Apollo Tyres on Thursday said it has invested ₹9.3 crore in CSE Deccan Solar, a subsidiary of Cleantech Solar, for a 27.2 per cent equity, to get a guaranteed supply of 40 million units of electricity per annum for its Chennai facility.
Considering that solar power gets produced only for few hours every day, and there is no storage facility available, the company opted for an offtake of an optimum quantity, which is about 20 per cent of the total requirements in Chennai.
Increasing share of renewables
Taking forward its long-term commitment to sustainability, which is also one of the key pillars of the company’s five-year vision, the leading tyre maker, has ensured green power for its largest manufacturing facility in Chennai. This will increase the share of renewable energy to more than 30 per cent of the total for this manufacturing facility, the company said in a statement.
“This investment to secure solar power for our Chennai facility, is one of the several initiatives that we are undertaking towards a sustainable future. The solar power that we are securing with this investment, will help us become self-sufficient for our power requirements for critical equipment, and strengthen our commitment towards reduction of carbon emissions,” Sunam Sarkar, President and Chief Business Officer, Apollo Tyres, said.
Considering that the rate of solar power is fixed for the next two decades in India, and is currently lower than the per unit rate of State Electricity Board, the company is also looking at cost savings through this deal with cleantech solar. The supply of solar power to Apollo Tyres’ Chennai facility is likely to begin in July this year, he said.
Apollo Tyres has an installed capacity to produce around 900 metric tonnes of tyres per day in Chennai, which includes the passenger vehicle tyres and light, medium and heavy commercial vehicle tyres, the company added.