Sangam (India) Invests ₹114.2 Million in CGE II Hybrid Energy, Secures Captive Renewable Power Access

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Sangam (India) Ltd has approved a ₹114.2 million acquisition in CGE II Hybrid Energy Pvt Ltd and signed a Power Consumption Agreement to secure up to 12 MW of captive renewable energy. The move supports Sangam’s sustainability goals and operational efficiency across its textile manufacturing units in Rajasthan.

Sangam (India) Ltd, a leading textile manufacturer, has taken a strategic step toward energy sustainability by acquiring a stake worth ₹114.2 million in CGE II Hybrid Energy Pvt Ltd, a subsidiary of Continuum Green Energy. The company also approved a Power Consumption Agreement to source captive renewable energy for its manufacturing operations in Rajasthan.

Key Highlights:

Investment Details: Sangam’s Investment and Borrowing Committee sanctioned the acquisition of equity in CGE II Hybrid Energy Pvt Ltd for ₹114.2 million, formalized through a Share Purchase and Shareholders Agreement.

Power Agreement Scope: The company entered into a Power Consumption Agreement with CGE II Hybrid Energy to access up to 12 MW of renewable energy under captive status. This energy will be utilized across Sangam’s units in Village Atun, Sareri, and Billiya Kalan in Bhilwara district.

Strategic Rationale: The move aligns with Sangam’s long-term goals of reducing carbon footprint, lowering energy costs, and enhancing operational stability. It also supports India’s broader push toward industrial decarbonization.

Partner Profile: CGE II Hybrid Energy Pvt Ltd, incorporated in December 2021, is a subsidiary of Continuum Green Energy, a major player in India’s renewable energy sector. The firm specializes in hybrid wind-solar energy solutions.

Operational Impact: The captive power arrangement is expected to improve energy reliability, reduce dependence on grid electricity, and contribute to cost savings over the long term.

Governance Note: The agreements were approved in accordance with SEBI’s Listing Obligations and Disclosure Requirements, ensuring transparency and regulatory compliance.

Notable Updates:

Sangam (India) has been expanding its sustainable textile portfolio, including recycled yarns and eco-friendly fabrics.

The company is also investing in automation and digitalization to enhance manufacturing efficiency and product traceability.

With this strategic energy partnership, Sangam (India) is reinforcing its commitment to ESG principles while securing long-term energy security for its operations.

Sources: Business Upturn, ScanX News

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