UltraTech Cement invests in solar to cut energy costs and meet green goals

UltraTech Cement invests ₹25.5 crores in solar energy firm AMPIN C&I Power Eight to cut energy costs and meet green goals through a new solar project in Rajasthan.

UltraTech Cement Limited, one of India's top cement manufacturers, has announced an investment of up to ₹25.5 crores. This money will be used to acquire a 26% equity stake in AMPIN C&I Power Eight Private Limited. 

The company works within the renewable energy industry, specialising in power generation and transmission. This investment is part of UltraTech's long-term plan to reduce energy costs and shift towards greener, more sustainable sources of power.

Solar power project in Rajasthan

The investment will help build a large solar power project in Sindhari village, Balotara district, Rajasthan. This solar plant will have a planned capacity of 75 MWp DC / 50 MW AC. The project will be developed by AMPIN C&I Power Eight, a Special Purpose Vehicle (SPV) formed only for this purpose. The SPV was registered on January 29, 2025, and is dedicated to setting up clean energy infrastructure.

Agreements for captive energy use

To support this acquisition, UltraTech Cement has signed multiple agreements. These include an energy supply agreement, a share subscription agreement, and a shareholder agreement. These agreements ensure that the energy produced from the solar project will be used directly by UltraTech for its operations, which is known as 'captive power'. This approach aligns with India's electricity regulations and helps the company secure stable, clean energy for the future.

Focus on cost savings and compliance

The investment is also a smart financial move. By producing its solar energy, UltraTech plans to reduce its long-term electricity costs. It also helps the company move away from traditional energy sources like coal. At the same time, UltraTech is ensuring that it follows updated power usage rules and government guidelines. This step supports responsible business growth with a focus on environmental care.

Timeline and ownership details

UltraTech Cement expects the acquisition process to be completed within 180 days of signing the agreements. The company also confirmed that this is not a related-party transaction. This means UltraTech's promoters or key management do not hold any direct or indirect stake in AMPIN C&I Power Eight.

Strong financial growth and green goals

UltraTech Cement continues to show strong performance in the market. The company is valued at approximately USD 8.4 billion. Its share price increased by 23.92% over the past year and has delivered returns of 74.26% over the last three years, beating many market benchmarks.

UltraTech was trading at ₹11,759, up by 0.26% at 11:20 AM on April 17, 2025, on the National Stock Exchange (NSE). With a total grey cement capacity of 183.06 million tonnes per annum, UltraTech remains a leader in the industry. Its continued investment in renewable energy shows a firm commitment to using clean energy in its production process. This project in Rajasthan is another big step towards energy efficiency and sustainable growth.