Vardhman Textiles gets shareholder approval to enter power generation sector

Shareholders of Vardhman Textiles Limited have approved an amendment to the company’s Memorandum of Association to include electricity generation as a business activity, enabling the firm to establish power plants and explore renewable and conventional energy opportunities.

Vardhman Textiles Limited has received shareholder approval to expand its business scope to include electricity generation, marking a significant step toward diversification beyond its core textile operations.

The approval was granted through a postal ballot that concluded on March 11, 2026, allowing the company to amend its Memorandum of Association (MoA) to formally add power generation as a new business objective.

The development was disclosed to stock exchanges under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring compliance with regulatory norms governing corporate disclosures.

Amendment to Memorandum of Association

As part of the approval, shareholders agreed to modify the company’s object clause in the MoA by adding a new sub-clause (xxxiv) under Clause III (B), which deals with activities incidental or ancillary to the company’s main business objectives.

The amendment formally enables Vardhman Textiles to participate in electricity generation and related activities, broadening the company’s operational scope.

Under the revised clause, the company can establish, purchase, or acquire facilities for generating and supplying electricity through multiple energy sources.

Wide Range of Energy Sources Allowed

The newly approved business objective allows the company to generate electricity using a variety of energy sources. These include:

Hydel power

Thermal power

Nuclear energy

Solar power

Wind energy

Gaseous fuels

Other non-conventional energy sources

The company will also be able to accumulate, distribute, and supply electricity through its own facilities or in collaboration with third-party partners.

Opportunities for Captive Use and External Sales

The amendment provides flexibility for the company to generate electricity both for captive consumption and for commercial sale in the open market.

For a large manufacturing firm like Vardhman Textiles, power generation could help ensure energy security for its textile production operations. At the same time, the move opens the possibility of creating an additional revenue stream by selling surplus electricity externally.

Industry observers note that several manufacturing companies in India have been exploring similar strategies to manage energy costs and integrate renewable energy sources into their operations.

Strategic Diversification Move

The decision reflects a broader diversification strategy by Vardhman Textiles as it explores opportunities beyond its traditional textile manufacturing business.

Entering the power generation sector could allow the company to take advantage of India’s growing demand for electricity, particularly from renewable energy sources such as solar and wind.

The flexibility offered by the amended object clause also allows the company to evaluate various energy technologies and potential partnerships in the power sector.

Regulatory Filing and Confirmation

The results of the postal ballot were formally communicated to stock exchanges by the company through a regulatory filing. The disclosure was signed by Company Secretary Sanjay Gupta, confirming the successful completion of the voting process and requesting exchanges to take the results on record.

With shareholder approval secured, Vardhman Textiles now has the regulatory backing to explore opportunities in the power generation space as part of its long-term growth strategy.