Investment of ₹41.85 crore by Vardhman Textiles into the Renewable Energy Venture of Serentica Renewable Energy

The Indian textile manufacturing company Vardhman Textiles is investing ₹41.85 crore in a renewable energy venture of Serentica Renewables which will provide access to wind-solar hybrid power to Vardhman Textiles for its plants in Himachal Pradesh. 

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Vardhman Textiles will be buying at least 26% stake in a special purpose vehicle called “Serentica Renewables India 32 Private Limited” which would undertake the development and operation of renewable power projects. 

The deals have been inked between the two companies on October 5, following the approval by Vardhman Textiles Committee of Directors for Renewable Energy on October 4. 

Under this deal, Vardhman will get 27 MW of contracted wind-solar hybrid power. 

Project Spans Karnataka and Rajasthan 

The renewable power will come from projects being developed in two states. 

A 40 MW wind plant will be set up in Karnataka, while a 40 MWp solar plant, with 30 MW capacity as specified in the filing, will be developed in Rajasthan. 

The projects will be connected to the interstate transmission system and will include the associated land, transmission infrastructure, transformers, switchgear and other equipment required to operate the facilities. 

Together, the projects will supply 27 MW of contracted hybrid power to Vardhman Textiles’ facilities in Himachal Pradesh. 

The arrangement will operate as a captive power project. 

Vardhman to Pay ₹41.85 Crore for Minimum 26% Stake 

Vardhman Textiles will invest ₹41.85 crore in cash for a minimum 26% equity stake in Serentica Renewables India 32. 

Its investment will not be made in one go. The company plans to contribute the amount in three tranches as different stages of the renewable project are completed. 

The total capital of the project company is planned at ₹160.96 crore. 

Serentica Renewables India Private Limited will contribute ₹119.11 crore for a stake of up to 74%, while Vardhman will contribute the remaining ₹41.85 crore for its minimum 26% holding. 

Why Vardhman Is Taking an Equity Stake 

The investment is tied directly to the captive nature of the power arrangement. 

Vardhman said the minimum 26% stake is being acquired to meet regulatory requirements for captive power consumption under Indian electricity laws. 

The company will have rights over certain reserved matters concerning the project company. Voting rights between Vardhman and Serentica will be proportionate to their respective shareholdings. 

Vardhman, however, will not appoint a director to the board of Serentica Renewables India 32. 

The company also clarified that the deal is not a related-party transaction and that its promoters, promoter group and group companies do not have an interest in the renewable energy SPV. 

Commercialization of Serentica SPV Still Awaited 

Serentica Renewables India 32 was set up on June 29, 2025 as a special purpose vehicle for renewable power projects development and operations. 

The commercialization of the SPV is yet to be started. 

This implies that the new announcement is about investment and procurement deal for power plants under construction, not about immediate expansion of the operational renewable power generating capacities. 

After the wind and solar power plants would be completed, they are supposed to deliver 27 MW of renewable energy to the Himachal Pradesh facilities of Vardhman Textiles. 

So, for Vardhman, the investment worth of ₹41.85 crore will serve two aims at once – ownership stake in the captive power station and its own source of hybrid wind and solar energy.