UltraTech Cement to buy 26% stake in solar SPV for ₹27.75 crore
UltraTech Cement will acquire a 26% stake in Solaris Horizon Energy to source captive solar power for its Mungeli plants in Chhattisgarh, advancing its clean-energy strategy and potentially lowering operating costs.
The development
Aditya Birla Group company UltraTech Cement will acquire 26% of Solaris Horizon Energy for ₹27.75 crore to secure captive solar power for its Mungeli plants, supporting lower energy costs, regulatory compliance and its expanding clean-energy portfolio.
The numbers
- 26% equity stake
- ₹27.75 crore investment
- 65 MW solar project
- 371 MW renewable capacity commissioned in FY2026
- 1.39 GW installed renewable capacity
- 63 MW waste-heat recovery added
- 1.81 GW total clean power capacity
- 41% green energy share in FY2026
- 43% green power mix in Q4 FY2026
Why it matters to operators and investors
The deal illustrates a capital-efficient route to decarbonization: take a strategic minority stake in a dedicated renewable SPV to lock in captive power supply.
What to watch next
- Solaris Horizon Energy project commissioning date, actual generation, and UltraTech's contracted share of output.
- Changes in Chhattisgarh captive-power, open-access, banking, transmission-charge, and cross-subsidy rules.
- UltraTech's reported renewable-energy share, thermal-power cost per tonne, and EBITDA per tonne at the Mungeli-linked operations.
- Additional renewable SPV investments, storage procurements, or group-captive agreements announced by UltraTech.
- Competitor renewable-power capacity additions by large cement producers in central and eastern India.
- Pursue further minority stakes or long-term offtake agreements in solar, wind-solar hybrid, and captive renewable SPVs near major cement clusters.
- Increase investment in round-the-clock renewable solutions, including storage and hybrid contracts, to improve usable renewable penetration beyond daytime solar generation.
- Highlight renewable-power additions in sustainability disclosures and investor communication as evidence of lower carbon intensity and more stable energy costs.
- Use lower renewable energy costs to support competitive pricing or margin defense in central India if regional cement supply increases.
The counter-case
The transaction is strategically modest relative to UltraTech’s overall energy needs and may have limited impact on consolidated costs or emissions. A 26% minority stake in an SPV provides less operational control, while the economic benefit depends on solar generation reliability, grid connectivity, captive-power regulations and the final tariff versus alternative power sources. The ₹27.75 crore equity outlay may also understate future commitments, including guarantees, power-purchase obligations or project-related costs. If commissioning is delayed or renewable-energy rules change, expected savings could be deferred or reduced.