Nandan Denim Limited, a Gujarat-based textile manufacturer, has approved an agreement to acquire a 6.1% equity stake in Opera Vayu (Narmada) Private Limited, a special purpose vehicle in the wind and solar power sector, for about Rs. 4 crore (US $429,000).
This move reflects the growing adoption of renewable energy projects by textile companies, as they seek to reduce power costs, improve energy efficiency, and enhance long-term sustainability amid rising energy expenses.
For example, solar power can be generated at an effective cost of Rs 2 (US $0.022) to Rs 3 (US $0.032) per unit over its lifespan, resulting in long-term energy cost reductions of 70%–80%.
The arrangement guarantees access to competitively priced green energy for 25 years, backed by a captive power framework.
The SPV operates a group captive renewable energy power plant with wind and solar capacity. Through this acquisition, Nandan Denim will secure 4.3 MW of power to supply its Bareja plant.
Additionally, the company will provide an irrevocable bank guarantee of Rs 1.90 crore (US $204,000) to secure short-term billing obligations. The transaction is expected to be completed by June 30, 2026.
Nandan Denim, part of the Chiripal Group claims to be India’s leading and world’s fourth largest integrated denim fabric maker, and is currently engaged in manufacturing of denim fabric, shirting fabric and yarn. It exports to more than 28 countries and caters to international brands like Polo, Ralph Lauren, Calvin Klein, Target, Armani Exchange, Tommy Hilfiger and Ann Taylor.
The company has reported a significant increase in revenue to approximately Rs 3,546.7 crore (US $371 million) for the fiscal year ending March 2025, reflecting a 76.4% year-on-year growth.
