Orient Cement, a subsidiary of the CK Birla Group announced that it would acquire a 26 per cent stake in AMPSolar Systems. As per the agreement, Orient entered into a share purchase, subscription, and shareholders agreement with AMPSolar Technology Private Limited and AMPSolar Systems Private Limited. The acquisition has been made to fulfil a regulatory requirement under India’s captive consumption laws. AMPSolar systems will set up a solar power plant in Maharashtra of 13.5 MW which will serve as a primary captive supplier to Orient Cement. The acquire stake is valued at Rs 40.5 million and is set to be completed within six months. The plant is expected to be operational by 2021 subject to approvals.
AMPSolar Systems is a subsidiary of AMP Solar technology. The company develops, owns, and operates renewable energy infrastructure to supply solar power to consumers and industries. The captive power model has gained traction as companies aim to reduce emissions. This is because electricity is more difficult to procure for companies through the open-access model. In May 2019, Cipla Limited agreed to acquire a 26 per cent stake on a fully diluted basis in AMPSolar. Bharti Airtel also agreed to a similar captive power deal with the solar company at a value of about Rs 84 million.