Tata Power stock surges 6% after subsidiary commences solar cell production

Tata Power stock has gained around 33 percent so far this year, outperforming Nifty's returns of 16 percent.

Shares of Tata Power gained as much as 6 percent on September 10 as the company announced that a unit of its subsidiary has commenced commercial production of solar cells at India's largest single-location in Tirunelveli, Tamil Nadu, helping boost domestic manufacturing of cells and modules needed to convert sunlight into electricity.

"TP Solar, a subsidiary of Tata Power Renewable, which is a subsidiary of Tata Power Company, announced the commencement of commercial production from the 2GW solar cell line at its state-of-the-art manufacturing facility in Tirunelveli, Tamil Nadu—the country’s largest single-location solar cell & module plant," the company said in a regulatory filing.

The solar cell production, currently at 2 GW capacity will enhance Tata Power's ability to meet the growing demand for high-quality, and domestically produced solar components, especially for large-scale capacity-addition projects, Tata Power added.

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The plant is expected to ramp up production with the remaining 2 GW capacity to be added over the next 4-6 weeks, reaching peak production within the next few months. This follows the successful production of solar modules earlier this year.

Having a total cell & module manufacturing capacity of 4.3 GW, the module production line at the Tirunelveli plant was commissioned in October 2023 and has produced 1,250 MW of solar modules till date. The facility is equipped with advanced TOPCon and Mono Perc technology, enabling high-efficiency production of solar cells and modules, the company said.

Tata Power has committed nearly Rs 4,300 crore towards the establishment of this facility. The solar cells and modules produced at the Tamil Nadu facility will initially cater to the company's ongoing projects, further strengthening its supply chain. With an eye on future expansion, Tata Power also plans to explore opportunities for wider market distribution.

At 1:55 pm, Tata power shares were trading 5.8 percent higher at Rs 442.10 on the National Stock Exchange (NSE). The stock has gained around 33 percent so far this year, outperforming Nifty's returns of 16 percent. In the past 12 months, the counter has risen 62 percent. In comparison, Nifty rose 29 percent during this period.

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