Greenply Industries Limited, India’s leading manufacturer of Plywood and allied products today announced that, it along with its Wholly Owned Subsidiary, Baahu Panels Private Ltd, have signed a Power Purchase Agreement (PPA) and Share Holders Agreement (SHA), for a combined SMW capacity with Renew Green (GJ Four) Private Limited, a special purpose vehicle (SPV) promoted by Renew Green Energy Solutions Private Limited (RGS).
Highlights of the transaction
- Greenply Industries Limited will own a 3.12% stake, Baahu Panels will own 28.08% stake in the SPV while the balance will be held by Renew Green Energy Solutions Private Limited
- The consideration to be paid will be Rs 0.575 Crs by Greenply and Rs 5.175 Crs by Baahu Panels Private Ltd.
- The power will be used by the company at its unit in Rajkot starting Q3 FY23 and at Baahu Panel’s greenfield MDF board manufacturing unit at district Vadodara, Gujarat once it is operational.
- The hybrid power plant is expected to be operational in Q3 FY23 and will be operated by the Power Producer i.e. the SPV.
Commenting on the transaction, Mr. Manoj Tulsian, JMD & CEO, Greenply Industries Ltd. said “We are happy to announce this transaction which is in-line with our commitment towards sustainable way of operations at Greenply. The power produced from this arrangement with ReNew group will meet nearly 40% of our requirements at our Vadodara MDF facility and help us in our ESG efforts. We are proud to move our energy requirements to cleaner sources and reduce CO2 emissions while aiding in India’s ambitious climate related goals”