Hester Biosciences approves up to ₹1.05 Cr investment in Slyce Agri World LLP to secure captive solar power supply.

The board cleared the plan at a short meeting on 6 October, which ran from 11:00 am to 11:14 am. The company told the stock exchanges the same day.

In return, Hester gets a 26% share of the LLP’s fixed capital. It will pay in cash through normal banking channels, in one or more tranches, and expects to finish the deal within six months.

Why would a company that makes animal vaccines buy into a power producer? The answer is captive power.

Under Indian electricity rules, a company can buy electricity directly from a plant it co-owns, as long as it holds a minimum stake.

Hester’s 26% contribution is meant to meet that requirement and make it the sole captive member consumer of the plant.

In simple terms, Hester is buying into the plant meant to supply its own electricity. Slyce Agri World LLP is a special purpose vehicle set up to generate renewable energy.

It was incorporated on 23 November 2016, has its registered office in Ahmedabad and works in private sector solar power generation.

A Power Purchase Agreement and the LLP agreement will govern the supply.

The LLP’s turnover was about Rs 13 lakh in FY23, Rs 4.09 crore in FY24 and Rs 2.24 crore in FY25. Slyce is not a related party to Hester.

The company’s promoters, promoter group and group companies hold no interest in it, and no government or regulatory approvals are needed for the investment.

There is no share swap involved. The filing does not give projected cost savings or the tariff terms under the power agreement, so those details will have to come in later disclosures.

Hester Biosciences is an animal health company based in Ahmedabad. It makes veterinary vaccines and health products for poultry and livestock, with plants in Gujarat and Nepal.

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