Several Indian solar manufacturers, having delved into solar module and cell production, are now expanding into in-house aluminium frame manufacturing, a crucial component of solar modules. Among them, Premier Energies, a prominent producer of solar modules and cells, has pledged an investment of INR 230 crore for this new initiative.
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Premier Energies to establish new facility
For this, the Indian solar cell and module manufacturer plans to establish a facility with an annual capacity of 36,000 metric tonnes for captive consumption. As of March 31, 2024, Premier Energies is India's second-largest integrated solar PV manufacturer, boasting an annual installed capacity of 2 GW for cell manufacturing and 4.13 GW for module manufacturing.
"We are also pleased to announce today our foray into aluminium frame manufacturing business by setting up a 36,000 metric ton per annum facility for captive consumption. This project would require a capex of INR230 crores, wherein the equity portion of 25% will be funded through internal accruals. This investment into aluminium frame manufacturing will improve our EBITDA margin by 100 basis points to 150 basis points," stated Chiranjeev Saluja, MD of Premier Energies.
Agreement with a Taiwanese firm
Premier Energies has agreed with a Taiwanese firm to establish this wafer manufacturing unit, with equipment already in order. Saluja further mentioned that the company intends to move into ingot manufacturing once stabilising the wafer line.
In Q2 FY25, Premier Energies reported revenue of INR 1,553.59 crore, reflecting a 121.4 per cent year-on-year increase from INR 701.81 crore in Q2 FY24. The profit after tax for the quarter was INR 205.95 crore, representing a 289.6 per cent rise compared to INR 52.86 crore in the same period the previous year.
Saluja highlighted that Premier Energies is expanding its TOPCon cell line with a 1 GW project, anticipated to be completed by the fourth quarter of fiscal year 2025. Furthermore, the company aims to leverage opportunities for backward integration by investing in a 2 GW wafer manufacturing facility, which is expected to be commissioned by fiscal year 2026.
Other manufacturers stepping into aluminium frame production sector
Joining Premier Energies, other key manufacturers are stepping into the aluminium frame production sector. Insolation Energy aims to produce aluminium frames with an initial annual capacity of 12,000 metric tonnes (MT). It plans to double this to 24,000 MT within three years, as Chairman Manish Gupta shared with Saur Energy.
GenX PV, known for supplying solar accessories like junction boxes, is set to manufacture 18,000 MT of aluminium frames annually at its Raipur facility. Saatvik Solar's CEO, Prashant Mathur, also disclosed plans for diversifying into aluminium frame production during an interaction with Saur Energy. Additionally, Alpex Solar has announced its intention to enter this new segment.
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