INDIA –Cipla, one of India’s major pharmaceutical companies, has agreed to buy roughly one-third of AMP Energy Green Eleven, in line with the company’s commitment to enhance the share of renewable power source in its operation and to comply with regulatory requirement and cement sustainability in its business.
The move is intended to establish a captive solar power project in the Indian state of Maharashtra.
Cipla said in a regulatory filing that it has entered into a shareholder agreement as well as a separate power purchase agreement (PPA) to acquire up to 32.49 percent of AMP Energy Green Eleven on a fully diluted basis.
Captive generation rules generally require key consumers to own at least a 26 percent stake in the renewable venture supplying them with power.
In terms of AMP Energy Green Eleven, the company was founded in November of 2020. It is in the business of generating and supplying solar energy-generated electricity.
Some of the key projects have given the company international exposure. It has completed projects in Canada, the United States, Japan, Jordan, Australia, and many other countries.
The Carlyle Group made a US$374 million strategic commitment to AMP in the form of a strategic growth investment in 2020.
The firm’s primary focus remains the corporate PPA market, where it has built a portfolio of high-quality partnerships with corporations across the board for renewable energy supply.
It bills itself as India’s first truly balanced renewable energy company. AMP has a presence in 15 states and a portfolio of 1.5 GW.
It currently provides green power to 45+ high-profile customers across 10+ industries, including pharmaceuticals, automobiles, data centers/information technology, Fast-moving consumer goods, cement, infrastructure, education, and heavy industry.
Cipla’s new sourcing arrangement is consistent with its commitment to increase the share of renewable energy sources in its operations and to meet regulatory requirements for being a captive user under Indian electricity laws.
In other news, Cipla announced in December that it has agreed to acquire a 33% stake in renewable energy firm Clean Max Auriga Power LLP for up to Rs six crores (US$793,204), in a deal that will see the latter become an associate of Cipla.
Clean Max Auriga Power is a special purpose vehicle that manufactures, supplies, and distributes solar, wind, and other renewable energy generation plants.
It was formed on February 18th, 2019 with the intention of establishing a captive wind and solar, renewable power generation plant (Project) in Karnataka.
Meanwhile, Cipla said in a separate filing that its Global Chief Financial Officer Kedar Upadhye has resigned.
Upadhye will serve his three-month notice period until the end of business on May 3, 2022, according to the statement.
According to the drug company, his successor will be announced by the company’s board of directors in due course.
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