Not soliciting sales in US amid tariffs: Vikram Solar MD

Vikram Solar MD Gyanesh Chaudhary (Courtesy: X)

Kolkata-based solar module maker Vikram Solar is no longer soliciting sales in the US market as the ongoing tariff tensions have created uncertainty among the buyers, managing director Gyanesh Chaudhary told Moneycontrol in an exclusive interview on August 13.

The comment comes as the revenue share from US exports drastically reduced to 0.96 per cent of the total revenue in fiscal 2025, as compared to 61.1 per cent in fiscal 2024. The company said it may enter into OEM (original equipment manufacturers) partnerships in the United States to navigate these regulatory changes and the related operational challenges, according to its RHP filed on August 12.

When asked about the current demand scenario in the US, Chaudhary said, "While we still have customers to cater to, I think we'll have to give it some time to settle down. I'm still very positive about the overall US deployment of solar in spite of the narrative. We are currently not soliciting sales in the US. It's purely because of the volatility. Our customers are still connected with us. Nobody is clear on how to close deals ... It is also partly because of the uncertainty over the 50% tariff that we currently see."

In FY25, India’s exports of solar equipment in totality is expected to be around 7-8 gigawatts (GW), the majority of which went to the US.

The module maker, which currently has a sales office in the region, also had plans to set up a 3 gigawatt (GW) module facility in Colorado. However the plans seems to be on hold due to the uncertainty over crucial Inflation Reduction Act (IRA) benefits which allow companies to claim 30–70 percent of the project costs as tax credits.

"We are keenly looking at how the market evolves. We have been building the business plan for the last one year, but this is not the right time. As soon as it makes sense, around tariffs, sure that that's going to regain momentum and we will come out," Chaudhary added.

The company is looking to expand sales in the domestic market in expectations of matching the export premiums.

"Domestic sales now offer a better premium, and with the domestic content mandate, we expect them to match export premiums. The domestic market is still limited but will expand from next year," Chaudhary commented during the pre-IPO event held on August 13.

In India, the company booked highest sales in Gujarat, followed by West Bengal, New Delhi, Rajasthan and Madhya Pradesh.

The company plans to expand its manufacturing capacity to 15.5 GW of solar modules and 5 GW of solar cells by FY27, with new facilities being set up in Tamil Nadu.

"Beyond India, we see emerging opportunities in countries like Australia and, eventually, the US. We are actively building networks in these markets. Currently, we have presence in 39 countries, and exports remain an important part of our long-term strategy," he added.

The public issue for the solar manufacturer will open next week on August 19, with the public subscription open till August 21. The IPO anchor book for institutional investors will be launched on August 18 and the shares will be available for trading on the bourses effective August 26.

The IPO consists of fresh issuance of equity shares worth Rs 1,500 crore and an offer-for-sale of 1.7 crore shares by promoters. The company has set a price band of Rs 315 to Rs 322. The IPO price band is nearly 14% lower than the unlisted market price, a move Chaudhary says isn't a negative and is in the best interest of investors.