Prism Johnson to Invest ₹40 Crore in 49.5 MW Captive Wind Power Project
Prism Johnson Limited has approved an investment of up to ₹40 crore in KUS Renewable Private Limited, a special purpose vehicle that plans to develop a 49.5 MW captive wind power project in Madhya Pradesh.
The project is intended to supply dedicated renewable power to Prism Johnson’s cement plant located at Satna, Madhya Pradesh.
The company said the initiative is aimed at sourcing cheaper renewable power, reducing cement production costs and improving energy efficiency.
Prism Johnson Approves ₹40 Crore Investment
The company’s Board of Directors approved an investment of not exceeding ₹40 crore in the equity and/or redeemable preference share capital of KUS Renewable.
Prism Johnson will acquire equity shares carrying at least 26.5% of the voting equity share capital of KUS, apart from redeemable preference shares.
The investment will be made in cash through normal banking channels.
The proposed investment is expected to be completed by October 31, 2027.
49.5 MW Captive Wind Project in Madhya Pradesh
KUS Renewable plans to set up a 49.5 MW captive wind power project at Tehsil Alot, District Ratlam, Madhya Pradesh.
The renewable electricity generated by the project will be supplied to Prism Johnson’s cement manufacturing facility at Satna under a proposed Power Purchase Agreement between Prism Johnson and KUS.
KUS Renewable was incorporated on September 26, 2024, by Purvah Green Power Private Limited (PGPPL), a subsidiary of CESC Limited.
Why Prism Johnson Is Investing in the Project
Prism Johnson said the primary objective is to purchase lower-cost renewable power, which can help reduce the company’s cement production costs.
The project is also expected to support the company’s sustainability initiatives by:
- Increasing renewable energy utilisation
- Improving energy efficiency
- Optimising resource usage
- Supporting the company’s ESG objectives
For a cement manufacturer, energy is a significant component of operating costs. The captive renewable power arrangement therefore has a potential cost-efficiency angle in addition to its sustainability benefits.
No Related Party Transaction
Prism Johnson stated that the proposed acquisition does not constitute a related party transaction.
The company also said that its promoter, promoter group and group companies have no interest in KUS Renewable.
No governmental or regulatory approvals are currently required for the proposed acquisition, according to the disclosure.
KUS Renewable Is Yet to Start Operations
KUS Renewable is a newly established special purpose vehicle and has not yet commenced business operations.
As a result, its turnover was nil in the preceding two financial years.
The company has been established specifically to develop the captive wind power project.
The project’s development and eventual power supply will therefore be important milestones to monitor.
What Investors Should Watch
For Prism Johnson, the key potential benefit from the project is not an immediate revenue increase but lower and potentially more predictable power costs for its cement operations.
Investors can track:
- Progress in development of the 49.5 MW wind project
- Completion of Prism Johnson’s investment
- Finalisation of the Power Purchase Agreement
- Project commissioning timeline
- Actual renewable power utilisation
- Impact on cement production costs
- Contribution towards the company’s renewable-energy and ESG targets
The ₹40 crore investment should also be viewed separately from the eventual economic benefits of the power project. The disclosure does not quantify the expected annual savings or return from the captive wind arrangement.
Bottom Line
Prism Johnson has approved up to ₹40 crore of investment in KUS Renewable to participate in a 49.5 MW captive wind power project in Ratlam, Madhya Pradesh.
The project will supply dedicated renewable power to Prism Johnson’s Satna cement plant. The company expects the arrangement to help lower power costs while increasing renewable energy usage and supporting its ESG objectives.
The next important milestones will be the investment completion, the Power Purchase Agreement, and the development of the wind project, with the company targeting completion of the investment by October 31, 2027.
Disclaimer: This article is based on the company’s stock-exchange disclosure. The project is proposed, and the disclosure does not provide quantified annual savings or profitability estimates. This article is for informational purposes only and should not be considered investment advice.
