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

Suzuki Motor Corporation has decided to acquire a 26% stake in NDDB Mirda Ltd, a bio-gas venture developed by the National Dairy Development Board (NDDB). This move aligns with Suzuki’s plans to use Compressed Bio-Gas (CBG) for enhancing the longevity and performance of vehicles. Suzuki had initially sought a 49% stake in the venture but has been allowed to take a 26% stake. However, there is a provision for Suzuki to gradually increase its stake to 49%. The deal marks a significant step in the company’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

• There is a provision to increase Suzuki’s equity stake in NDDB Mirda Ltd to 49% over time.

Focus on Sustainability

• Suzuki is interested in the bio-gas plants due to their use of CBG and CNG, which they believe are the best options for environmentally friendly vehicles.

Initial Project

• The initial investment will help establish four dung-based CBG plants in Banaskantha, Gujarat, developed with the help of Banas Dairy.

Collaborative Effort

• Suzuki, NDDB, and Banas Dairy have worked together to set up multiple CBG production centers in rural Gujarat, with Suzuki providing the funding.

Bio-Gas Quality

• Suzuki’s in-house study shows that CBG from cow dung is superior for vehicle longevity and performance compared to other sources of bio-gas.

Future Prospects

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

Expansion Plans

• Following Banas Dairy, other dairy unions in Gujarat, such as Sabar Dairy, Dudhsagar Dairy, and Panchmahal Dairy, are looking to set up CBG plants with CSR funds from Suzuki.