Waaree denies predatory pricing in US amid anti-dumping probe

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In light of the ongoing anti-dumping investigation initiated by authorities in the US, top solar module exporter Waaree Energies refuted claims of predatory pricing to expand business in the region.

Waaree currently exports 44 percent of its manufactured modules, a key component for solar panels, and the US is one of its key markets.

"We are an Indian company listed on Indian stock exchanges. Our accounts are transparent, audited and available to anyone who is interested. We have a bevy of investors who expect a certain level of profitability from us. We ourselves drive the business to ensure we maintain healthy profitability—which we already do. We have an EBITDA (earnings before interest, taxes, depreciation and amortisation) guidance that we have made public, and we continue to stand by it. So, with all of that in place, we really have no room for any predatory pricing," chief executive officer Amit Paithankar told Moneycontrol in an exclusive interview.

The comments come as a group of local solar panel manufacturers in the US filed a petition alleging that companies in India, Indonesia and Laos are dumping cheap goods in the market to disrupt new American factories' business.

Currently, Waaree operates a 1.6 GW production capacity  in Brookshire, Texas. While it has a local presence, some modules are exported from India too. When asked about the breakup, Paithankar said that the number fluctuates often, depending on local policies.

" A fair proportion of what the US requires is actually going from India and a good amount is going from the US as well. These proportions will keep changing over a period of time depending on the various policies that exist in the US and India," he said.

Any ADD (anti-dumping duty) won't be applied on the products sent from the local facility, Paithankar explained. However, exports from India still face the risk of duties if the authorities decide in favour of the local producers.

"I'm sure that the relevant authorities will have ample of data in the public domain as well as directly from us and we should be in a position to establish that there is no predatory pricing," Paithankar added.

According to reports, the petition is the latest effort by the small solar manufacturing industry in the US to seek trade relief to protect billions of dollars of recent investment and compete overseas with goods produced mainly by Chinese companies.

The Alliance for American Solar Manufacturing and Trade, which filed the petition, includes Tempe, Arizona-based First Solar, Qcells, the solar division of South Korea's Hanwha , and private companies Talon PV and Mission Solar, Reuters reported.

Bullish on US market 

Despite the ongoing uncertainties around IRA (Inflation Reduction Act) benefits, Waree is going ahead with its plans to double the capacity at its existing manufacturing facility in the US.

"The 45x tax credits haven't been repealed, the dates have just been brought forward. But for the next two to three years, they are very much available," Paithankar said.

"We are actually looking at 100 gigawatts of pipeline. So there is a fair amount of that pipeline in the US, a fair amount of that pipeline in India," he added.

On July 28,  the module maker  reported an 89 percent increase in consolidated net profit at Rs 745 crore for the quarter ended June 30. Its consolidated net profit was Rs 394 crore in the year-ago period. As of June 30, its order book stood at Rs 49,000 crore, according to its investor presentation, with about 2.3 GW of orders from US customers.

It expects  US solar capacity  to grow to 500 GW by 2030 with 11 GW added in Q1 of 2025.

As of July 29, stock was up about 11 percent since the beginning of the year.