Suzuki Motor Corporation, through its wholly-owned subsidiary Suzuki R&D Center India (SRDI), has entered into an agreement with the National Dairy Development Board (NDDB) to invest in its biogas subsidiary, NDDB Mirda. Suzuki will acquire a 26 per cent equity stake in NDDB Mirda, with the remaining 74 per cent retained by NDDB. The equity transaction is valued at par, with an initial equity capital of Rs 3 billion. The first phase involves an investment of Rs 340 million, where Suzuki will contribute Rs 88.4 million, and the remaining Rs 251.6 million will be invested by NDDB. This investment is expected to scale up gradually based on requirements.
Initially, Suzuki had sought a 49 per cent equity stake in NDDB Mirda, but the Government of India permitted a maximum of 26 per cent, with the option for Suzuki to increase its equity to 49 per cent over time. Suzuki’s interest in NDDB’s biogas plants stems from its focus on sustainability and environmentally friendly vehicle solutions using compressed biogas (CBG) and compressed natural gas (CNG). Suzuki conducted internal tests that indicated CBG derived from cattle dung performs better in terms of vehicle longevity and engine performance compared to other biogas sources.
The partnership also involves collaboration with Banas Dairy to establish multiple CBG production centres in Gujarat’s rural areas, leveraging NDDB’s extensive network. Under this model, NDDB will develop the CBG plants, Banas Dairy will operate them, and Suzuki will provide funding through its corporate social responsibility initiative. The plan includes the construction of four new CBG plants to support Banas Dairy’s existing plant. Over time, both Banas Dairy and Suzuki will share the profits from these operations.
