Solarium Re-Enters into Manufacturing Solar Modules
Solar modules typically account for approximately 50–60% of the total project cost.
Solarium Green Energy Limited (Solarium), a market leader in rooftop solar projects in India is planning to re-enter in to manufacturing of Solar Modules using latest technology fully automated machinery with higher capacity. The facility will be installed with production capacity of ~1000 MW (MegaWatt) at Ahmedabad, Gujarat, India and at an estimated project capex cost of ~Rs 70 crore + requisite working capital via mix of debt to equity in ratio of 3:1. This strategic move is part of the company’s backward integration initiative. In EPC projects, there are 3 key components: Solar Module, mounting Structure & Inverter. Solar modules typically account for approximately 50–60% of the total project cost. By setting up an in-house module manufacturing facility, the company aims to mitigate cost volatility, expedite project execution and secure its supply chain along with improvement in margins.
The facility will focus on the production of Crystalline Silicon Solar PV Modules, utilizing advanced technologies such as TOPCon cells, half-cut cells, and bifacial cells using imported tabber-stringers, laminators, and sun simulators to ensure high-quality output and efficiency. We are also initiating the manufacturing of mounting structures (which accounts for ~10% of the project cost ) in our existing facility in Bavla, Gujarat which will further boost the execution capability and timelines for project completion. The manufacturing facility is aimed at mitigating supply chain risks arising from trade-related disruptions, geopolitical uncertainties, and price volatility. By securing in-house production of solar modules, the company seeks to ensure the timely availability of this critical component, thereby safeguarding the execution timelines and cost efficiency of its long-term EPC projects.
With Industry’s future prospect looking robust on the back of India’s solar energy potential to reach at about 750 GW by 2047, any additional capacity available post captive consumption will be used to cater the other EPC players/B2B segment by selling the Solar Modules alone. The upcoming in-house manufacturing capacity is expected to strengthen Solarium’s bidding capabilities across both B2G and B2B segments, positively influencing its ability to secure a higher volume of orders going forward. This vertical integration also aligns with our expansion plan for the residential segment, allowing us to meet growing demand with consistent product standards while differentiating ourselves in a competitive market through enhanced service reliability and end-to-end solutioning. Given the dynamic nature of technology in the solar industry, the plant will be equipped with the latest advancements and fully automated operations to ensure efficiency and future readiness
The commercial operation is expected to be commissioned from Q4 of the current FY. Commenting on the strategic move of backward integration and foray into manufacturing, Mr. Ankit Garg, Chairman and Managing Director, Solarium commented, “We are thrilled to re-enter the manufacturing space and are confident of the synergy this module manufacturing will bring to our supply chain. Our focus is to fully backward integrate our business with the key objective to secure our supply chain and improve profitability. At 85% plant utilization, the plant is capable of generating a revenue of Rs.1,000+ crore (If Modules gets sold in the market). While captive consumption of Modules, by eliminating third-party markups, we expect the gross margin improvement by 5%–8% in the projects where these modules will be used.
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