Chemplast Sanmar to Acquire Stake in JSW Green Energy Nine for Captive Renewable Power

Chemplast Sanmar Ltd., along with its wholly owned subsidiary Chemplast Cuddalore Vinyls Ltd. (CCVL), has announced its plan to acquire equity shares in JSW Green Energy Nine Ltd., a Special Purpose Vehicle (SPV) set up by JSW Neo Energy Ltd.

This investment is part of Chemplast’s strategic move to source renewable energy under the Group Captive Power Scheme, reducing its dependence on conventional power sources and lowering operational costs.

The SPV has been incorporated to develop renewable power projects in Tamil Nadu, with a planned solar capacity of 64.9 MW AC (92.80 MW) and wind capacity of 20 MW. Once operational, it will supply power to Chemplast Sanmar and CCVL, ensuring a sustainable and cost-effective energy source.

The agreement, structured under the Group Captive Power Scheme, will allow Chemplast to secure a long-term supply of green energy, significantly reducing its carbon footprint and energy expenses.

Under the proposed transaction, Chemplast Sanmar will acquire an 18.46 percent stake, while its subsidiary CCVL will hold 7.81 percent of the total paid-up equity share capital of JSW Green Energy Nine Ltd.. The total investment amounts to INR 21.38 crores for Chemplast Sanmar and INR 9.05 crores for CCVL, which will be made in cash through one or more tranches. 

JSW Green Energy Nine Ltd. was incorporated on October 18, 2024, specifically for renewable power generation and transmission. As it has not yet commenced commercial operations, there is no financial turnover history. The company is focused on the development of hybrid solar and wind power solutions, aligning with India’s growing push toward clean energy adoption.

This investment is expected to bring multiple benefits to Chemplast Sanmar, including lower electricity costs, reduced carbon emissions, and improved sustainability practices.

By securing a stake in the SPV, the company ensures a stable and cost-effective supply of green energy, reinforcing its commitment to environmental responsibility while enhancing its overall operational efficiency. The acquisition is expected to be completed within statutory timelines, with no regulatory approvals required.

With this move, Chemplast Sanmar strengthens its position in the renewable energy space, aligning with the broader industry trend of transitioning to sustainable power sources.

The strategic partnership with JSW Neo Energy Ltd. marks a significant step toward energy security and cost optimisation for the company’s manufacturing operations in India.