Bajaj Auto Limited announced today that its Board of Directors has approved an additional investment of up to Rs. 12 crores in Clean Max Godavari Private Limited (CMGPL), a renewable energy company. The investment will enable Bajaj Auto to source wind and solar power for its manufacturing plants in Maharashtra through an Open Access Group Captive Power Purchase Arrangement.
The investment will be deployed in a phased manner over the next 12 months and represents a cash consideration. Notably, Bajaj Auto's shareholding in CMGPL will remain unchanged at 26 percent equity stake following this additional investment.
This investment aligns with Bajaj Auto's sustainability objectives and will enable the automotive manufacturer to source clean energy as a captive consumer. The renewable power will be supplied to Bajaj's plants located at Akurdi and Chakan in Pune, Maharashtra.
Clean Max Godavari Private Limited, incorporated on September 23, 2024, specializes in developing and operating captive hybrid power projects. The company supplies wind and solar energy to industrial consumers in Maharashtra through Open Access Group Captive Power Purchase Arrangements. As a newly established entity, CMGPL reported nil turnover for the financial year ending March 31, 2025.
The company stated that no governmental or regulatory approvals are required for this acquisition. The investment will be made entirely in cash, with funds deployed systematically over the coming year to support the development and operationalization of renewable energy infrastructure.
Bajaj Auto's investment in renewable energy infrastructure reflects a broader trend among Indian manufacturers to reduce carbon footprints and secure sustainable power sources. The Open Access Group Captive model allows industrial consumers to source renewable energy directly from dedicated projects, often at competitive rates while meeting environmental, social, and governance (ESG) commitments.
The automotive sector, facing increasing pressure to adopt sustainable practices across the value chain, has seen several major players invest in renewable energy projects. By securing captive power arrangements, companies can better manage energy costs while contributing to India's renewable energy targets.
Clean Max Godavari Private Limited is engaged in the generation and supply of renewable power, specifically focusing on wind and solar energy projects. The company operates under the Open Access Group Captive framework, serving industrial clients in India.
While the Rs. 12 crore investment represents a relatively modest commitment for a company of Bajaj Auto's scale, it demonstrates the manufacturer's strategic intent to secure long-term, sustainable energy sources for its operations. The phased deployment approach allows the company to align capital allocation with project development milestones.
The investment is expected to contribute to operational efficiency by providing access to renewable energy at potentially favorable rates while supporting Bajaj Auto's environmental sustainability goals. As CMGPL develops its wind and solar infrastructure, Bajaj Auto's manufacturing facilities in Pune will progressively transition to cleaner energy sources.