Leading solar module manufacturer Gautam Solar aims to increase its manufacturing capacity to 5 gigawatt (GW) with an investment of Rs 1,000 crore by the end of the current financial year 2024-25, from its present capacity of 1 GW, the company’s managing director Gautam Mohanka told FE.
Simultaneously, the company is looking to start manufacturing solar cells, a key component used in modules, in the next one to two years.
“Right now we are at a 1 gigawatt capacity of solar modules and we have taken a 60 acre land parcel in Bhiwani. We aim to be 5 GW by April 2025,” Mohanka said. “It is basically coming in various phases. In the first phase, the pilot production started from November 12 and slowly we are adding on to it.”
The company expects full-scale production to begin from December 1, 2024. By January 2025, it will add two more production lines, increasing capacity to 3 GW before reaching 5 GW by April 2025.
“The land we’ve acquired can accommodate up to 12 GW of capacity. If the market demand is strong, we’re prepared to add 1 GW per month next year,” Mohanka said. He said that every 1 GW of module manufacturing capacity requires an investment of around Rs 150 to 200 crore.
Mohanka highlighted that, ideally, the company prefers to fund expansion through internal accruals but is considering going for an initial public offering (IPO) in the next 12-18 months to raise Rs 1,000 crores for the solar cell manufacturing unit.
“We are now exploring various places (for the solar cell manufacturing unit). We are talking to various states where we could get a good tie-up in terms of any incentive, because it is going to be a huge investment. So, we are talking to various states now where we could get the best incentives or water tie-ups in place and the disposal at norms, etc,” the MD said, adding that he would like to dilute only 10% of the amount raised.
Gautam Solar intends to double its revenue to Rs 1,400 crore, compared to Rs 727 crore in the current fiscal year.
Speaking on the state of the domestic manufacturing market, Mohanka said that with the imposition of the Approved List of Modules and Manufacturers and the government’s push for domestic manufacturing, a significant portion of that market is now shifting to India. Before April 2024, 90-95% of the market was dominated by China.
“I believe this shift will be substantial, and along with it, the demand for solar modules in India will grow, especially with the government’s plan to tender 50 GW every year,” he said highlighting that India is taking steps to indigenise the entire supply chain, from solar cells to the raw materials like glass, ribbon, and aluminum.
“Once India achieves this indigenisation at scale, we should be able to compete effectively (with China) on price. For now, there are import duties on components, which increases costs for Indian manufacturers, but the long-term goal is to reduce these dependencies and bring down costs,” he said.
After having achieved a consolidated position in the solar sector, the company, down the line, may explore green hydrogen or independent power producer opportunities. The company is also keenly eyeing the export market particularly to the US.
“We’re also watching the export market closely. If the US market proves favorable post-Trump, we may look into exports as a priority,” he said.
On the company’s plan to expand its manufacturing overseas, Mohanka said that if the market is favorable and the policies align, Gautam Solar would definitely consider expanding into the US or other international markets.