Vikram Solar Targets 12 GW Solar Cell Manufacturing Capacity By FY27

Solar modules manufacturer Vikram Solar Ltd. is gearing up for a “phenomenal transformation” in India’s renewable energy sector, ignited by India’s ambitious green energy goal.

For the country to achieve its renewable energy targets, the solar cell manufacturing capacity needs to be significantly augmented.  

Gyanesh Chaudhary, Chairman and Managing Director (CMD) of Vikram Solar, said the company is “betting big” on a solar cell manufacturing capacity of 12 GW by FY27.

“Currently, India has a very small capacity for cell manufacturing. If you see the operating capacity, it is further lower. To mitigate this, cell manufacturers have to come into play. Vikram Solar is betting big with 12 GW of cell capacity. This will significantly enhance our revenue as well as profitability in the years to come,” the top executive told NDTV Profit. 

Beyond its core solar panel business, Vikram Solar is also venturing into the nascent, but promising field of battery energy storage systems (BESS). Chaudhary expressed enthusiasm about the technology’s potential to make solar energy available round-the-clock.

“Now, with battery energy storage, what we have seen globally, whether it is Germany or China, and now India, is that there is a phenomenal scope to use solar energy 24 hours of the day. We will also be working toward building those manufacturing plants and coming up with new products and solutions.”

He addressed long-term concerns about market saturation, given the 25-year lifespan of photovoltaic cells and India’s single-digit power demand growth.

“As far as demand goes, we are sitting on the cusp of a huge demand growth and not just in India, but globally too. We are number three in terms of global deployment of solar,” the CMD emphasised.

He added that “demand is surging phenomenally throughout Europe, Australia and the Middle East, as well as the United States.”

"There is a shift away from China with respect to the supply chain. There is a policy positivity, and there is a demand surge," he said, 

The CMD indicated the company anticipates "healthy growth in margins” over the next couple of years. He attributed this positive outlook to new capacities coming online and a focus on swift execution.

"We have deployed the best technology providers, service providers with the likes of L&T, to help us execute projects in record time. And I think that will drive our margins to a new high," he stated.

The company launched its initial public offering (IPO) worth Rs 2,079.37 crore on Aug. 19. The IPO was subscribed more than four times on the third day of bidding as of 11:11 am.

The mainboard IPO will close for bidding on Aug. 21. The IPO listing date has been tentatively fixed as Aug. 26.