Cummins India invests in renewable power through group captive model

Cummins India Limited's board of directors approved the acquisition of equity shares in Clean Max Yellowstone Private Limited ("Clean Max"), a special purpose vehicle. The investment, totaling up to INR 2.70 crore, will secure at least 8.78% of Clean Max's equity share capital, enabling Cummins to procure solar, wind, and hybrid renewable power for its factories and premises.

This investment, alongside two other Cummins group entities in India, will collectively hold at least 26.00% of Clean Max's equity share capital. This fulfills regulatory requirements for group captive power plants under the Electricity Act, 2003, and Indian Electricity Rules, 2005. The transaction, expected to close within three months, is a cash consideration and aims to reduce Scope 2 greenhouse gas emissions and optimize power costs.

Clean Max Yellowstone Private Limited, incorporated on September 23, 2024, is engaged in developing and operating renewable energy projects. As of March 31, 2025, Clean Max reported nil turnover, a profit after tax of -INR 0.04, and a net worth of -INR 0.03. The proposed transaction is not a related-party transaction.