Synergy Green Industries: Solar Project Commissioning and Land Acquisition Update

On April 4, 2024, Synergy Green Industries disclosed two important material developments of the company in an exchange filing. These two developments are related to the implementation of the solar project at Malegaon, Nasik and the acquisition of land for expansion.

Synergy Green Industries Limited informed the stock exchanges that the company has successfully commissioned 2 MW of captive solar projects. The company stated that this is estimated to take care of the electricity requirement for 3,000 MT of production, which is about 10% of the present capacity.

The company also added that a further 8 MW installations are planned during FY 2024-25. These installations will help them achieve decarbonisation goals, reduce electricity costs, and hedge against future power tariff escalations. Currently, they are spending around 8% on power costs, and with the completion of 10 MW installations, it is estimated that these costs will be reduced to 6% (at PBDIT levels).

However, Synergy Green Industries also mentioned that the information mentioned above is management’s estimate of savings based on the supplier data of solar power generation and historical power consumption for production. As such, the members and investors are advised to take note of it before making any decisions on investments.

Regarding another significant development at the company, they stated that they have finalised a land acquisition deal at MIDC Kagal, Kolhapur (which is 5 Km from present facilities). Land transfer formalities are estimated to take around 2 to 3 months period. This land acquisition will help them expand the foundry capacity from 30,000 MT/Annum to 45,000 MT/Annum and also establish in-house Machining facilities.

Synergy Green Industries added, “The information is based on signing the agreement to acquire land, and the final transfer of the same is subject to all statutory agencies approval.”

On April 4, 2024, the Synergy Green Industries share price opened at ₹364.00, touching the day’s high at ₹364.00, as of 1:20 PM on the NSE.

About Synergy Green Industries Limited

Synergy Green Industries is one of the leading state-of-the-art foundries in India. The company is installed with the largest semi-automated fast loop moulding line in the country for large-size castings. The company produces steel castings for wind turbines, wind gearboxes, SG iron, Grey Iron and more. The company belongs to Shirgaokar Group.

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