Mahindra CIE Automotive Takes 27% Stake in Captive Power Developer Strongsun Solar

Automotive component maker and supplier Mahindra CIE Automotive has said that it has invested Rs 2.42 crore in Strongsun Solar. Mahindra has made the investment through a subscription of 3,03,250 equity shares of Rs 10 each of Strongsun Solar which will constitute 27.35% of the post-issue paid-up capital of the renewable energy company.

Strongsun Solar is based out of Mumbai, Maharashtra, and delves in the development of captive power generation projects and other renewable energy assets in India.

Mahindra CIE Automotive said in a corporate filing, “The Company today i.e., 12th December, 2022 has invested INR 24.26 Million towards subscription of 3,03,250 equity shares of INR 10/- each of Strongsun Solar Private Limited (Strongsun) which will constitute 27.35% of the post-issue paid-up capital of Strongsun.”

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Mahindra firm also said in the same filing, “In order to qualify as a captive consumer, the Company must hold at least 26% of the total equity capital of the Power Generating Plant(s).”

As per reports, Strongsun Solar is developing two captive solar power plants having capacities of 7 MWp and 3 MWp. The key purpose of the solar projects is to supply green electricity to the firm’s factory of Foundry Division at Urse (7 MWp) and Magnetics Products Division at Bhosari (3 MWp).

This investment will help Mahindra CIE Automotive to qualify as a captive consumer. It will also help in optimizing the power cost at the plants.

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In September, the Mahindra Group announced a strategic alliance with the Canadian-based pension firm, Ontario Teachers’ Pension Plan Board to take advantage of the expanding renewables market in India. Both parties entered into legally binding agreements under which Ontario Teachers’ will purchase a 30% equity stake in Mahindra’s solar development arm, Mahindra Susten for an equity value of Rs. 2,371 crores (roughly $300 million).

Earlier this year, Mahindra Susten commissioned the first portion of a 175 MW (AC) out of the total 250 MW solar project at Kolayat in Bikaner district of Rajasthan. Mahindra Susten has 11 projects in India.