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Corporate Update

Shahlon Invests Rs 85.5 Lakh In CETP Development Project In Surat

• By  Textile Excellence
• May 31, 2026

Shahlon Silk Industries Ltd has approved an investment of Rs. 85.5 lakh in group company Karanj Envirocare Private Ltd (KEPL), which is developing a 20 MLD Common Effluent Treatment Plant (CETP) project in Surat. The investment will be made through subscription to 8.55 lakh equity shares under a rights issue, giving Shahlon a 19% stake in KEPL.

According to the company’s regulatory filing, the project is currently under development and commercial operations are yet to begin. KEPL has already secured the necessary government approvals for setting up the CETP facility.

The proposed plant is aimed at treating industrial wastewater generated by textile and other industrial units, supporting environmental compliance and sustainable operations in the region’s manufacturing sector.

Shahlon said the investment is being made for strategic business purposes, with a focus on strengthening group synergies and supporting long-term growth. Since KEPL is a group company, the transaction qualifies as a related party transaction, though the company stated that the investment is being carried out on an arm’s length basis.

The acquisition process is expected to be completed on or before August 31, 2026, subject to completion of necessary formalities.

Shahlon said the investment is being made for strategic business purposes, with a focus on strengthening group synergies and supporting long-term growth. Since KEPL is a group company, the transaction qualifies as a related party transaction, though the company stated that the investment is being carried out on an arm’s length basis.