Godrej Industries Acquires 26% Stake In Subsidiary Of Clean Max Enviro Energy Solutions

Godrej Industries Ltd. acquired a 26% stake in Clean Max Kaze Pvt., a subsidiary of Clean Max Enviro Energy Solutions Pvt., on Thursday, according to an exchange filing.

The initial investment for acquiring a 26% stake has been completed. A further investment of up to Rs 7.59 crore in Clean Max Kaze by subscribing to the rights issue based on the valuation report will be completed by Jan. 31, 2025 , it said.

Godrej Industries acquired 2,600 equity shares of Clean Max Kaze with a face value of Rs 10 each for Rs 26,000.

The company has made "this investment for setting up a renewable energy project" so that it can use alternate hybrid renewable power — wind and solar — at its Valia factory in Gujarat. As a result of the move, Godrej Industries will save on cost and it will also help in having "green power" and that too at lower rates compared to the power grid.

The acquisition is within the overall limit approved by its shareholders for making investment in Clean Max under Section 186 of the Companies Act, it said.

In May, the board of the Godrej Group company approved an "investment of up to Rs 10 crore, by way of subscription/purchase or otherwise in Clean Max Kaze/Clean Max Enviro or any other entity and/or any other body corporate(s), in accordance with Gujarat Renewable Energy Policy.

Clean Max Kaze is in the business of developing wind-solar hybrid power generation facilities in Gujarat. It has wind turbine generators and a solar power plant for supplying contracted quantities of electricity.

Shares of Godrej Industries closed 1.79% lower at Rs 1,075.40 apiece on the National Stock Exchange, compared to a 0.38% decline in the benchmark Nifty 50. 1,075.40