Nandan Denim Buys 6.1% Stake in Renewable SPV to Lock 25‑Year Green Power for Bareja Plant

Nandan Denim will acquire a 6.1% equity stake in a renewable‑energy special purpose vehicle for ₹4 crore, securing 4.3 MW of wind and solar power for its Bareja plant over the next 25 years.

Nandan Denim Limited is a major textile manufacturer based in Gujarat. The company is looking to cut electricity costs and meet sustainability goals by sourcing power directly from renewable projects. A special purpose vehicle (SPV) is a legal entity created to isolate financial risk, often used for group captive power arrangements where multiple users share generation assets.

Under the deal, Nandan Denim will pay ₹4.00 crore for a 6.1% share in the SPV operated by Opera Vayu (Narmada) Private Limited and Shivman Wind Energy Private Limited. The SPV runs wind and solar farms under a group captive model, allowing participants to consume the electricity they help fund. This arrangement will deliver about 4.3 megawatts of combined wind and solar power to the company’s Bareja plant.

The agreement guarantees access to competitively priced green energy for a quarter‑century, locking in rates that are expected to be lower than grid tariffs. Nandan Denim will also provide an irrevocable bank guarantee of ₹1.90 crore to cover short‑term billing obligations, with the transaction slated for completion by June 30 2026.

By embedding renewable power into its operations, Nandan Denim aims to reduce operating expenses, lower its carbon footprint, and enhance long‑term energy security. The move aligns with broader industry trends where manufacturers invest directly in clean energy to hedge against volatile fossil‑fuel prices.

Watch for the closing of the transaction in mid‑2026 and any subsequent announcements about additional renewable investments or cost savings reflected in Nandan Denim’s financial reports.