BASMLNSEBannari Amman Spinning Mills Limited· Textiles - CottonHighNeutral
Announced Wed, 11 Jun · 12:44 IST

Bannari Amman Spinning Mills Limited has informed the Exchange regarding Board meeting held on Jun 11, 2025. Investment in Captive Solar Power Project

Capex & Operations View source PDF

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Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

The board of Bannari Amman Spinning Mills has approved setting up a captive solar power project of 9.74 MW DC (7.20 MW AC) capacity at its Spinning Unit II in Velvarkottai, Dindigul District, Tamil Nadu. The total project cost is estimated at around Rs. 40 crores, with commissioning planned by end of October 2025. The new project is expected to generate around 1.50 crore units of power annually, taking the company's self-sourced power (including existing 23.40 MW windmills and 12 MW group captive solar) to about 65% of total power needs, up from the current ~49%. Power is described as a critical cost component in spinning operations.

Likely market impact

This is a positive step toward reducing power costs and improving energy self-sufficiency, which should support margins in the long run. The Rs. 40 crore capex on captive solar is a meaningful investment that signals management's focus on controlling input costs, though it is a near-term cash outflow with returns expected over the project's life.