Vardhman Textiles Limited (VTL), one of India’s leading integrated textile manufacturers, has officially announced an amendment to its previously executed Share Subscription and Shareholders' Agreement (SSSHA) with Renew Green Energy Solutions Private Limited and Renew Green (MPR One) Private Limited. The original agreement, dated 2nd May 2023, involved the setup of an 11.5 MW Wind-Solar Hybrid Power Plant in the state of Madhya Pradesh under the Captive Power Rules.

In a regulatory filing made on June 14, 2025, and in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Vardhman Textiles Limited informed the stock exchanges — BSE Limited (Scrip Code: 502986) and NSE (Symbol: VTL) — about the formal execution of an Amended Share Subscription and Shareholders’ Agreement. This amendment, reviewed and approved by the Committee of Directors (Renewable Energy), primarily addresses a change in the location of the hybrid power plant within Madhya Pradesh, while keeping other essential commercial terms largely unchanged.

Background of the Original Agreement

In May 2023, Vardhman Textiles entered into an agreement with Renew Green entities to promote sustainability and cost-efficiency by establishing an 11.5 MW hybrid (wind + solar) renewable energy project. This initiative was designed to provide exclusive power supply to Vardhman Textiles under the Captive Consumption Model, allowing the company to meet internal energy demands while advancing its green energy goals.

Key Highlights of the Amended Agreement

• Execution Date: June 14, 2025

• Approval By: Committee of Directors (Renewable Energy), Vardhman Textiles

• Meeting Timings: Started at 9:30 AM and concluded at 10:00 AM

• Parties Involved:

  • Vardhman Textiles Limited

  • Renew Green Energy Solutions Private Limited

  • Renew Green (MPR One) Private Limited

• Amendment Focus: Change in the location of the power plant, remaining within the geographical boundaries of Madhya Pradesh

• Nature of Supply: Captive, exclusive to Vardhman Textiles Limited

Strategic Significance for Vardhman Textiles

This amendment underscores Vardhman’s continued focus on clean energy initiatives and its efforts to navigate dynamic logistical or regulatory circumstances that may have prompted a shift in the plant’s site. With the core project fundamentals remaining intact, the company reaffirms its long-term commitment to energy sustainability and operational efficiency.

By shifting to renewable hybrid power models, the company expects to:

• Reduce reliance on fossil fuels

• Stabilize energy costs over the long term

• Enhance ESG (Environmental, Social, and Governance) compliance

• Meet corporate sustainability goals aligned with India’s renewable energy mission

Impact on Operations and Stakeholders

While the amendment signifies a logistical realignment, it does not affect the timeline or objective of the original project. The power generated will still be used exclusively by Vardhman Textiles, ensuring uninterrupted captive power supply once the project becomes operational. No financial restructuring or equity dilution has been indicated in the latest communication.

Furthermore, the collaboration with Renew Green, a reputed name in India’s renewable infrastructure space, gives the project additional credibility in terms of execution, timelines, and regulatory compliance.

Investor Communication and Transparency

As mandated by SEBI, Vardhman Textiles has ensured timely disclosure to the stock exchanges. The communication, dated June 14, 2025, was sent to both BSE Limited and National Stock Exchange of India Limited, ensuring that shareholders and stakeholders are well-informed. The letter was signed by Mr. Sanjay Gupta, Company Secretary of Vardhman Textiles Limited.

Such disclosures reaffirm the company’s commitment to transparent governance practices and build investor confidence in the company’s strategic decisions related to long-term sustainability and operational modernization.

Outlook Ahead

This update reflects the ongoing momentum within Vardhman Textiles to integrate renewable energy solutions into its manufacturing processes. With an amended agreement now in place, the company is expected to continue with the construction and commissioning of the wind-solar hybrid power plant, adapting to the newly finalized site within Madhya Pradesh.

No delays or cost escalations have been indicated, and the company is expected to issue further updates as construction progresses. This step forward not only strengthens its green credentials but also aligns with global textile industry trends, where sustainable production practices are becoming critical to brand value and international partnerships.

In summary, Vardhman Textiles Limited’s strategic move to amend its agreement ensures project feasibility while maintaining alignment with its original sustainability objectives, reaffirming its vision of a greener and more resilient textile future.

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