Nitin Spinners Limited, a prominent name in the Indian textile industry, has announced the acquisition of an 18.12% equity stake in CGE II Hybrid Energy Private Limited, a company engaged in the power generation sector focused on renewable energy. This strategic acquisition is designed to strengthen Nitin Spinners’ renewable energy portfolio by augmenting its captive power supply through wind and solar hybrid projects located in Rajasthan.

About CGE II Hybrid Energy Private Limited

CGE II Hybrid Energy Private Limited is a subsidiary of Continuum Green Energy Limited and functions as a Special Purpose Vehicle (SPV) dedicated to power generation, distribution, transmission, and supply of renewable power within Rajasthan. Incorporated on December 2, 2021, the company has focused exclusively on renewable energy ventures, specifically wind and solar hybrid projects.

The company has no turnover recorded for the past three financial years, 2022-23, 2023-24, and 2024-25, as it is still in the early stages of operation and asset build-up. The authorized share capital of CGE II Hybrid Energy stands at Rs. 325 crore, with a paid-up share capital of approximately Rs. 94.56 crore.

Strategic Rationale Behind the Acquisition

The primary objective of this acquisition is to enhance Nitin Spinners’ renewable power supply by 18 MW for its plants situated in Hamirgarh (Bhilwara district) and Bhanwaria Kalan (Begun, Chittorgarh district), both located in Rajasthan. The renewable power generated from the wind-solar hybrid project qualifies as captive consumption under the Electricity Act/Rules, enabling Nitin Spinners to self-consume cleaner and more sustainable energy, which is crucial for reducing carbon footprint and energy costs.

The acquisition is not categorized as a related party transaction, and it has been confirmed that neither the promoters nor promoter groups of Nitin Spinners have any interest in CGE II Hybrid Energy. This ensures that the transaction is conducted at arm’s length, maintaining transparency and corporate governance standards.

Financial and Transaction Details

The acquisition will be executed via a cash consideration payment made through an online banking system, with the total cost of acquisition valued at approximately Rs. 17.14 crore (Rs. 171,363,630). The shares acquired represent an 18.12% stake in the equity share capital of CGE II Hybrid Energy.

The company expects to complete the acquisition process on or before 31st August 2025, following all regulatory and compliance requirements.

Industry and Market Context

The renewable energy sector in India is witnessing rapid growth due to government initiatives to promote clean energy sources and reduce reliance on fossil fuels. Rajasthan, with its abundant sunlight and wind potential, is an ideal region for hybrid renewable projects combining solar and wind power generation.

Nitin Spinners’ move to increase its renewable energy capacity aligns with broader trends in the industry, where manufacturing companies are investing in captive renewable power projects to ensure energy security, reduce operational costs, and comply with environmental regulations.

Benefits to Nitin Spinners and Future Outlook

This acquisition will allow Nitin Spinners to:

• Secure a reliable, cost-effective, and sustainable power supply for its textile manufacturing plants.

• Strengthen its commitment to environmental sustainability by increasing its renewable energy usage.

• Leverage the benefits of captive power generation under Indian electricity regulations, potentially optimizing energy costs and ensuring uninterrupted power.

Looking ahead, the company may explore further renewable energy ventures to expand capacity and explore newer green technologies, reinforcing its position as a responsible and forward-looking industrial player.

In conclusion, Nitin Spinners Limited’s acquisition of an 18.12% stake in CGE II Hybrid Energy Private Limited marks a significant step toward integrating renewable energy into its operational framework. By focusing on wind-solar hybrid projects in Rajasthan, Nitin Spinners is not only contributing to a greener future but also enhancing its energy resilience and cost efficiency. This transaction is a strong indicator of how traditional manufacturing companies are embracing sustainable energy solutions to remain competitive and environmentally responsible in a changing global energy landscape.

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