Vikram Solar, a well-known company in India’s solar energy sector, is gearing up to expand into the battery energy storage systems (BESS) market. This move, announced by the company’s Chairman and Managing Director Gyanesh Chaudhary, aims to broaden the firm’s presence in renewable energy.
Vikram Solar BESS Plans
Chaudhary shared his enthusiasm for this new venture, seeing it as a natural progression from their solar expertise. “We’re committing to BESS,” he said. “Starting with a 1 GW facility soon, with plans to scale up to 10 GW or beyond.” This step reflects the company’s strategy to adapt to the changing energy landscape and capitalize on global trends towards integrated renewable solutions.
IPO and Financial Strategy
Vikram Solar has taken steps towards an IPO, filing its issue papers with the Securities and Exchange Board of India (SEBI) to raise INR 1,500 crore. This includes new shares up to INR 1,500 crore and an Offer for Sale of 17.45 million shares by the promoters. There’s also a possibility of issuing securities worth INR 300 crore before the IPO.
The funds will be used as follows:
- INR 793.36 crore for capital investments in VSL Green Power to set up a 3,000 MW solar cell and module manufacturing facility.
- INR 602.95 crore to boost the existing solar module manufacturing capacity from 3,000 MW to 6,000 MW.
- The rest is for corporate needs.
In November 2024, Anil Patni was appointed as Director of Corporate Affairs, bringing over 35 years of experience in corporate strategy and communications to the table.
Manufacturing Expansion
Currently, Vikram Solar boasts a 3.5 GW capacity for solar PV modules, with facilities in Falta SEZ, Kolkata, and Oragadam, Chennai. Here’s what’s coming:
- A new 3 GW plant in Gangaikondan, Tamil Nadu, for both solar cells and modules. The module plant will start in 2025, and the cell plant in 2026.
- An aim to reach 10.5 GW by FY26 and 15.5 GW by FY27.
The company operates across 23 states and three Union Territories in India, exporting to 39 countries with offices in the US and China. The company’s order book stands at 8,214.63 MW, including significant projects like a 397.70 MW deal with NTPC Renewable Energy and a 1 GW contract from a JSW Energy subsidiary.
Since 2014, BloombergNEF has ranked Vikram Solar as a Tier 1 manufacturer, highlighting its dedication to quality and environmental stewardship. The company aligns with the UN Global Compact and has its climate targets validated by the Science Based Targets Initiative (SBTI).
The planned 3 GW facility in Colorado, USA, depends on the policy direction of the new US administration. Chaudhary noted the impact of the Inflation Reduction Act under President Joe Biden, but future plans hinge on President-elect Donald Trump’s policies.
Policy Expectations
Chaudhary emphasized key policy changes needed from the Indian government:
- The SEZ Amendment Bill to rejuvenate unused capacities in special economic zones.
- Stricter enforcement of Renewable Purchase Obligations to bolster the green economy.
- Better financial support for scaling up solar manufacturing.
Conclusion
Vikram Solar’s entry into BESS is a pivotal move, aligning with its expansion plans, IPO strategy, and new leadership roles. As the world leans more into sustainable energy, this company is set to lead in India’s green energy shift, showcasing a blend of innovation, strategic foresight, and practical action.
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