Noida-based automotive component manufacturer Samvardhana Motherson International has signed an agreement with HR Dhauliganga, a special-purpose vehicle of Hinduja Renewables Energy, to procure power from a 50 MW captive solar project in Tamil Nadu.

Samvardhana, along with its subsidiaries, will acquire a 28.15% equity stake in HR Dhauliganga through an investment of up to ₹141.3 million (~$1.63 million) in one or more tranches.  The company will hold 18.35% of the equity on its own.

The shares will be issued upon execution of definitive agreements and completion of conditions precedent. Hinduja will continue to hold a majority equity stake in HR Dhauliganga.

The investment is expected to be completed in the second quarter of the current financial year.

HR Dhauliganga was incorporated on December 10, 2024. It reported nil revenue, negative earnings before interest, taxes, depreciation, and amortization of ₹0.59 million (~$6,813), and a net worth of negative ₹0.49 million (~$5,658) as of March 31, 2025.

This agreement is part of the company’s plan to reduce its direct Scope 1 and 2 emissions in line with its target of achieving carbon net zero across its global operations by 2040.

In September last year, Samvardhana Motherson, through its wholly-owned subsidiary MSSL Consolidated, acquired 3.64 million Class A shares in Israel-based e-mobility company REE Automotive for $4.122 per share, resulting in a total investment of $15 million.

Mercom has written about how energy-intensive industries in India are switching to clean energy through the open access model to meet their clean energy mandates and lower their power bills. Industries such as iron and steel, cement, automobiles, petrochemicals, chemicals, and other metals drive demand for open access solar to optimize costs and meet sustainability goals.

RE100 companies in India raised their share of renewable electricity from 23% in 2023 to 39% in 2024, aligning with national efforts to promote rooftop solar, hybrid energy projects, and solar parks across multiple states.