Havells India Ltd has announced that its Executive Committee has approved acquiring a 26% stake in Kundan Solar (Pali) Private Limited, a Special Purpose Vehicle (SPV) set up for developing and operating a solar power plant. The decision was taken at a committee meeting held on November 26, 2025, which concluded at 11:30 AM.
According to the filing, Kundan Solar is a subsidiary of Kundan Green Energy Pvt Ltd, part of the Kundan Group, and is focused on developing, installing, managing and maintaining solar power plants. The acquisition does not fall under a related-party transaction for Havells, as the promoter group of Havells has no interest in Kundan Solar.
Strategic shift towards green energy
Havells stated that the purpose of the investment is to reduce dependence on fossil fuels and move toward green energy. As part of the arrangement, Kundan Solar will set up a 15 MWac solar power plant, and Havells plans to sign a long-term Power Purchase Agreement (PPA) of up to 25 years for captive consumption.
Under Electricity Laws, Havells must hold at least 26% shareholding in the generating plant to qualify as a captive consumer, which is the basis for the stake acquisition. The company expects the arrangement to result in significant power cost savings at its Rajasthan plant locations, with a payback period of 12–18 months from the commissioning date.
Investment details
- Total investment value: ₹5.63 crore
- Mode of payment: All cash consideration
- Stake acquired: 26%
- Acquisition timeline: Investment to be completed in multiple tranches linked to project milestones, expected by June 30, 2026
- Government approvals: Not applicable as per the filing
About Kundan Solar
Kundan Solar (Pali) Pvt Ltd was incorporated on April 3, 2025, in India as an SPV for solar power development. The 15 MWac project is expected to be commissioned in Q2 FY26-27, according to the document.
