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Wed, 28 Oct 2026
05:10:25 pm
Wed, 28 Oct 2026
05:10:25 pm
Synopsis
Relaxo Footwears Limited has approved an investment of up to ₹2.50 crore in a special purpose vehicle (SPV) promoted by CleanMax Enviro Energy Solutions to develop a group captive solar power project for its manufacturing facilities in Haryana. The company will acquire a 26% equity stake in the SPV, marking a strategic step toward renewable energy adoption, cost optimization, and long-term sustainability. The move aligns with growing corporate efforts to reduce dependence on conventional power sources and improve environmental performance.
Relaxo Footwears has announced a strategic investment of up to ₹2.50 crore in a special purpose vehicle that will establish a group captive solar power project dedicated to supplying renewable electricity to the company's manufacturing plants in Haryana. The investment reflects the footwear giant's focus on reducing energy costs, improving sustainability metrics, and strengthening operational efficiency through clean energy adoption.
The Board of Directors approved the investment during its meeting held on May 28, 2026, authorizing the company to subscribe to equity shares of the proposed SPV, which will be incorporated by CleanMax Enviro Energy Solutions Limited and its affiliates.
| Metric | Details |
|---|---|
| Company | Relaxo Footwears Limited |
| Investment Amount | Up to ₹2.50 Crore |
| Stake Acquired | 26% |
| Project Type | Group Captive Solar Power Project |
| Location | Haryana |
| SPV Promoter | CleanMax Enviro Energy Solutions Ltd |
| Sector | Renewable Energy |
| Consideration | Cash |
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| Particulars | Details |
|---|---|
| Investment Size | Up to ₹2.50 Crore |
| Equity Stake | Approximately 26% |
| Consideration | Cash |
| Project Type | Group Captive Solar Power |
| Location | Haryana |
| SPV Status | Proposed Entity |
| Industry | Renewable Energy |
The acquisition of a 26% stake will classify the SPV as an associate company of Relaxo Footwears under applicable corporate regulations.
The proposed project will operate under the group captive power framework established under the Electricity Act, 2003. Under this structure, participating corporate consumers own a portion of the generating asset and receive electricity directly from the project for their own consumption.
This model has become increasingly popular among industrial companies seeking to reduce long-term energy expenses while meeting sustainability commitments.
| Advantage | Business Impact |
|---|---|
| Lower Power Costs | Improved Operating Margins |
| Renewable Energy Usage | ESG Improvement |
| Energy Security | Stable Power Supply |
| Reduced Carbon Footprint | Sustainability Benefits |
| Long-Term Cost Visibility | Better Financial Planning |
For energy-intensive manufacturing operations, captive solar power can provide significant savings compared to traditional grid electricity over the project's lifecycle.
Relaxo Footwears operates multiple manufacturing facilities that require substantial power consumption for production activities. Rising electricity costs and increasing focus on environmental sustainability have encouraged many manufacturing companies to adopt renewable energy solutions.
The investment is expected to help the company:
As renewable energy becomes increasingly competitive, captive solar projects are emerging as an attractive long-term strategic investment for industrial companies.
The project will be developed by CleanMax Enviro Energy Solutions Limited, one of India's leading renewable energy providers focused on commercial and industrial customers.
CleanMax has established a strong presence in:
The partnership allows Relaxo to leverage specialized renewable energy expertise while maintaining ownership participation through the SPV structure.
The announcement reflects a broader trend across Indian industry, where companies are increasingly investing in captive renewable energy assets to improve cost competitiveness and meet sustainability goals.
| Driver | Impact |
|---|---|
| Rising Grid Power Costs | Strong |
| ESG Compliance | Increasing |
| Carbon Reduction Goals | High Priority |
| Energy Security | Important |
| Regulatory Support | Positive |
| Investor Expectations | Growing |
Several large manufacturing companies across sectors such as automobiles, cement, steel, textiles, FMCG, and consumer goods have adopted similar renewable energy models in recent years.
Energy costs represent an important component of manufacturing expenses. While the immediate financial impact of a ₹2.50 crore investment may appear modest, the strategic benefits could extend over several decades through lower electricity costs and improved operational resilience.
The project is expected to support Relaxo's Haryana manufacturing facilities, which play a critical role in the company's production network.
The investment size remains relatively small compared to Relaxo Footwears' overall business scale. However, investors often view renewable energy initiatives positively because they contribute to operational efficiency improvements and strengthen long-term sustainability frameworks.
The transaction will be funded entirely through cash consideration, reflecting a disciplined capital allocation approach.
| Period | Return |
|---|---|
| 1 Day | +0.17% |
| 5 Days | +3.87% |
| 1 Month | +0.27% |
| 6 Months | -26.77% |
| 1 Year | -31.46% |
| 5 Years | -72.59% |
The stock has faced pressure in recent years amid broader challenges within the consumer and footwear segments, making operational efficiency initiatives increasingly important.
The proposed solar power investment highlights Relaxo Footwears' commitment to integrating sustainability with business operations. As energy costs remain a significant consideration for manufacturers, captive renewable power projects can provide both financial and environmental benefits.
The partnership with CleanMax positions the company to participate in India's accelerating clean energy transition while potentially generating long-term savings across its manufacturing operations. Similar renewable energy investments are likely to become increasingly common among consumer and manufacturing companies as ESG considerations and energy economics continue to evolve.
Relaxo Footwears' ₹2.50 crore investment in a group captive solar power project may be relatively small in monetary terms, but it represents a strategically important step toward energy cost optimization and sustainable manufacturing. By securing a 26% stake in the CleanMax-promoted SPV, the company gains direct access to renewable energy generation while strengthening its ESG profile and reducing exposure to conventional power costs.
The initiative aligns with a broader corporate trend toward clean energy adoption and demonstrates management's focus on long-term operational efficiency. While the investment is unlikely to materially impact near-term earnings, it supports sustainable value creation and positions the company to benefit from India's growing renewable energy ecosystem.
The company has approved an investment of up to ₹2.50 crore in a solar power SPV.
Relaxo Footwears will hold approximately 26% equity ownership in the SPV.
The SPV will be promoted by CleanMax Enviro Energy Solutions Limited and its affiliates.
The project will develop a group captive solar power plant for Relaxo's manufacturing facilities in Haryana.
The investment will be made through cash consideration.
To reduce energy costs, improve sustainability, and support renewable energy usage.
Yes, due to the 26% ownership stake, the SPV will be classified as an associate entity.
The project will serve manufacturing facilities located in Haryana.
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