Pritika Group Signs 25-Year Solar Power MoU, Targets ₹110 Crore in Savings
Pritika Auto Industries Limited announced on August 27, 2026, that its subsidiary, Pritika Engineering Components Limited, has signed a Memorandum of Understanding (MoU) with Spark Grid Private Limited for the long-term supply of solar power.
The proposed arrangement will run for 25 years and is aimed at reducing the group’s long-term energy costs while increasing the use of renewable energy across its operations.
Pritika Group Eyes ₹110 Crore Long-Term Savings
Under the proposed solar power arrangement, the Pritika Group expects to generate estimated savings of approximately ₹110 crore over the 25-year tenure.
Of the projected savings:
- Pritika Engineering Components Limited: approximately ₹70 crore
- Pritika Auto Industries Limited: balance savings of approximately ₹40 crore
The company said the arrangement is expected to provide greater visibility on energy costs and strengthen the group’s cost competitiveness over the long term.
26% Stake Proposed in Solar Project SPV
As part of the proposed arrangement, a Special Purpose Vehicle (SPV) will be established for the solar power project.
Pritika Engineering Components Limited is expected to hold a 26% equity stake in the SPV on behalf of the Pritika Group, subject to completion of the required approvals and documentation.
The proposed structure will allow the group to participate in the long-term renewable energy project while supporting its broader sustainability objectives.
Focus on Lower Energy Costs and Renewable Power
The solar power agreement is part of Pritika Group’s efforts to improve operational efficiency and reduce long-term energy expenses.
By entering into a long-duration renewable power arrangement, the group expects to achieve better visibility over its electricity costs while increasing the contribution of renewable energy to its overall power requirements.
The initiative also supports the group’s sustainability agenda and its move towards cleaner sources of energy.
Management Commentary
Harpreet Singh Nibber, Chairman & Managing Director, Pritika Auto Industries Limited, said the long-term solar power arrangement represents an important step towards improving energy efficiency and creating sustainable cost advantages across the group.
According to him, the competitive tariff over the 25 years is expected to generate savings of around ₹110 crore for the group, including approximately ₹70 crore for Pritika Engineering Components Limited.
He also highlighted that the proposed SPV structure, with Pritika Engineering Components holding a 26% equity stake on behalf of the group, will enable Pritika to participate in the long-term renewable energy opportunity while supporting its sustainability objectives.
Pritika Auto Industries: Automotive Component Manufacturing
Pritika Auto Industries is the flagship company of the Pritika Group of Industries, which was established in 1974.
The company specialises in machined castings and automotive components, primarily serving the tractor and commercial vehicle segments.
Pritika operates manufacturing facilities in Dera Bassi, Hoshiarpur and Mohali in Punjab, and Tahliwal in Himachal Pradesh, with an aggregate capacity of more than 72,000 metric tonnes per annum.
Its product portfolio includes:
- Axle housings
- Wheel housings
- Hydraulic lift housings
- End covers
- Differential carriers
- Brake housings
- Cylinder blocks
- Crankcases
The company supplies components to several automotive and tractor OEMs, including M&M Swaraj, Swaraj Engines, TAFE, Escorts, SML, Mahindra, TMTL, Ashok Leyland, New Holland Tractors India and Brakes India, among others.
Pritika Engineering Components’ Manufacturing Capabilities
Pritika Engineering Components Limited is a subsidiary of Pritika Auto Industries and focuses on precision-machined components for the tractor and automotive industries.
The company operates a manufacturing facility in Hoshiarpur, Punjab, with capabilities spanning foundry operations, machining and component manufacturing.
Its facility includes a mechanised foundry equipped with DISA ARPA 900 and 450 systems, induction furnaces and cold core box machines, along with CNC horizontal and vertical machining centres and CNC vertical turning lathes.
The company has also developed Lost Foam Casting Technology, which can support the production of complex cast components with improved dimensional accuracy, lower machining requirements and better material utilisation.
Pritika Engineering Components is certified under IATF 16949:2016 and manufactures products such as machined transmission housings, gearboxes, front axle supports, lift housings and front axle beam housings.
Key Takeaway for Investors
The proposed 25-year solar power arrangement is strategically important for Pritika Group as it combines long-term energy cost savings with increased renewable energy adoption.
The estimated ₹110 crore savings, proposed 26% stake in the solar SPV, and long-term visibility over energy costs could support the group’s efforts to improve operating efficiency and competitiveness.
However, the arrangement remains subject to applicable approvals and documentation. The actual benefits will depend on the implementation of the proposed solar project and the terms of the final arrangement.
Disclaimer: This article is based on information provided by Pritika Auto Industries Limited in its media release dated August 27, 2026. It is intended for informational purposes only and should not be considered investment advice or a recommendation to buy or sell any security.