The board of Prism Johnson has approved an investment not exceeding ₹40 crore in equity and/or redeemable preference shares of KUS Renewable (KUS). According to reports from Business Standard, this approval was granted at a board meeting held on 25 September 2026. The meeting commenced at 09:30 a.m. and concluded at 09:52 a.m., with the investment made in the equity and/or redeemable preference shares of the renewable energy company. The acquisition not constituting a related party transaction as the promoter group holds no interest in the target entity. The proposed investment is expected to be completed by October 31, 2027. As per the company statement, the investment is specifically aimed at securing access to lower-cost renewable power while reducing the cost of cement production, forming part of Prism Johnson's broader efforts to increase renewable energy usage and improve energy efficiency.
KUS is a Special Purpose Vehicle incorporated by Purvah Green Power (PGPPL), which is a subsidiary of Calcutta Electric Supply Corporation (CESC). As reported by Business Standard, this corporate structure positions KUS as a dedicated renewable energy entity within the CESC group for specific project development. The Board of Directors authorized the investment in equity and/or redeemable preference shares of KUS, which was incorporated on September 26, 2024. The proposed acquisition is not a related-party transaction and that the promoter or promoter group has no interest in KUS Renewable.
Prism Johnson will acquire equity shares with voting rights representing at least 26.5% of the equity share capital of KUS, along with redeemable preference shares. The consideration will be paid in cash through normal banking channels. This strategic acquisition aims to reduce production costs and support ESG sustainability goals by increasing renewable energy utilisation and improving energy efficiency at the company's operations. The investment will enable the company to purchase renewable power at a lower cost, which is expected to help reduce the cost of cement production. The ₹40 crore investment should also be viewed separately from the eventual economic benefits of the power project, with the disclosure not quantifying the expected annual savings or return from the captive wind arrangement. The project is expected to strengthen the company's renewable power sourcing while supporting its environmental, social and governance objectives.
KUS will establish a 49.5 MW captive wind power project at Tehsil Alot, District Ratlam, Madhya Pradesh for supply of dedicated renewable power to Prism Johnson's cement plant located at Satna, Madhya Pradesh. According to the reports, this project will be developed on the terms and conditions of the power purchase agreement proposed to be entered into between the company and KUS. The wind power project represents a significant renewable energy initiative for the cement manufacturing operations, with the acquisition supporting the company's operational requirements for sustainable energy supply. The renewable electricity generated by the project will be supplied to Prism Johnson's cement manufacturing facility at Satna under a proposed Power Purchase Agreement between Prism Johnson and KUS.
This investment aligns with Madhya Pradesh's emergence as a centre of renewable energy investment, having attracted $1 billion in private investment through projects backed by the Asian Development Bank (ADB). The project supports Madhya Pradesh's Renewable Energy Policy 2025, which aims to meet 50% of the state's electricity demand from renewable energy sources by 2030. According to an International Institute for Sustainable Development (IISD) report, Madhya Pradesh has witnessed an increase in electricity subsidies following the COVID-19 pandemic as it seeks to meet its growing renewable energy ambitions. Prism Johnson is an integrated building materials company with operations across cement, ready-mixed concrete and tiles and bathroom products, serving the construction and infrastructure sectors through its manufacturing and distribution network across central and northern India.
