Havells India Acquires 26% Stake in Kundan Solar for INR 5.63 Crores
Filing Summary
Havells India Limited has approved the acquisition of a 26% stake in Kundan Solar (Pali) Private Limited for INR 5.63 Crores. This transaction, approved by the Executive Committee of Havells’ Board on November 26, 2025, involves Kundan Solar, a Special Purpose Vehicle focused on solar power plant operations. The investment aligns with Havells’ strategy to reduce fossil fuel dependency and secure a long-term Power Purchase Agreement. The acquisition will be completed by June 30, 2026, with the solar plant expected to be operational by Q2 FY26-27.
Havells India Limited has announced the approval of acquiring a 26% stake in Kundan Solar (Pali) Private Limited. The decision was made by the Executive Committee of the Board of Directors during a meeting on November 26, 2025. Kundan Solar is a Special Purpose Vehicle established for developing, installing, operating, managing, and maintaining solar power plants. This acquisition is part of Havells’ strategic initiative to engage in renewable energy projects.
The financial terms of the acquisition involve a total investment of INR 5.63 Crores. The transaction will be executed entirely in cash. Havells plans to acquire the stake in multiple tranches, with payments linked to specific project milestones. The acquisition is structured to comply with the Electricity Laws, requiring Havells to hold a minimum of 26% shareholding to qualify as a captive consumer.
The operational scope of this acquisition includes the establishment of a 15 MWac solar power plant by Kundan Solar. Havells intends to enter into a long-term Power Purchase Agreement (PPA) for up to 25 years. This arrangement is expected to facilitate savings in power costs at Havells’ plant locations in Rajasthan. The payback period for the project is anticipated to be within 12 to 18 months from the commissioning date.
Kundan Solar is a subsidiary of Kundan Green Energy Private Limited, which is part of the Kundan Group. Kundan Green is engaged in renewable and sustainable power generation, distribution, and power trading. The promoters of Kundan Group are related to one of the promoters of Havells, but the promoter group of Havells does not have any direct interest in Kundan Solar.
The timeline for the completion of this acquisition is set for June 30, 2026. The solar power plant is expected to be commissioned by the second quarter of the fiscal year 2026-27. No governmental or regulatory approvals are required for this acquisition, facilitating a smoother transaction process.
Havells India Limited is a leading electrical equipment company in India, focusing on manufacturing and marketing a wide range of products, including industrial and domestic circuit protection devices, cables and wires, motors, fans, modular switches, home appliances, air conditioners, electric water heaters, and power capacitors. The company is committed to expanding its footprint in the renewable energy sector as part of its strategic growth initiatives.