Piramal Pharma Strengthens Sustainability Efforts with Strategic Renewable Energy Acquisition

Piramal Pharma Limited announced a significant step towards bolstering its commitment to sustainability on July 23, 2024. The company’s Board of Directors approved definitive agreements for acquiring up to a 15.76% equity stake in Clean Max Aero Private Limited (SPV), a renewable energy supplier, for a total consideration of ₹2.16 crore in cash.

Strategic Investment in Clean Energy

This acquisition positions Piramal Pharma as a “Captive User” of renewable energy. The SPV, established in July 2023, boasts a total solar power generation capacity of approximately 9.90 MWp within Maharashtra. Notably, 6 MWp of this capacity will be directly utilised by Piramal Pharma, significantly reducing its reliance on conventional energy sources and lowering its carbon footprint.

Benefits and Transparency

The investment is expected to be finalised within 7 to 8 months. Importantly, the press release clarifies that this acquisition does not constitute a related party transaction, ensuring transparency and adherence to corporate governance standards. Additionally, no government or regulatory approvals are necessary to proceed with the deal.

Aligning with Sustainability Goals

Piramal Pharma’s move towards renewable energy aligns with the growing focus on environmental responsibility within the pharmaceutical industry. By embracing clean energy solutions, the company demonstrates its commitment to sustainable practices throughout its operations. This strategic acquisition not only reduces the company’s environmental impact but also potentially leads to long-term cost savings through lower energy procurement expenses.

About Piramal Pharma Limited

Piramal Pharma Limited (PPL) is part of the Piramal group of companies. The company operates through 3 major segments: (1) Contract development and manufacturing organisations (CDMO), (2) Complex hospital generics (critical care), and (3) consumer healthcare (OTC). The company entered the Pharma space back in 1988 with the acquisition of Nicholas Laboratories and grew through a series of Mergers & Acquisitions and various organic initiatives.

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