity laws.

Details of the Acquisition

According to a regulatory filing, UltraTech Cement has entered into a share subscription and shareholders’ agreement to acquire 26% equity shares of Amplus Ages Pvt Ltd. The acquisition is expected to be completed within 180 days from the execution of the electricity offtake agreement and share subscription and shareholders agreement. Amplus Ages is engaged in the generation and transmission of renewable energy, mainly solar power, and has an installed capacity of 1.2 GW across India as on September 30, 2022. The company is a subsidiary of Amplus Solar Power Pvt Ltd (ASPPL), which is owned by Petroliam Nasional Berhad group (PETRONAS), a Malaysian integrated oil and gas multinational owned entirely by the Government of Malaysia.

Benefits of the Acquisition

The acquisition will enable UltraTech Cement to source renewable energy from Amplus Ages at competitive rates and reduce its carbon footprint. The company has set a target of reducing its carbon emissions by 25% by 2030 from the 2005-06 level. The company also aims to increase its renewable energy share to 34% by 2024 from the current 13%. The acquisition will also help the company diversify its energy portfolio and hedge against volatility in grid power tariffs. The acquisition will also strengthen the relationship between UltraTech Cement and PETRONAS, which are both committed to sustainability and clean energy.