Suzuki’s Investment in NDDB’s Bio-Gas Venture

Originally, Suzuki sought a 49% stake in the venture but was granted a 26% share. However, there is an option to gradually increase its stake to 49%. This deal is a significant step in Suzuki’s commitment to sustainability through alternative fuel sources and rural development.

Key Points

Suzuki’s Stake

Suzuki will acquire a 26% stake in NDDB Mirda Ltd with an initial investment of ₹8.84 crore as part of a ₹34 crore equity capital plan.

Gradual Increase

Suzuki has the option to raise its equity stake in NDDB Mirda Ltd to 49% over time.

Focus on Sustainability

Suzuki is investing in bio-gas plants due to their production of CBG and CNG, which are seen as the most environmentally friendly fuel options for vehicles.

Initial Project

The initial investment will help set up four dung-based CBG plants in Banaskantha, Gujarat, with support from Banas Dairy.

Collaborative Effort

Suzuki, NDDB, and Banas Dairy have partnered to establish multiple CBG production centers in rural Gujarat, with Suzuki providing the funding.

Bio-Gas Quality

Suzuki’s internal research indicates that CBG derived from cow dung is superior for vehicle performance and longevity compared to other bio-gas sources.

Future Prospects

The Indian government’s push for mandatory CNG blending is expected to drive the growth of the CBG sector, which is supported by both private companies and government initiatives.

Expansion Plans

After the Banaskantha plant, other dairy unions in Gujarat, such as Sabar Dairy, Dudhsagar Dairy, and Panchmahal Dairy, are planning to establish CBG plants with CSR funding from Suzuki.