A global heavyweight in integrated denim manufacturing, Nandan Denim (NDL) is shifting its operational focus toward energy resilience. The Board’s recent approval to acquire a 6.1 per cent equity stake in Opera Vayu (Narmada) for Rs 4 crore marks a strategic move into the group captive renewable energy space. This acquisition secures 4.3 MW of dedicated wind and solar capacity from the SPV’s combined 48.1 MW infrastructure, ensuring a stable, green power supply for NDL’s Bareja manufacturing facility for the next 25 years.
Mitigating volatility through captive sourcing
In an era where energy costs typically account for 8 per cent to 10 per cent of total textile production expenses, NDL’s move targets the ‘triple squeeze’ of rising fuel, freight, and raw material costs. By locking in competitive rates through this 25-year Power Purchase Agreement (PPA), the company aims to bypass the volatility of the commercial grid.
Transitioning to a group captive model is no longer just an ESG checkbox; it is a fundamental cost-control strategy that enhances our global price competitiveness, notes a senior finance executive familiar with the deal.
Sustainable scale and market leadership
As the world’s fourth-largest integrated denim maker, NDL’s move reflects a broader sector trend where yarn and fabric firms are increasing renewable adoption from a mere 3 per cent to 8 per cent to offset high emission intensities. With a reported revenue of Rs 3,546.7 crore in FY2025, NDL is leveraging its financial scale to integrate solar and wind solutions, aiming for a carbon-neutral footprint while supporting a 76.4 per cent Y-o-Y growth trajectory.
As the flagship of the Chiripal Group, Nandan Denim is a premier integrated manufacturer specializing in denim, shirting fabrics, and yarn. Operating primarily out of Gujarat, the company serves major global and domestic retail brands. NDL is currently scaling its sustainable manufacturing capabilities to reach carbon neutrality, supported by robust revenue growth and an expansive presence in over 20 countries.
