IndiGlobal Bureau
Waaree Energies Ltd with 90% of the investment from private investors and 10% from promoters has raised close to Rs 1,000 crore. The aim is to expand production capacity for solar modules and make an impact in the solar cell manufacturing, informed financial officer Hitesh Mehta.
“Investments usually come for the renewable generation business and not equipment manufacturing. This is the first time private investors have put in money into a company for manufacturing in India,” he added.
The company is planning to start manufacturing solar cells by September 2023 an dhas acquired 100 acres for the setting up of a new facility at Chikli in Navsari district in Gujarat. The plant will have production capacity of 7 GW of solar modules, and 5.4 GW of solar cell .Mr Mehta said that the funds will be used to ramp up module production from 5 gigawatt (GW) to 9 GW. Waaree will also explore options to raise debt to fund its expansion plans.
Demand for solar modules
Demand for solar modules and cells have been on the rise, but supplies have remained low in India. It may be noted that in March 2021, the Centre had announced a 40% basic customs duty on solar modules and a 25% duty on solar cells, effective 1 April 2022. The decision to increase duty was in line with the government’s stand on reducing dependence on imports, especially from China, and encourages domestic production.
Once the capacities are ramped up, the demand-supply mismatch would ease, said Mr Mehta. The increase in production is expected in the next 18 months. The company exports 20-24% of its production, mostly to Europe, Africa and Gulf countries. He said the company will look at maintaining exports at similar levels and may also consider partnering with interested firms in other countries.
Waaree had recently signed an agreement with Steinbeis Centre for Technology Transfer India and DSE Consortium Germany for green hydrogen. According to the MoU (memorandum of understanding), the three entities will establish an assembly line to produce electrolyzers and polysilicon. The company is also working on diversifying into green hydrogen production and battery storage solutions.
