Rudra Global Infra Products Ltd. will invest about ₹190 crore in setting up a captive 30-megawatt solar project in Gujarat as part of the initiatives aimed at achieving efficiency in energy consumption and reducing operation costs with the help of renewable energy sources. The Solar Plant is likely to be operational by January 2025, which forms a crucial milestone toward its sustainability and growth agenda.
Project Details and Financial Structure
The 30-megawatt solar project would be developed in phases. The capital expenditure for the first phase would be Rs 190 crore. Of this, 80% of funding was availed from financial institutions, which is repayable over a five-year period. The rest 20% of the investment would come from Rudra Global Infra Products’ internal resources. This will give the firm an opportunity to diffuse the investment burden and, at the same time, ensure that the project will be viable to finance and also align with the long-term growth objective.
Impact on Operations and Production
The new plant will mainly utilise solar power for the energy requirements of billet and TMT bar manufacturing operations of Rudra Global. This, in turn, is most likely to substantially improve the capacity utilisation of its steel melting shop division from 33 per cent at present to 50 per cent. This increased capacity utilization will also support the production of 1 lakh tonnes of billets and 2.1 lakh tonnes of TMT bars annually, thereby increasing production and market reach.
Economic and Environmental Benefits
It is reduced dependence on conventional sources of energy that Rudra Global targets through switching to solar energy, which shall help lessen operational costs and improve environmental sustainability. The project will break even within two years from the date of commercial operations and contribute to the company’s financial performance thereafter. Rudra Global expects this initiative to drive its annual turnover beyond Rs 1,000 crore in three years and position the firm for huge growth in an industry marked by fierce competition.
This 30-megawatt captive solar project represents Rudra Global Infra Products Ltd.’s commitment to growth with sustainability and efficiency in its operations. Such integration will increase production capability and reduce costs as well as impacts on the environment. With the solar plant likely to be operational by January 2025, Rudra Global shall be well placed to ride this trend in a bid to realize its aggressive growth plans and further cement its position in the manufacture of value-added steels.
Source: Rudra Global Infra Products Ltd. disclosure
Credit: Rudra Global Infra Products Ltd.