Emami Group has demerged its solar power assets from Emami Cement, a group company which plans to get listed soon, consolidating the renewable energy assets under Emami Power.
Enami Power, its solar business, plans to achieve 300 mw aggregate capacity in the coming days.
With the National Company Law Tribunal (NCLT) on Monday approving the demerger of solar power business of the cement company comprising a 10 mw plant located at Gujarat Solar Park in Patan and 3 mw plant located at Perunali in Tamil Nadu, Emami Cement will now be concentrating solely on its core business.
With three manufacturing plants and another upcoming plant aggregating 9.3 million tonne by the next year, Emami Cement has recently filed its draft red herring prospectus.
“Proposed demerger is being undertaken with a view to consolidate the power production business in Emami Power while allowing our company to focus on its cement manufacturing operations,” the cement company disclosed before approval of the proposal, which was filed in July.
“While NCLT has pursuant to its order dated July 23 dispensed with the requirement for obtaining approvals of the shareholders of our company and Emami Power, the demerger scheme remains subject to approval of the creditors of our company and Emami Power and approval of the NCLT,” the cement company’s prospectus said.
In FY18, Emami Cement’s revenues from the solar power sale was Rs 26.68 crore.
Emami Power has made a profit of around Rs.2.4 crores in fiscal 2018, will now have around 43 mw of capacity at Karnataka, Gujarat, Tamil Nadu and Uttarakhand with an aim to achieve capacity of 300 mw aggregate capacity in near future.
“EPL is participating in various tenders under state and central schemes of National Solar Mission besides going for acquisition route to achieve its goal of 300 mw in solar power,” the company said.
Emami Power has a 25-year-long power purchase agreement with Chamundeshwari Electricity Supply Corp for the Karnataka facility at a tariff of Rs 7.74/kWh and with Uttarakhand Power Corp for the Uttarakhand facility at a tariff of Rs 5.74/kWh.
“The 10 mw power plant in Karnataka has consistently performed better than the P90 plant load factor (PLF) estimates, recording an average PLF of 20.4% in FY18 (FY17: 20.8%). For the 20 mw Uttarakhand power plant, fiscal 2018 was the first year of operations. Although the average PLF at 15.44% in the last fiscal was lower than P90 level (23.53%) due to stabilisation issues, it was closer to P90 level in March and April 2018.” India Ratings said on Emami Power’s debt ratings.
WHERE THE WIND BLOWS
- 300 mw – Emami Power aggregate capacity plans to achieve
- 9.3 million tonne – capacity Emami Cement will have by next year
- Rs 26.68 crore – the company’s solar power sale in the last fiscal
- Emami Power which suffered a loss Rs 2.4 crore in fiscal 2018, will now have around 43 mw of capacity at Karnataka
- It has a 25-year-long PPA with Chamundeshwari Electricity Supply Corp for the Karnataka facility