Vikram Solar’s 20-Year Legacy in Powering India’s Renewable Energy Growth

Over the past 20 years, Vikram Solar has evolved to become one of India's leading solar energy solution providers. With a commitment to advancing the country’s renewable energy goals, the company has positioned itself as a key player in both domestic and international markets, steadily contributing to India’s ambitious target of achieving 500 GW of renewable energy capacity by 2030. From manufacturing solar modules to fostering a robust ecosystem, Vikram Solar’s journey has been marked by steady expansion, innovation, and a focus on sustainability.

A Vision Rooted in India’s Renewable Growth

India’s renewable energy sector has made significant strides in recent years, with solar power leading the way. As of March 2024, the country had achieved a threefold growth, reaching approximately 191 GW of renewable energy capacity, with solar contributing 82 GW. To meet the 500 GW target by 2030, further investments and innovations are required, particularly in areas like battery storage and energy transmission. Vikram Solar, with its manufacturing footprint and strategic forward-thinking, is preparing to meet the surging demand.

The company plans to establish new manufacturing facilities in Tamil Nadu, which will significantly increase its solar module capacity, taking it from 3.00 GW to 6.00 GW. This move, alongside the expansion of its existing plant in Falta, West Bengal, highlights the company’s readiness to play a pivotal role in meeting India’s growing renewable energy needs.

A Global Presence, with a Domestic Focus

Vikram Solar’s reach extends beyond India’s borders, exporting to over 39 countries, including the United States, Belgium, Germany, United Kingdom, Greece, Italy, Spain, Finland, Ireland, and the UAE. This global footprint is supported by a network of international offices amidst a growing demand for sustainable energy solutions. The company is particularly well-positioned to leverage the increasing demand for solar PV recycling, which is gaining traction in markets like the U.S. and Europe.

Domestically, Vikram Solar’s extensive network of distributors, dealers, and system integrators spans across 23 states and three union territories. The company’s strong presence in India’s solar market is reinforced by its commitment to capitalize on government initiatives, such as the PM Suryoday Yojana, which aims to provide solar solutions for millions of homes, MSMEs, and farmers.

Technological Innovation at the Core

Vikram Solar’s approach to innovation has been key to its two-decade-long success. By embracing emerging technologies such as bifacial modules, N-TOPCon cells, and HJT (Heterojunction Technology), the company has consistently been providing energy-efficient solutions that cater to evolving market demands.

The company’s strategic investments in research and development play a pivotal role in advancing these technologies. Further driving innovation is the company’s Centre of Excellence (COE) at its Falta facility. Equipped with a Digital Twin feature, this COE enables real-time simulations that replicate physical processes, helping to optimize manufacturing processes and improve overall operational efficiency. The incorporation of methodologies such as Six Sigma, Kaizen, and Lean ensures that Vikram Solar’s products are not only innovative but also consistently meet the highest standards of quality. This facility aims to enhance operational efficiency, and ensure top-tier quality across its research, development and testing. Coupled with an expanding R&D focus, Vikram Solar is not just meeting today’s energy needs but is preparing for the future of integrated renewable energy solutions.

Strategic Backward Integration to Strengthen the Supply Chain

A key element of Vikram Solar’s long-term strategy has been its focus on backward integration. The company is actively building its capacity in the solar value chain to reduce reliance on external suppliers and mitigate supply chain risks. This is exemplified by its decision to set up a 3.00 GW solar cell manufacturing facility in Tamil Nadu, which will enhance its ability to meet the increasing demand for solar modules, especially those required for Domestic Content Requirement (DCR) government schemes.

This move towards backward integration will enable the company to optimize its margins by manufacturing critical components in-house, reducing dependence on imported materials. In addition, the company is taking steps to further bolster its supply chain by developing a Vendor Park at its Tamil Nadu facility. This park will co-locate suppliers of key raw materials such as aluminium frames, encapsulants, and junction boxes, fostering closer collaboration and improving inventory management, transportation, and quality control. The Vendor Park is expected to play a crucial role in streamlining the supply chain and supporting the company’s ongoing efforts to scale production.

By integrating key stages of the solar value chain, Vikram Solar seeks to handle increasing demand efficiently while ensuring that its products maintain the highest standards of quality and performance.

Vikram Solar’s journey over the past two decades has been one of growth, resilience, and a deep commitment to sustainability. As India pushes toward its bold renewable energy targets, Vikram Solar’s expertise in manufacturing, and strategic expansion plan ensures its continued role in shaping the future of solar energy. Through technological advancements, backward integration, and a focus on quality, the company is not just contributing to the renewable energy movement but is helping drive it forward.

Disclaimer

Vikram Solar Limited ("Company”) is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to make an initial public offer of its equity shares and has filed a draft red herring prospectus (“DRHP”) with Securities and Exchange Board of India (“SEBI”) and the stock exchanges. The DRHP is available on the websites of the Company at www.vikramsolar.com, SEBI at www.sebi.gov.in as well as on the websites of the book running lead managers, JM Financial Limited at www.jmfl.com, Nuvama Wealth Management Limited at www.nuvamawealth.com, UBS Securities India Private Limited at www.ubs.com/indiaoffers, Equirus Capital Private Limited at www.equirus.com and PhillipCapital (India) Private Limited at www.phillipcapital.in and the websites of the stock exchange(s) at www.nseindia.com and www.bseindia.com, respectively. Any potential investor should note that investment in equity shares involves a high degree of risk and for details relating to such risk, see "Risk Factors" of the DRHP. Potential investors should not rely on the DRHP for any investment decision.

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