Pritika Auto Industries Limited submitted a regulatory disclosure pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, regarding a solar power initiative by its subsidiary.
Key Quantitative Figures
The arrangement is expected to deliver total savings of approximately ₹110 crore over the 25-year tenure. Specifically, Pritika Engineering Components Limited and Meeta Castings Limited are expected to benefit with savings of approximately ₹70 crore, while Pritika Auto Industries Limited would benefit from the balance savings.
Corporate Structure
A Special Purpose Vehicle (SPV) will be established for the solar power project. Pritika Engineering Components Limited is expected to hold 26% equity in the SPV on behalf of the Pritika Group of Industries, subject to completion of applicable approvals and documentation.
Purpose and Rationale
The initiative is aligned with the Group's focus on improving operational efficiency, reducing long-term energy costs, and increasing the contribution of renewable energy to its power requirements. The arrangement aims to provide greater visibility on energy costs while supporting sustainability objectives.
Management Commentary
Mr. Harpreet Singh Nibber, Chairman & Managing Director of Pritika Auto Industries Limited, commented that this arrangement marks an important step in enhancing energy efficiency and creating sustainable cost advantages. He emphasized the competitive tariff rate and expected savings of ₹110 crore for the Group, with approximately ₹70 crore for Pritika Engineering Limited.
Financial Impact
The financial impact is quantified as expected savings of ₹110 crore over 25 years, with specific allocations to group companies. The equity investment in the SPV (26% by Pritika Engineering) is subject to approvals.