After India Cements, Aditya Birla Group's UltraTech Cement Bags 26% Stake In This Company - Details

UltraTech Cement has announced an agreement to acquire a 26% equity stake in CleanMax Sapphire, a special-purpose vehicle (SPV) formed to cater to the company’s renewable energy needs. The deal, valued at Rs 457.6 million, marks a notable step in UltraTech’s strategy to lower energy costs and enhance its sustainability efforts.

CleanMax Sapphire will oversee the development of a 55 MW wind-solar hybrid project in Honawad, located in Karnataka's Vijayapur district. The energy produced from this facility will be used to supply UltraTech Cement’s operations, helping the company meet its growing green energy requirements. The transaction is expected to conclude within the next 180 days, according to a regulatory filing by UltraTech Cement.

This venture is part of UltraTech's broader commitment to sustainability and regulatory alignment, particularly with India’s evolving captive power consumption regulations. The company, which has been ramping up its green energy usage, believes this project will provide long-term energy savings while bolstering its environmental credentials.

This announcement follows UltraTech’s recent efforts to modernise its logistics operations. In November 2024, the company signed contracts for 100 electric trucks to transport clinker between Madhya Pradesh and Maharashtra, marking a significant step towards decarbonising its supply chain.

Earlier in August 2024, UltraTech raised $500 million in a sustainability-linked loan, a move that further underscores its focus on meeting its environmental, social, and governance (ESG) objectives.

UltraTech Cement’s move into renewable energy comes on the heels of its strategic acquisition of a controlling stake in India Cements, solidifying its position as a key player in the Indian cement sector. The acquisition, valued at Rs 7,000 crore, not only enhances its market share but also aligns with the Aditya Birla Group’s broader growth strategy in the industry.