Polycab India, the country’s largest manufacturer of wires and cables is supporting India’s green energy ambitions. Marking its diversification is a two-pronged strategy. One, Polycab is manufacturing a wide range of solar energy-centric products, and two, the company is tapping solar energy for captive use as its manufacturing sites. In this exclusive interaction, we have Anurag Agarwal, Executive President-Strategic Initiatives & International Businesses, Polycab India, taking us through Polycab’s solar energy initiatives. Anurag highlights that the recent addition of solar off-grid and hybrid inverters, Solar street lights and other solar led products demonstrates Polycab’s agility to strengthen our bouquet of solar products.
It is nice to know that Polycab is developing competencies in the solar energy space by offering products and solutions. Please elaborate on the current bouquet of offerings.
Polycab India launched solar DC cables way back in 2012. We added solar on-grid inverters—starting from 1kW to 30 kW, which now is enhanced up to 255kW. Encouraged with the response we received and the demand we were getting from the market, we started off with solar PV panels both poly and mono. Recently we enhanced our offerings in this domain by adding offgrid, hybrid, BESS systems and solar LED lighting.
Are you planning to add more solar energy-centric products in the medium term?
Yes, the process is continuous as we wish to continue to strengthen our presence in the entire solar value chain.
What impact do you see arising from the imposition of basic customs duty (BCD) on imported solar cells/modules, which is likely to come into force effective April 2022?
It will be a great impetus to sales for the present players and the new players wanting to manufacture solar cells locally.
Limited local capacities will still force EPC players to import modules at higher landing cost thus impacting their input costs for projects. As this increase was anticipated by all in this industry all the players must have made provisions in their input costs. Overall, the project costs for setting up solar systems will rise.
“We wish to strengthen our presence in the entire value chain.”
Currently, from where is Polycab importing its solar modules? Assuming that China is on your supplier list, are you facing any adverse impact arising from China’s reported shutting down of manufacturing facilities to enforce lower electricity consumption, as we understand?
We are largely immune to China as far as PV modules are concerned as our entire manufacturing of modules is India-based. There have however been ripples of shipping delays and uncertainties of freight costs and sudden rising costs of solar cells quoted by Chinese and other countries suppliers. This volatility has shaken the complete industry leading to rising cost of modules with no indication of a fall in prices anytime soon.
May we presume that all solar energy-centric products made by Polycab – solar cable, DC MCB, inverter, etc – are using in-house technology and expertise?
Of course, for cables we are the market leaders and have strong R&D team. We do outsource technology for inverters.
We understand that Polycab has installed solar rooftop panels on its own manufacturing facilities. Tell us more. What is the estimated quantum of grid electricity that you expect to displace through these solar installations?
Polycab has installed a 5.4-mw rooftop solar plant at its Halol manufacturing plant in Gujarat. The expected volume of electricity that Polycab will displace from grid shall be 7,750 MWh per year. In fact, solar rooftop panels have been installed in Halol as well as Daman. The total annual generation is expected to be around 3,839 MWh and we hope to realize saving in electricity costs to the tune of Rs.1.65 crore per year.
“Polycab is already using more than 80 per cent of our requirement through green energy from wind, solar and other renewable sources.”
Does Polycab have a long-term plan of using only green energy for running its manufacturing facilities?
Polycab is already using more than 80 per cent of our requirement through green energy from wind, solar and other renewable sources. A part of it is owing to our windmills and solar rooftop installations, some PPAs we signed for long term and some renewable power we buy from power exchanges through the Open Access route. Largely we have complete allowable capacities for solar rooftops in our Daman and Halol manufacturing facilities. Gradually all our other manufacturing in Nashik (Maharashtra), Rourkee (Uttarakhand) and our warehousing facilities pan India will be running on solar, to the extent possible.
There is widespread debate on net and gross metering policies across various states. What is your overall view on the subject?
We accept the inevitable balancing act of the discoms of the individual states. Net metering up to certain 500kW of installation and balance under gross metering would somehow satisfy both parties.
“Polycab’s solar offerings have been well received nationwide.”
Also read: Wires & Cables: Polycab India Commands 20-22 Per Cent Market Share In FY21
At Polycab’s rooftop solar plants at Halol and Daman, did you face any issues with respect to net/gross metering policies?
No, we haven’t faced any issues as yet.
How has the market generally responded to Polycab’s solar energy products and solutions? What does the current order pipeline look like?
Polycab’s solar offerings have been well received nationwide. The quality of product offerings and excellent after-sales service has captured the perception of the user in favor of Polycab.
We are continuously getting encouraging signs of increased preference for Polycab’s solar on-grid and now off-grid inverters, panels, DC and AC cables and solar DC MCBs. We are sure of reaching greater heights in this rising sector to create an image of most preferred brand in the solar energy field.
Please discuss how Polycab’s strong brand reputation is helping the company’s foray in the solar energy business.
Polycab brand equity has gained confidence in the minds of end users as a manufacturer of quality products and has given assurance to the users of being with them to provide timely service. This has helped solar products to get an entry with the same expectation of high standards of products and services.
Kindly share Polycab’s future plans in the solar energy space in terms of addition to solar portfolio and adding of solar generation capacity at its own facilities.
Our focus will remain on being supplier of quality solar products through existing offerings as well as new and innovative offerings in solar for various applications of mass use. Solar generation at our own locations of manufacturing as well as warehouses and office buildings will be a continuing process. This will help us mitigate carbon footprint and contribute to the evolving green ecosystem.
