FMCG giant to run Karnataka factories on 100% renewable energy.
Orkla India, the parent company of popular brands like MTR and Eastern, has announced a strategic partnership with CleanMax, a Brookfield-backed company, to accelerate its sustainability goals. The partnership involves a 25-year power purchase agreement (PPA) for renewable energy generated from a 6.6 MWp solar captive power project in Karnataka.
This project will supply 10 million KWh units of renewable energy per annum to Orkla India’s factories in Karnataka, effectively reducing their carbon footprint by 7500 tons annually. This initiative aligns with the company’s global sustainability objectives and marks a significant step towards net-zero emissions for its manufacturing units in the state.
Under the partnership, CleanMax will manage the energy generation, operation, and maintenance of the solar plant. Orkla India will hold a 26% equity stake in the Special Purpose Vehicle (SPV) formed for the project.
Niklas Stoltz, Director of Sustainability at Orkla India, emphasized the importance of this partnership in setting a new standard for sustainable manufacturing in India’s FMCG sector. Kuldeep Jain, Founder and Managing Director of CleanMax, expressed his excitement about expanding the partnership with Orkla and contributing to their clean energy transition.
Orkla India’s commitment to sustainable production and consumption is evident through this initiative, as the company strives to create a healthier and more resilient future.