Mahindra Group unveiled plans to invest INR 1200 crore in renewable energy projects in India, focusing on developing a 150 MW hybrid renewable energy (RE) project integrating solar and wind power. The initiative highlights Mahindra’s dedication to operating ‘Planet Positive’ businesses and transitioning towards sustainable energy solutions.
Strategic investment in renewable energy
Mahindra Susten, a prominent player in the renewable Independent Power Producer (IPP) sector within the Mahindra Group is set to spearhead the hybrid RE project. The project will feature a strategic partnership with the Ontario Teachers’ Pension Plan Board, a renowned global investor.
Market performance
Following the announcement, shares of Mahindra & Mahindra Ltd (M&M) experienced a marginal decline of 0.90% in trading, reflecting investor sentiment towards the company’s strategic diversification into renewable energy ventures.
Project details and environmental impact
The hybrid project will encompass 101 MW of wind capacity and 52 MW of solar capacity, generating an estimated 460 million kWh of clean energy annually. This energy production is anticipated to offset approximately 420,000 tonnes of CO2 emissions, contributing significantly to environmental conservation efforts.
Venturing into hybrid renewable energy
Mahindra Susten’s entry into the hybrid RE space marks a significant milestone, positioning the company as a pioneer in adopting innovative renewable energy solutions. The project, slated to be among Maharashtra’s largest co-located solar and wind hybrid initiatives, aims to supply clean energy to Commercial and Industrial (C&I) customers.
Local integration and value chain
The project underscores Mahindra’s commitment to domestic manufacturing, with over 80% of the components sourced locally. This integration fosters a robust domestic value chain, supporting indigenous manufacturing and job creation.
Executive insights
Dr Anish Shah, CEO & MD of Mahindra Group, reiterated the company’s dedication to sustainability and climate action. He emphasised the project’s alignment with Mahindra’s ethos of fostering ‘Planet Positive’ businesses and contributing to green energy transitions, while also highlighting its economic viability.
Impact on Mahindra’s business portfolio
Mahindra’s Automotive and Farm sectors have secured contracts within the project, reinforcing the company’s renewable energy commitment. With capacity allocations of 41.20 MW in wind and 25.90 MW in solar, the initiative is projected to boost Mahindra’s Renewable Energy (RE) share from 34% in FY23 to 60% in FY26.
Strategic alignment with business goals
Veejay Nakra, President of Mahindra’s Automotive Division, hailed the project as a strategic win-win for sustainability and business growth. As Mahindra expands its electric vehicle (EV) portfolio and green manufacturing initiatives, this investment ensures a reduction in carbon emissions, aligning with the company’s long-term sustainability objectives.