Mumbai, Sept 15, 2024: Orkla India, the parent company of MTR and Eastern, has partnered with CleanMax, a Brookfield backed company, to run its factories based out of Karnataka on 100% renewable energy.
The partnership solidify Orkla India's sustainability goals and accelerate its journey towards net-zero emissions. The partnership involves a 25-year power purchase agreement (PPA) for the generation and supply of renewable energy from a 6.6 MWp Solar Captive Power Project located in Jagaluru, Karnataka.
With this partnership, Orkla India factories based out of Karnataka will run on 100% renewable energy. The project is structured under a Special Purpose Vehicle (SPV), with Orkla India holding a 26% equity stake and CleanMax retaining the remaining 74%, the company said in a statement.
Under this arrangement, CleanMax will manage the energy generation, operation, and maintenance of the solar plant, ensuring optimal performance throughout the 25-year term.
This 6.6MW plant will provide 10 million KWh units per annum which is equivalent to the reduction of 7500 tons of CO2 emission annually which corresponds to planting 1.3 lakh trees annually. This initiative will significantly reduce Orkla India's carbon footprint, with all its manufacturing units in Karnataka achieving net-zero upon complete implementation.
Niklas Stoltz, Director, Sustainability, said, “Orkla India’s partnership with CleanMax is about powering change. We want to set a new standard for sustainable manufacturing in India's FMCG sector. With this partnership, Orkla India factories based out of Karnataka will run on 100% renewable electricity and at a pan India level 70% of our electricity consumption will be from renewable sources."
Kuldeep Jain, Founder and Managing Director, CleanMax said, "Our journey with Orkla since 2018 has been exciting, and I’m glad to expand this partnership further. We’re focused on enabling Orkla's shift to clean energy with solutions that align with their broader sustainability and net-zero goals. Together, we’re making a significant impact on reducing carbon emissions and advancing a more sustainable future."
