The India Cements Limited Secures 12.48% Stake in FPEL Services Private Limited

The India Cements Limited has officially announced its execution of an Energy Supply Agreement alongside a Share Subscription and Shareholders Agreement to acquire a 12.48% equity stake in FPEL Services Private Limited. This acquisition is designed to directly satisfy the company’s escalating green energy needs, streamline operational power costs, and meet all mandatory regulatory conditions for captive power consumption specified under prevailing electricity laws. The transaction involves a direct cash consideration totaling up to ₹10.78 crore.

The target entity, FPEL Services Private Limited, functions as a structured special purpose vehicle (SPV) focused entirely on the generation and transmission of renewable wind energy. Registered in Hyderabad, Telangana, the SPV is dedicated to providing 14 MW AC of wind power on a captive baseline specifically to India Cements’ manufacturing facilities situated across Tamil Nadu. The clean energy will be generated from a localized wind project built in the Karur village of Tamil Nadu. The entire cash-based acquisition process is planned to be completed within a standard timeframe of 180 days from the initial signing of the active core agreements.

Established in 1946, The India Cements Limited has grown into one of India’s premier cement manufacturing companies, operating major production plants across South India. Now operating as a subsidiary of UltraTech Cement Limited, the company has consistently modernized its footprint. In operational developments from 2025, the company prioritized legal compliance, corporate restructurings, and capacity improvements, which included processing schemes of amalgamation and addressing substantial volume shifts in trading markets. To ensure sustainable production trajectories, India Cements focused heavily on elevating its environmental standing, marked by receiving official ESG ratings from CRISIL ESG Ratings and Analytics in August 2025.

Financially, India Cements recorded resilient adjustments during its quarterly performance cycles in 2025. In the financial results announced for the period ending March 2025, the company highlighted a successful turnaround, swinging back into net profitability with a quarterly profit of ₹14.68 crore, even though net operational sales dipped slightly to ₹1,197.13 crore due to localized market dynamics. This momentum laid the groundwork for further earnings improvements across successive quarters. Notably, the renowned veteran investor Radhakishan Damani, acclaimed as the “Retail King of India” and the founder of DMart, has historically maintained a significant investment stake in India Cements, underscoring the deep structural market value inherent to the legacy manufacturer.