Vikram Solar mulls expansion of solar module production capacity to 6.3 GW

Solar module maker Vikram Solar Ltd. is planning to more than double production capacity from 2.5 GW to 6.3 GW in the next two years.

As a part of its expansion plan, the company is establishing a new facility with 2 GW capacity in Tamil Nadu to manufacture solar photo voltaic (PV) modules. The facility will be backward integrated with a solar cell manufacturing capacity of 2 GW. At the site, located in Oragadam, Tamil Nadu, the company already operates a unit with manufacturing capacity of 1.3 GW.

Besides this, it runs a 1.2 GW capacity plant at Falta in West Bengal and is currently adding 1.8 GW capacity to take the total capacity in the State to 3 GW.

In addition, the company has submitted a bid under the Production Linked Incentive (PLI) scheme for high-efficiency solar PV modules to the Indian Renewable Energy Development Agency, which could add 1.6 GW capacity taking cumulative capacity to 7.9 GW.

The company has earmarked ₹1,238 crore towards capital expenditure for the proposed expansion from the fund raise through an IPO, according to its draft red herring prospectus filed with regulator SEBI.

“Our business is environmentally focussed and we strive towards facilitating a carbon-free future through the use of our solar PV modules, which is an environment-friendly method of power generation,” said Gyanesh Chaudhary, vice-chairman and managing director, Vikram Solar.

“We are one of the largest Indian solar PV module manufacturers with 2.5 GW, inclusive of trial production, having strong presence in domestic and international markets along with a large order book providing clear visibility on future growth,” he said.

The company has been in the business of manufacturing solar modules for last 12 years, and has developed engineering capabilities in producing high-efficiency PV modules, he said.

It has a sales office in the U.S. and a procurement office in China. The firm had supplied solar PV modules to customers in 32 countries, as of December 31, shipping more than 300 MW of solar PV modules internationally. Exports accounted for 15.8% of total revenue from operations in September 2021, as per the filing.