Aditya Ultra Steel Secures Land Lease for 5,000 KWP Solar Plant
PNN
Rajkot (Gujarat) [India], May 6: Aditya Ultra Steel Ltd (NSE - AUSL) - Leading company engaged in the business of manufacturing rolled steel products i.e. TMT bars under the brand name 'Kamdhenu' in a bold stride toward sustainability and self-reliance has announced a significant investment in renewable energy a 5,000 KWP Solar Captive Power Plant aimed at powering its operations with clean, green energy. The company was listed on the NSE -SME exchange on 16th September 2024.
The company is installing a solar power plant with a capacity of 5,000 KWP at Jasdan, Rajkot, aimed at significantly meeting the company's energy needs while enhancing sustainability and reducing exposure to electricity price fluctuations, investing Rs. 15.35 crore. The new solar project isn't just a power solution, it's a commitment. Located at Block/Survey Nos. 105, 106 P-1, 108 & 109 in Village Kundani, Sub-District Jasdan, Rajkot District, the plant will supply sustainable energy directly to the company's manufacturing facility at Survey No. 48, Wankarner Boudry, Bhalgam, National Highway 8-A, Wankaner, Rajkot.
This move comes as part of the company's strategy to reduce its carbon footprint, optimize energy costs and future-proof operations in line with global climate goals. Once operational, the plant is expected to significantly reduce reliance on grid power making the production of steel bars not just strong, but sustainable.
"Steel may be the backbone of modern infrastructure, but clean energy is the future. With this project, we're building both," said a company spokesperson. "This marks a new chapter for Aditya Ultra Steel where industrial strength meets environmental responsibility."
At the Board of Directors meeting held on Tuesday, April 29, 2025, the Company formally approved the decision to lease the land for this project from KPI Green Energy Ltd., a recognised leader in solar energy infrastructure. The solar initiative underscores Aditya Ultra Steel's broader vision: to lead not only in manufacturing excellence but also in climate-conscious industrial practices. Any major developments regarding the solar plant's installation, commissioning, or impact on production will be shared with stock exchanges as per regulatory norms.
Key Highlights
- The plant is located in Village Kundani and will directly supply clean energy to the Wankaner manufacturing unit.
-This initiative aims to cut carbon emissions, reduce energy costs, and align with global climate goals.
-CRISIL recently assigned BBB/Stable for Long Term Rating and CRISIL A3+ for Short Term
- For FY24, company reported Revenue of Rs. 587.80 crore, EBITDA of Rs. 18.81 crore and PAT of Rs. 7.69 crore
Incorporated in 2011, Aditya Ultra Steel Ltd manufactures rolled steel products, i.e. TMT bars, under the brand name "Kamdhenu".The company manufactures TMT bars from billets in a reheating furnace and a rolling mill, mainly catering to the construction industry and infrastructure development. The company's manufacturing facility is located in Wankaner, Gujarat and has a production capacity of 1,08,000 MT for TMT bars.
In September 2024, the company successfully completed its Rs. 45.88 crore public issue on the NSE - SME exchange to fund its expansion plans, including meeting working capital requirements and general corporate purposes. In the six months of FY 2024-25, the company continued its trajectory of robust growth, reporting significant improvement across key financial metrics. The company reported Revenue of Rs. 312.39 crore, EBITDA of Rs. 10.50 crore and reported net profit of Rs. 5.20 crore for the H1FY25. For the full year ended March 2024, the company had reported revenue of Rs. 587.80 crore, EBITDA of Rs. 18.81 crore and Net Profit of Rs. 7.69 crore, respectively.
Company has been assigned a credit rating of CRISIL BBB/Stable for Long Term Rating and CRISIL A3+ for Short Term Rating from CRISIL Ratings Limited. This rating reflects the company's financial stability, operational performance, and overall creditworthiness. It highlights company's ability to meet its financial obligations and serves as an important indicator of its financial health for investors and stakeholders. The upgraded or maintained rating is expected to facilitate better access to financing and more favourable terms in the capital markets.
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