Waaree Energies Starts Commercial Production From Its First US Solar Plant
The factory has been built with floor space and utilities that can ramp up to a capacity of 3 GW.
Waaree Energies Ltd. has started the commercial production of 1.6 GW of solar-panel capacity in India and the company's first US-based solar panel manufacturing plant.
NDTV Profit had reported on Nov. 26 that the company plans to start the commercial operations from the US plant by the end of December or January. This plant holds importance for the solar manufacturer as it would help them cater to a large US market, which can source raw material from its Indian parent, especially when there are anti-dumping measures against Chinese imports in the US.
Earlier on Dec. 19, the company had announced that it had started trial production from the US plant.
The US is one of the major importers of solar panels from India and in the last couple of years, the exports of panels have risen largely on demand from the US and the European countries. Waaree Energies is one of the major exporters.
Exports help Indian companies derive higher margins compared with sales in India on account of high imports from China and Taiwan, despite a 40% customs duty on solar panels and 15% on solar cells.
In the first phase, Waaree aims to commission 1.6 GW capacity and then take it to 3 GW by 2027. The long-term aim is to create a 5 GW capacity.
The factory has been built with floor space and utilities that can ramp up to a capacity of 3GW.
The company is, overall, quite positive about the US market and the policy evolution and plans to backward integrate and enter solar cell manufacturing in the coming years. Waaree is keen to reverse integrate and come up with a 5GW cell factory in the US as well.
The scrip fell as much as 11.64% to Rs 2,362.25 apiece, the lowest level post its listing day. It pared losses to close 9.29% lower at Rs 2,425.10 apiece, as compared to a 0.57% advance in the NSE Nifty 50 Index.
It has risen 3.69% since listing. The relative strength index was at 35.33.
One analyst tracking the company suggests 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 5.2%.
