Pritika Engineering Components, a subsidiary of Pritika Auto Industries on behalf of the Pritika Group of Industries, has signed a Memorandum of Understanding (MoU) with Spark Grid for the supply of solar power at a competitive rate over a period of 25 years. The long-term solar power arrangement is expected to deliver significant cost efficiencies for the Pritika Group of Industries, with estimated savings of around Rs 110 crore over the 25-year tenure. Of this, Pritika Engineering Components and Meeta Castings are expected to benefit with savings of around Rs 70 crore and the company would benefit the balance savings for the same period.
As part of the proposed arrangement, a special purpose vehicle (SPV) will be established for the solar power project. Pritika Engineering Components is expected to hold 26% equity in the SPV on behalf of the Pritika Group of Industries, subject to the completion of applicable approvals and documentation. The initiative is aligned with the Group's focus on improving operational efficiency, reducing long-term energy costs and increasing the contribution of renewable energy to its power requirements. The long-term solar power arrangement is expected to provide greater visibility on energy costs while supporting the Group's sustainability objectives.
Pritika Engineering Components has one wholly owned subsidiary in the name of ‘Meeta Castings’, which is a step down subsidiary of the company.
Pritika Auto Industries is a flagship company of the Pritika Group of Industries. It is engaged in the manufacturing of tractor and automobile components. It manufactures a wide range of products such as axle housings, wheel housings, hydraulic lift housings, end cover, and crank cases, among others. It also provides engineering and allied services to its clients.
