Relaxo Footwears Acquires 26% Share In Clean Max Muoi Private

Market snapshot: Relaxo Footwears Limited has completed the acquisition of a 26% paid-up equity share capital in Clean Max MUOI Private Limited. The transaction involves purchasing 2,600 shares from promoter Clean Max Enviro Energy Solutions Limited to secure group captive solar power for manufacturing units in Haryana.

Data Snapshot

• Acquisition of 26% paid-up equity share capital consisting of 2,600 shares in Clean Max MUOI Private Limited.
• Standalone net profit rose 12.35% YoY to ₹54.94 crore in Q1 FY27 on a 7.73% increase in sales to ₹705.05 crore.

What's Changed

• Relaxo Footwears expanded its operational sustainability framework by executing definitive agreements to procure solar power directly under the group captive mechanism.

Key Takeaways

• Secures a 26% equity holding in Clean Max MUOI Private Limited, fulfilling statutory thresholds under the Electricity Act, 2003.
• Power generated from the special purpose vehicle will supply energy to Relaxo's footwear production cluster in Haryana.
• Captive solar procurement lowers operating power overheads, protecting margins against grid electricity tariff volatility.

SAHI Perspective

By taking a 26% equity stake in the renewable energy special purpose vehicle, Relaxo Footwears satisfies mandatory statutory requirements for group captive power consumption. Strategic allocation into captive solar capacity will help manage utility overheads effectively over time.

Market Implications

Long-term group captive power purchase agreements stabilize input utility costs for key manufacturing operations in Haryana. Operating margin visibility is expected to improve as renewable power replaces conventional commercial grid supply.

Trading Signals

Market Bias: Bullish

Strategic 26% stake acquisition enhances operational utility cost control alongside Q1 FY27 standalone net profit expansion of 12.35% YoY to ₹54.94 crore.

Overweight: Consumer Footwear, Manufacturing Cost Optimization

Trigger Factors:

• Commercial commissioning timeline for the Clean Max MUOI solar project
• Upcoming Q2 FY27 earnings announcement
• Trends in synthetic rubber and EVA polymer raw material prices

Time Horizon: Medium-term (3-12 months)

Industry Context

Footwear manufacturers in India are prioritizing energy cost reduction and sustainability targets. Implementing group captive solar projects enables energy-intensive manufacturing units to lock in lower power tariffs and comply with ESG objectives.

Key Risks to Watch

• Project completion or grid connectivity timelines for the solar power facility.
• Potential revisions to state open-access or cross-subsidy charges in Haryana.

Recent Developments

Relaxo Footwears executed definitive power supply and shareholder agreements with Clean Max MUOI Private Limited on October 05, 2026, and confirmed completion of the 26% equity transaction on October 23, 2026. Earlier, shareholders approved a final dividend of ₹3.50 per share at the September 24, 2026 AGM, following Q1 FY27 standalone net profit growth of 12.35% YoY to ₹54.94 crore.

Closing Insight

Acquiring a mandatory equity stake in group captive solar generation builds long-term operational efficiency, helping Relaxo safeguard cost structures in major production hubs.

High Performance Trading with SAHI.