Suzuki Motor Corporation, through its subsidiary Suzuki R&D Center India (SRDI), has partnered with the National Dairy Development Board (NDDB) to invest in its biogas arm, NDDB Mirda.
Suzuki will acquire a 26% equity stake, with NDDB retaining 74%. The equity transaction is valued at par, with an initial capital of Rs 3 billion. In the first phase, Suzuki will invest Rs 88.4 million, while NDDB will contribute Rs 251.6 million, scaling further investments as required.
Initially seeking a 49% stake, Suzuki received the Government of India’s approval for up to 26%, with potential for future increases. Suzuki’s interest in NDDB’s biogas stems from its focus on sustainable vehicle solutions, particularly compressed biogas (CBG) derived from cattle dung, outperforming other internal test sources.
The collaboration includes plans with Banas Dairy to establish CBG plants in Gujarat. NDDB will develop the plants, Banas Dairy will operate them, and Suzuki will fund the initiative through corporate social responsibility. Four new plants will support Banas Dairy’s existing facility, with profits shared between Suzuki and Banas Dairy.