Cipla on track with ESG goals; acquires 33% stake in renewable power company
The drug maker acquired 33% of the partnership interest in Clean Max Auriga Power LLP.
This agreement is in line with the company’s commitment to enhance the share of renewable power sources in its operation and to comply with the regulatory requirement for being a captive user under electricity laws. Captive user means Cipla would be an end-user of the electricity generated from the plant.
Background of Target entity
Clean Max Auriga Power is engaged in the business of production, supply, and distribution of solar and wind or other renewable energy generation plant. It was incorporated on 18 February 2019 with two people to set up captive wind and solar, renewable power generation plant in Karnataka.
Deal size: Cipla paid Rs 6 crore for the acquisition. Post-acquisition, Clean Max Auriga Power LLP will become an associate of Cipla Limited.
Comments from Top Executives
“ESG is at the centre of focus at Cipla and with this acquisition, we are progressing on the right track of being purposeful by embedding sustainability into our business. It is a testament to our commitment to using cleaner, renewable sources of energy and it fuels our ambition of enabling a greener environment,” said Kedar Upadhye, President and Global CFO of Cipla.
“This acquisition is in line with our steady efforts towards progressing on goals that we have out to achieve in the ESG space. Sustainability is at the core of Cipla and while we have miles to go in this path that we have undertaken to achieve our ESG goals, we are gradually moving towards it through such acquisitions and partnerships,” asserted Geena Malhotra, Global CTO who spearheads Cipla’s ESG agenda.
There is no major movement in the stock price, shares opened with a 0.7% gap up at Rs 902 in the morning but declined after that. At 2.45 PM it was trading at Rs 881, down by 1.6% for the day from the previous close of Rs 895.70.
Start Investing Now!
Open Free Demat Account in 5 mins