Primo Chemicals Limited has officially moved forward with its strategic green energy initiative by approving the incorporation structure and term sheet for its investment in a Special Purpose Vehicle (SPV) named TPCS Private Limited. This follows the company’s initial disclosure on January 16, 2026, regarding its plan to acquire a 26% equity stake in the SPV to own and operate a 50 MW Solar Power Plant under a captive mode OPEX model. The Board of Directors finalized these details in a meeting held on May 5, 2026.

The SPV, TPCS Private Limited, was incorporated on February 13, 2026, and is dedicated to the generation and transmission of renewable energy. Primo Chemicals intends to invest Rs. 21 Crores in the equity capital of the entity across one or more tranches. The primary objective of this acquisition is to achieve significant operational efficiency, with anticipated cost savings of up to Rs. 24 Crores per annum once the 50 MW solar plant is commissioned. The company is currently in the final stages of executing the Power Purchase Agreement and Share Subscription and Shareholders Agreement.

Formerly known as Punjab Alkalies & Chemicals Limited, Primo Chemicals is a leading manufacturer of Caustic Soda and other chemical products in North India. Throughout 2025, the company focused on enhancing its sustainability profile and optimizing power costs, which remain a major component of its production expenses. In late 2025, the company reported the successful stabilization of its expanded capacities and received several industrial orders for chlorine and hydrochloric acid, strengthening its market position as a critical supplier to the water treatment and pharmaceutical sectors.

For the last quarterly financial results announced in late 2025, the company demonstrated resilient performance with a revenue growth of approximately 12% compared to the previous fiscal year’s quarter. The net profit saw a substantial rise of 18%, driven largely by improved realizations in the Caustic Soda segment and disciplined cost management. A notable famous investor in the company is Ashish Kacholia, who has historically held a significant stake, signaling confidence in the company’s long-term value proposition and its shift toward cost-effective renewable energy solutions.