With a standing of over 27 years, Gautam Solar is a reputed domestic solar module manufacturer that has now planned backward integration into solar cells. In this interaction, we have Gautam Mohanka, Managing Director & Chief Executive Officer, Gautam Solar Ltd, telling us more on the company’s Rs.1,000-crore capex programme that will be co-financed through an initial public offering (IPO) of equity shares. Mohanka is confident that Gautam Solar will contribute significantly to India’s 500-GW renewable energy capacity target, whilst fully supporting the “Make in India” philosophy.
We understand that Gautam Solar is expanding its solar module capacity to 5 GW. What is the present status of this expansion plan, and what is your existing module manufacturing capacity?
Currently, our annual solar module production capacity is 2 GW, and we are aggressively working on expansion strategies to achieve the 5 GW mark by 2025. In pursuit of doubling down our efforts, we plan to raise Rs.1,000 crore through an initial public offering (IPO) in the next 12-18 months. This funding is specifically meant for our new 2-GW solar cell manufacturing project. The expansion will occur in three phases, with the first phase set for completion by the end of 2024, followed by the second and third phases in January and April 2025, respectively.
Currently, where are you largely sourcing solar cells from?
At present, Gautam Solar sources the majority of its solar cells from domestic and international suppliers, with a strategic emphasis on high-quality, efficient cells that align with our module manufacturing standards. However, with our new solar cell manufacturing plant underway, we aim to significantly reduce dependency on external sourcing and achieve greater self-reliance.
Tell us more about the Rs.1,000-crore capex plan that includes backward integration into solar cells.
Moreover, by strengthening its domestic production of solar components, Gautam Solar reinforces its commitment to the ‘Vocal for Local’ and ‘Make in India’ missions, supporting India’s economic growth and energy independence.
India has targeted to achieve 500 GW of RE capacity by 2030, largely driven by solar power. How equipped are we to attain the targeted solar capacity through domestically sourced cells and modules? Please discuss.
India’s solar manufacturing sector primarily involves assembling solar modules using imported cells, with only 15 per cent of value added locally. According to a report by think tank GTRI, this reliance on imports could escalate the country’s solar equipment import bill to approximately $30 billion annually as it pursues its target of installing 500 GW of renewable energy capacity by 2030.
This heavy dependence, particularly on Chinese goods, underscores the need for substantial investment to establish a self-reliant solar manufacturing ecosystem. Key areas like polysilicon and wafer production must be developed to create an integrated supply chain. Without such measures, India risks enduring high import costs and falling short of its renewable energy objectives.
How effective have PLI schemes been to boost local capacity of solar power equipment?
In general, how do you see the inclination of C&I customers to go in for rooftops and grid-scale captive plants?
Faced with rising tariffs and escalating operating costs, commercial and industrial (C&I) consumers are increasingly turning to renewable energy solutions, such as rooftop installations or open access, to reduce production expenses. This growing demand creates significant opportunities for renewable energy (RE) installations and allows RE providers to expand their market presence.
It is widely believed that solar power capacity would be most effective if supported by grid-scale battery energy storage systems (BESS). How do you view the situation in the Indian context?
Additionally, initiatives like the National Energy Storage Mission and Production-Linked Incentive schemes for battery manufacturing are steps in the right direction. Thus, incorporating BESS with solar power is essential for India’s reliable, resilient, and sustainable energy future.
Given that Gautam Solar is present in a very vibrant and dynamic area like solar energy, especially in the Indian context, how do you see the years ahead for the company?
Gautam Solar is unique in its 100% Made in India, 27+ years of solar experience, multiple well-established factories, an in-house R&D team, ISO9001, ISO14001, MNRE accreditation, UV-proof certificate, and IP-65 rating.
As India targets achieving 500 GW of renewable energy by 2030, our expansion to 5 GW of solar module manufacturing capacity by 2025 is a vital step towards contributing to this national goal. Currently, India’s solar module manufacturing capacity stands at around 70 GW, and with this expansion, Gautam Solar will account for nearly 7 per cent of the country’s total capacity.
All industrial photographs seen in this interview relate to Gautam Solar’s module manufacturing facility.
