Mumbai, October 7: Active pharmaceutical ingredient (API) manufacturer Alivus Life Sciences Limited will acquire a 9.21% equity stake in Torrent Urja 19 Private Limited to secure a continuous supply of clean, renewable power for its drug manufacturing operations while advancing its long-term environmental sustainability targets.
Under the agreement, Alivus Life Sciences minority equity stake in Torrent Urja 19 will be a special purpose vehicle (SPV) under Torrent Power to help Alivus procure solar and wind energy under the “group captive” power framework outlined in the Indian Electricity Act.
Key operational aspects of the agreement include:
- Equity Stake: 9.21% ownership in Torrent Urja 19.
- Primary Objective: Sourcing renewable electricity for active pharmaceutical ingredient (API) production facilities.
- Regulatory Alignment: Satisfying group captive user rules to access power generated from off-site green energy plants.
With this power purchase model, Alivus Life Sciences aims to secure power for its key production units at predictable rates while shielding operational costs from market fluctuations in conventional power agreements.
This move is part of the larger trend of API manufacturers switching to captive renewable energy sources as they aim to lower their carbon footprint, especially with their energy-intensive operations requiring steady supplies for chemical synthesis, cooling and strict environmental controlled packaging facilities. Adopting a green power supply helps lower the environmental footprint per kilogram of active ingredients produced.
