Indian solar module manufacturer Gautam Solar is poised to significantly expand its production capabilities as it seeks to enhance its position within the renewable energy sector. The company plans to raise approximately Rs10 billion (equivalent to $118 million) through an initial public offering (IPO) aimed at funding the establishment of a new solar cell manufacturing unit. This initiative, as reported by the Financial Express, is part of a broader strategy to increase manufacturing capacity from the current 1 gigawatt (GW) to an ambitious 5 GW by April 2025.
Gautam Solar's managing director, Gautam Mohanka, outlined the company's growth plans, stating that "right now we are at a 1GW capacity of solar modules and we have taken a 60-acre land parcel in Bhiwani [Haryana]. We aim to be 5GW by April 2025." The company's expansion is structured in phases, with pilot production having commenced on November 12, and additional production lines expected to boost capacity to 3 GW by January 2025.
The new site has the potential to accommodate up to 12 GW, indicating that Gautam Solar is not only focused on immediate growth but is also laying the groundwork for future expansion. Mohanka pointed out the scalability of their operations, noting, "if the market demand is strong, we’re prepared to add 1GW per month next year." Achieving each additional GW of manufacturing capacity would necessitate an investment exceeding Rs1.5 billion.
While Gautam Solar is currently relying on internal funds to support its expansion efforts, it is also contemplating an IPO within the next 12 to 18 months to secure additional financing. Mohanka expressed an interest in exploring various states for government incentives and infrastructure assistance to further bolster the company's growth.
Financial forecasts signal a robust trajectory for Gautam Solar, with the company aiming to double its revenue from Rs7.2 billion in the fiscal year 2024 to Rs14 billion. This ambitious growth outlook aligns with a broader market trend towards increased domestic manufacturing spurred by Indian government policies, which target an annual tendering of 50 GW as part of initiatives to indigenise renewable energy supply chains.
Looking ahead, Gautam Solar is also exploring opportunities in emerging sectors such as green hydrogen and independent power production. Furthermore, the company is monitoring the potential for exports, particularly to the US market, as a significant area for future growth. Mohanka noted, "if the US market proves favourable post-Trump, we may look into exports as a priority."
This strategic positioning highlights Gautam Solar's commitment to not only enhancing its manufacturing capabilities but also aligning with global energy trends and market demands, as it seeks to become a key player in the solar industry both domestically and internationally.
Source: Noah Wire Services