Nestlé India has entered into a Share Subscription and Shareholders’ Agreement to acquire a 26% equity stake in Radiance KA Sunshine Seven Private Limited. This move aims to establish a captive renewable energy power plant, aligning with Nestlé’s commitment to increasing renewable energy usage and supporting its sustainability objectives. The acquisition also ensures Nestlé meets ‘captive user’ requirements under Indian electricity laws.
Nestlé India Strengthens Renewable Energy Commitment
Nestlé India Limited has announced the acquisition of a 26% equity stake in Radiance KA Sunshine Seven Private Limited (Radiance KA), a company focused on renewable energy generation. This strategic investment is intended to establish a captive renewable energy power plant, crucial for meeting the energy requirements of one of Nestlé India’s manufacturing facilities.
Strategic Alignment with Sustainability Goals
The initiative is a direct reflection of Nestlé India’s ongoing commitment to significantly increase the share of renewable energy within its operational framework. This acquisition not only supports the company’s broader sustainability objectives but also ensures compliance with the ‘captive user’ provisions stipulated by Indian electricity laws and regulations. Radiance KA is engaged in the generation and sale of renewable energy, operating a solar power plant with a capacity of 17.5 MW AC / 26.25 MWp DC in Koppal, Karnataka.
Financial and Transaction Details
Nestlé India will be subscribing to 76,12,500 equity shares of Radiance KA at par, with each share having a face value of ₹10. The total aggregate subscription amount for this acquisition is ₹7,61,25,000 (Rupees seven crore sixty-one lakh twenty-five thousand only). The turnover of Radiance KA for the financial year ended March 31, 2026, was reported at ₹15.8 crore. The completion of this acquisition is expected within 30 days from the agreement execution or by another mutually agreed date.
Source: BSE
