Henkel Adhesives India has entered into a captive renewable energy arrangement with CleanMax, a Brookfield-backed company, aimed at accelerating its transition to carbon-neutral manufacturing processes.
This deal involved a captive power purchase agreement in Maharashtra executed between Henkel Adhesives India and a special purpose vehicle (SPV) created by CleanMax to source solar energy. Additionally, Henkel has entered into a share purchase agreement to acquire 26% of the equity shares of the SPV from CleanMax, in accordance with Indian electricity laws.
Argus Partners advised Henkel Adhesives India on this arrangement.
The transaction team consisted of Rachika Agrawal Sahay (Partner), Siddhant Satapathy (Principal Associate), Mrinal Mishra (Senior Associate), and Govind Sharma (Associate).
The agreement between Henkel Adhesives India and CleanMax represents a significant step toward enhancing solar power utilization and advancing Henkel's RE100 goals. This partnership has the potential to enable Henkel to achieve annual CO2 savings of over 4,500 tonnes at its manufacturing sites in Kurkumbh and Thane, Maharashtra, with an impact equivalent to planting 300,000 trees each year.
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