Serentica Renewables has signed a long-term power purchase agreement with Sanathan Polycot Private Limited, a subsidiary of Sanathan Textiles Limited, to supply clean energy to the textile sector. The companies will establish a Special Purpose Vehicle (SPV) to deliver a 32-megawatt (MW) hybrid, round-the-clock renewable energy project, with Sanathan holding a 26 per cent stake and Serentica Renewables retaining the remainder. The arrangement is intended to ensure uninterrupted operations at Sanathan Polycot's manufacturing facility in Punjab.

This deal marks Serentica’s first engagement in the textile sector and reflects the firm’s strategy to expand decarbonisation solutions for energy-intensive industries. The project will provide dependable and cost-efficient green power and is expected to give Sanathan long-term visibility on energy costs while supporting its sustainability agenda. Sanathan is described as an integrated and diversified yarn manufacturer operating across three segments, including polyester filament yarns, cotton yarns and yarns for technical textiles.

An earlier report by ICRA ESG Ratings Limited noted a steady increase in renewable energy adoption by Indian textile companies even as energy use per unit of revenue rose. The review covered 19 major textile firms from FY2023 to FY2025 and found the average renewable energy share in the sector's total energy consumption rose from about 14 per cent in FY2023 to 18 per cent in FY2025. The findings were presented within a broader analysis titled Sustainability Unstitched: Indian textile industry’s green gauge.

Serentica said the collaboration strengthens its ability to deliver tailored clean energy solutions to energy-intensive sectors and expands its portfolio across India's industrial and manufacturing landscape. The company added that providing round-the-clock renewable energy will enable industries to transition to clean power seamlessly and that the partnership with Sanathan Polycot indicates growing momentum among industrial players to adopt sustainable energy solutions. The arrangement is positioned as a step towards decarbonising a key pillar of India's manufacturing economy.