With the National Company Law Tribunal (NCLT) approving the demerger, all of Emami Cement’s solar power business assets and properties, including a 10 MW grid connected plant in Gujarat and a 3 MW plant in Tamil Nadu, will be transferred to Emami Power.
Emami Power aims to achieve over 300 MW of solar power capacity over the next three years. It has an 11 MW solar power project in the state of Karnataka, and a 22.5 MW project in Uttarakhand. Going further, it aims to develop more solar power projects in the various states of India. It has purchased land in Jodhpur district of Rajasthan to set up future projects under either central or state schemes, for instance.
The consolidation of its solar business will help Emami Power to cater to additional volumes and increase its footprint across India. At the same time, Emami Cement will be able to manage its core cement business more effectively. The move is aimed at enhancing the ability to deal with regulatory challenges, long-term growth, increasing profitability, and consolidating the financial, management and operational resources.
For the year ended March 31, 2018, Emami Power had a revenue of Rs 326.81 million, with net profit of Rs 23.6 million.