Grew Energy explores sideways integration amid aggressive expansion plans

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Grew Energy explores sideways integration amid aggressive expansion plans

Grew Energy explores sideways integration amid aggressive expansion plans

Industry News
Jan 22,24

Grew Energy secured a Rs 567 crore incentive from the central government for a solar equipment manufacturing facility under the Production Linked Incentive (PLI) scheme.

Grew Energy explores sideways integration amid aggressive expansion plans

Gujarat-based solar module manufacturer Grew Energy, a division of the $1 billion Chiripal Group, is considering the establishment of manufacturing facilities for solar glass and Ethylene Vinyl Acetate (EVA) sheets, in addition to its ongoing module manufacturing projects, if deemed necessary, according to Vinay Thadani, the company's Director.

Grew Energy secured a Rs 567 crore incentive from the central government for a solar equipment manufacturing facility under the Production Linked Incentive (PLI) scheme. The company is executing an integrated project, encompassing ingots, wafers, cells, and modules, with a 2 Gigawatt capacity.

This project is unfolding in three phases, with the initial two phases situated in Jaipur, Rajasthan. The first phase, featuring a 1.2 GW module manufacturing capacity, was operationalised in September 2023. As part of the second phase, Grew Energy is establishing a 1.6 GW module manufacturing capacity, increasing its total module capacity to 2.8 GW upon completion.

Director Vinay Thadani acknowledged the substantial reliance on China for module manufacturing, primarily due to the procurement of cells. He highlighted challenges faced by the company in sourcing certain raw materials where Indian suppliers struggle to compete with their Chinese counterparts.

In an effort to enhance Local Value Addition (LVA) and achieve a 65% domestic procurement target in total value addition by March 2026, Grew Energy, like other local manufacturers, is considering sideways integration for materials crucial in module manufacturing, such as glass, Aluminium frame, and EVA sheets.

Thadani stated that the company is planning to develop a comprehensive ecosystem in Dholera and might set up manufacturing units for glass and EVA backsheet, contributing 10% each to the module manufacturing cost, if challenges arise in procurement or meeting the desired LVA factor. The ongoing capacity setup for cells and wafers constitutes 50-60% of the total cost.

With ambitious capital expenditure plans amounting to Rs 6,000 crore, the funding will follow a 2:1 ratio, with the equity portion of approximately Rs 2,000 crore originating from the promoter and equity partners.

Source: ET