Over half a dozen companies have invested in Deepak Kochhar-run Echanda Urja Pvt Ltd

Videocon's Venugopal Dhoot is not the only industrialist to support first generation entrepreneur Deepak Kochhar in his solar energy venture - NuPower Renewables - by way of a loan. There are over half a dozen other mid-sized companies that have invested in the equity capital of Echanda Urja Pvt Ltd, a subsidiary of NuPower Renewables.
 
The co-founder and CEO of NuPower Renewables, husband of MD and CEO of ICICI Bank Chanda Kochhar, is already under the scanner of investigating agencies for a loan given by Videocon promoter VN Dhoot. There are issues of possible conflict of interest and quid pro quo against Chanda Kochhar as her bank is one of the lenders to Videocon Industries. The ICICI Bank board, however, is fully backing Kochhar on this issue.    
 
Deepak Kochhar of NuPower is also the MD and CEO of Echanda Urja Private Ltd. The companies that have invested in the NuPower Renewables subsidiary are Hatsun Agro, Steel Strips Wheels, Motherson Sumi, Zuari Cement, CavinKare, Togros Chemicals, Dhandapani Cement, TRIL Infopark and Shri Govindaraja Textiles. The Chennai-based largest private sector dairy Hatsun Agro has the highest stake of 6.11 per cent followed by Shri Govindaraja Textiles at 4.65 per cent.
 
Some of these companies also have banking relationship with ICICI Bank in terms of loans and advances. But a banking relationship could be easily possible because of the large size of the bank with a huge client base.    
 
The equity capital of the company at face value is not much. It stands at Rs 2 crore. But it is not known at what price (premium or at par), these companies have subscribed to the equity of Echanda Urja. A mail sent to Echanda Urja remained unanswered till going to press.  
 
NuPower Renewables had 99 per cent in the equity of Echanda Urja in 2014-15. It means the dilution in equity capital, or the entry of these corporates, took place somewhere in 2015-16.
 
While Deepak Kochhar doesn't hold any shares in the subsidiary in his individual capacity, the parent NuPower Renewables, has a 70.95 per cent stake. Kochhar draws a salary of Rs 2 crore plus annually from this subsidiary.
 
Kochhar was appointed as a Director and further designated as CEO and MD in March 2016 and April 2016, respectively. In November 2014, the name of this subsidiary was also changed from NuPower Urja Private Ltd To Echanda Urja Pvt Ltd.
 
The main business of the company is power generation through wind energy. The parent had actually transferred a part of the business to this subsidiary. In 2016-17, the company reported revenues of Rs 123 crore and net profits of Rs 19.86 lakh.