MRF Invests ₹99 Crores in Serentica Renewables for Clean Energy Push

India's leading tyre manufacturer MRF Limited has announced a strategic investment of ₹99 crores to acquire a 26% stake in Serentica Renewables India 26 Private Limited, marking the company's significant entry into renewable energy sector. This move represents MRF's commitment to reducing its carbon footprint and enhancing sustainable manufacturing practices as the automotive industry transitions toward cleaner energy solutions.

The Chennai-based tyre giant will invest ₹99 crores through cash consideration to acquire up to 26% equity stake in Serentica Renewables India 26 Private Limited, a company incorporated on May 5, 2025. The deal includes a power supply and consumption agreement for solar and wind power under the government's captive power policy, with completion expected by July 31, 2026.

Serentica Renewables India 26 Private Limited, headquartered in Gurugram, operates as a developer in build, own, operate, maintain and manage hydel, solar, wind, geothermal, energy storage and other alternate energy sources. Since the company was recently incorporated, it has not commenced commercial operations yet.

This renewable energy investment aligns with MRF's broader sustainability strategy as the company faces mounting pressure to reduce emissions across its 10 manufacturing facilities in India. The tyre manufacturer has already committed to achieving net-zero Scope 1 and 2 emissions by FY2050, with an interim target of 25% reduction in emission intensity by FY2028. 

Currently, renewable energy contributes 12% to MRF's overall electricity consumption through renewable power purchase agreements. The Serentica investment represents a strategic move to expand this renewable energy portfolio and ensure long-term energy cost stability for the company's manufacturing operations.

The captive power arrangement will provide MRF with direct access to clean energy under the group captive generation mechanism outlined in the Electricity Act, allowing the company to meet at least 51% of its power requirements from the jointly-owned renewable facility. 

While carbon credits could provide additional revenue streams, MRF's investment appears driven by multiple strategic factors beyond carbon monetization. The primary motivation centres on energy security and cost management, as captive renewable power plants typically offer 20-25 years of predictable energy costs compared to volatile grid tariffs. 

The investment also positions MRF to meet India's Renewable Purchase Obligations (RPOs) while supporting the country's net-zero emissions target by 2070. This regulatory compliance aspect has become increasingly important as environmental norms tighten across industrial sectors.

MRF's renewable energy push follows similar moves by other major Indian tyre manufacturers. Competitor JK Tyre became India's first tyre company to join the RE100 initiative, committing to 100% renewable electricity by 2050. JK Tyre has already achieved 53% renewable energy in its operations and targets 75% within five years. 

Meanwhile, Bridgestone's Pune facility achieved carbon neutrality status through a combination of solar panels, biomass-based boilers and carbon offset credits.