South India Paper Mills buys 26% of a Hero Group wind power SPV
The paper manufacturer will secure 11.6 million units of wind power annually through a group captive deal to lower energy costs in Karnataka.
What's new
- South India Paper Mills is buying a 26% stake in Clean Wind Power (Manvi) for ₹14 lakhs.
- The SPV is promoted by Hero Rooftop Energy.
- The deal secures 11.6 million units of wind power annually for Karnataka operations.
Why this matters
Paper manufacturing is energy-intensive, making power costs a primary margin lever. Partnering with a Hero Group entity for captive power provides a predictable, long-term energy source that should stabilize operational costs.
What we're watching
- Completion of the share acquisition in July.
- The start of power supply scheduled for August 2026.
- Any impact on power costs in the FY27 results.
The full read
South India Paper Mills is moving to secure its energy supply by acquiring a 26% stake in Clean Wind Power (Manvi) Private Limited, an SPV promoted by Hero Rooftop Energy. The cash investment is modest at ₹14 lakhs.
For a firm with a market capitalization of ₹177 crore, this group captive model is a material step toward stabilizing energy costs in an energy-intensive industry that has historically been vulnerable to grid price volatility. By transitioning to renewable power through a partnership with the Hero Group, the company gains both operational stability and an improved ESG profile. The acquisition is slated for July, with power delivery expected to start in August 2026.
It is a necessary hedge.
Questions answered
- How much is South India Paper Mills investing in this project?
- The company is investing ₹14 lakhs to acquire a 26% stake in the special purpose vehicle.
- What does the company gain from this agreement?
- It secures 11.6 million units of wind power annually through a group captive structure, which helps manage energy costs for its Karnataka manufacturing facilities.
- Who is the partner in this power project?
- The project is a special purpose vehicle promoted by Hero Rooftop Energy.
- When will the power supply begin?
- Energy supply is tentatively scheduled to commence in August 2026, following the share acquisition in July.