Vikram Solar Unlisted Share

If you’ve ever been to Kolkata airport, you’ve probably noticed its impressive 15 MW solar installation, the largest at any AAI airport. Thanks to Vikram Solar, the Netaji Subhas Chandra Airport now fulfills its entire power demand with electricity generated by this massive solar panel setup. Vikram Solar is one of the largest solar panel brands in India.

Vikram Solar Limited (VSL), founded in 2006 and based in Kolkata, India, is a leading provider of solar energy solutions. Led by Mr. Hari Krishna Chaudhary and Mr. Gyanesh Chaudhary, VSL specializes in the design, manufacturing, installation, and maintenance of photovoltaic (PV) modules and solar power systems. With manufacturing facilities in Falta Special Economic Zone (FSEZ) in West Bengal and Chennai, VSL has significant production capacities, allowing it to export high-quality PV modules worldwide. Additionally, VSL is engaged in engineering, procurement, and construction (EPC) projects for solar power plants, including a notable 10 MW solar power plant with a long-term agreement with the Tirupati temple, emphasizing its dedication to sustainable energy solution.

Vikram Solar's Journey

2005: Incorporation Vikram Solar begins its journey towards revolutionizing India’s solar energy landscape.

2011: Early Milestone Installed a 3 MW project under the National Solar Mission of India, marking a significant step forward in renewable energy implementation.

2013: Landmark Achievement Contributed to the solarisation of the first fully solarised airport in India – Cochin International Airport, Kerala, showcasing the potential of solar energy in large-scale infrastructure projects.

2014: Recognition and Innovation Earned the distinction of being India’s only Tier 1 module manufacturer and commissioned India’s first floating solar plant, demonstrating innovative approaches to solar energy deployment.

2015: Scaling Production Reached a production capacity of 500 MW/year, signaling substantial growth and commitment to meeting the rising demand for solar energy solutions.

2017: Industry Leadership Achieved a significant milestone by reaching a production capacity of 1 GW/year, solidifying its position as a leader in the Indian solar industry.

2019: Expansion and Impact Commissioned a 200 MW plant in Andhra Pradesh and East India’s largest single shed rooftop project, totaling 2.15 MW, contributing to both utility-scale and distributed solar energy generation.

2021: Scaling New Heights Reached a production capacity of 2.5 GW, firmly establishing itself as one of India’s largest solar module manufacturers, driving the nation’s transition towards clean and sustainable energy sources.

Vikram Solar's Extensive Domestic Network

With an extensive domestic presence, Vikram Solar operates across 23 states and 3 union territories in India, supported by a robust network of 42 distributors, 56 trusted resellers, and 97 empanelled system integrators

Global Expansion

Vikram Solar has expanded globally with a sales office in the USA and a procurement office in China. They’ve supplied solar PV modules to clients in 32 countries. Domestically, key clients include NTPC, Rays Power Infra, and Hindustan Petroleum, while internationally, they serve companies like Amp Solar Development Inc and Safari Energy LLC.

Business Division

1. Solar PV Module Manufacturing:

Vikram Solar manufactures high-efficiency solar modules using both monocrystalline and polycrystalline cell technology. Their products can be categorized based on the use of solar cell technology and cell size.

2. Solar EPC and Rooftop Solutions

Vikram Solar stands as one of India’s top five Engineering, Procurement, and Construction (EPC) players, leveraging over a decade of experience and a robust portfolio comprising more than 300 projects as of March 31, 2024. The company’s proficiency in executing EPC projects for solar plants is widely acknowledged, cementing its prominent position within the industry. Vikram Solar’s capabilities span the entire project lifecycle, encompassing concept development, engineering, execution, commissioning, and ongoing operations and maintenance.

3. Operation and Maintenance Services

Over the years, Vikram Solar has established a sustainable O&M business division to provide customers with forward-integrated full life cycle services. Their O&M services include repairs, ongoing maintenance, and complete operational solutions. These services are primarily offered for executed EPC projects as bundled value-add services. Vikram Solar provides these services across India and to clients in industries such as railways, airports, hospitals, defense, and automobile.

Brand Portfolio

Vikram Solar doesn’t just make solar panels – they also provide complete solar energy solutions. They’ve built over 300 solar plants and are currently working on more, totaling 1.42 GW in capacity. Plus, they take care of these plants even after they’re built, offering maintenance services for over 900 MW of solar energy projects.

They’re also big on rooftop installations, having completed over 190 projects across different areas and industries, including some impressive ones like a massive 5 MW solar carport at Maruti Udyog Limited. To make sure everything runs smoothly, they’ve sorted out their supply chain, making it easier to get the materials they need on time and at a good price.

Manufacturing Units and Expansion

1. Tier 1 Manufacturer: According to Bloomberg New Energy Finance's 2020 report, Vikram Solar is classified as a Tier 1 solar PV module manufacturer.
2. State-of-the-Art Equipment: The company utilizes advanced manufacturing equipment imported from the US, Germany, Japan, and Switzerland to ensure high-quality production.
3. In-House R&D Facility: Vikram Solar maintains an in-house research and development facility to stay ahead of industry trends and incorporate cutting-edge technology into their panels.
4. Production Capacity: Upgraded manufacturing unit's production capacity surpassed the 1 GW mark in 2017, currently standing at 1.2 GW, positioning the company among the top manufacturers.
5. Geographical Location: The manufacturing unit is located near Kolkata, facilitating efficient operations and logistics.
6. Expansion Plans: Vikram Solar has signed an MoU with the Tamil Nadu state government to establish another 3 GW manufacturing unit in the state over the next five years, demonstrating its commitment to expansion and growth.

Awards and Recognitions

The company’s work in producing solar modules and providing EPC services has earned it several accolades and certifications from various organizations. The company won the 2019 Soft Disk Awards’ “Solar Manufacturer of the Year” honor. The EPC award for “Outstanding contribution in renewable energy” has also been won by them. Additionally, they have won two years in a row as India’s most chosen brand for solar and customer passion. Here is a list of awards that is more thorough.

Management of the Company

Financial Highlights

₹ in crores

Revenue Breakup

Industry Overview

Global Solar PV Market Forecast

The global solar market is expected to grow at a faster pace over the next five years due to higher global renewable
installations driven by the stronger policy support and ambitious climate targets announced for COP26. The International
Energy Agency (IEA) forecasts that global solar capacity additions could reach approximately 1100 GW between 2021 and
2026, averaging 181.4 GW per year, nearly double the rate (93.5 GW) over the preceding five years.

Indian Solar Market

As India announced to reach 280GW in solar power, the
domestic solar market has the potential of an additional 230
GW of solar installations over the next nine years which is
approximately 25 GW per year. In line with this ambitious
goal, the government of India proposed an additional
allocation of `19,500 crore for the Production Linked
Incentive for the manufacturing of high-efficiency modules
in the Budget 2022-23.

Key trends influencing the solar sector:

• Ambitious climate change targets by major countries across the world.
• Large market opportunity led to many new players.
• Innovation in solar is driven by demand for highly efficient modules and emerging customer needs.
• Short-term price pressure on solar PV manufacturers due to rising commodity prices.

Vikram Solar’s Response

To capitalize on the market opportunity, the company prioritized these focus areas:

• Boosting sales by tapping into high potential markets.
• Ramping up production capacity and innovation to meet growing demand and emerging needs.
• Accelerating digitization to improve operation efficiency and customer experience.
• Enhancing process control to reduce cost.

Fundings and IPO Plans

December 19, 2023: Vikram Solar Ltd secured $200 million in funding from the US International Development Finance Corporation (DFC) for its 3 GW cell and module manufacturing plant in Gangaikondan, Tamil Nadu, through a retainer letter.  Additionally, there is a possibility of pre-IPO share sales amounting to Rs. 300 crores, which could alter the initial plan. Anil Chaudhary, Girish Kumar Madhogaria, Pushpa Madhogaria, and Vikram India Ltd. are among the entities selling shares. JM Financial Limited and Kotak Mahindra Capital Company Ltd. are the main companies facilitating the process.

Vikram Solar planned to raise Rs. 2000 crores through an IPO.
• Fresh Issue: Rs. 1500 Crs
• Offer for sale: 5 million shares
• DRHP Filing: 6th March 2022

Objective of the Issue

The proceeds from the issue will be used for : 

1. Worth Rs.1,238.80 crore funding capital expenditure for setting up 2000 megawatts integrated solar cell and solar module manufacturing facility at Tamil Nadu through its wholly owned arm VSL Green Power Pvt Ltd.
2. General corporate purpose.

As of MARCH 12, 2024: Vikram Solar is in talks to raise Rs 600 crore-800 crore in a pre-IPO round from family offices and high net worth individuals.

Vikram Solar: Key Strengths

1. Experienced Management and Established Relationships
2. Healthy Order Book Position
3. Positive Industry Outlook
4. Significant Improvement in Performance

Vikram Solar: Key Weaknesses

1. Moderate Financial Risk
2. Working Capital Intensity

Peer Comparison

₹ in crores (FY2023)

Risks

1. Vikram Solar’s success depends on how well it can build new factories and make more solar panels without spending too much money. This can be risky and uncertain.
2. The company might not get the benefits of some government policies, like the PLI scheme, which could affect its business.
3. Vikram Solar does not have long-term agreements with the people who supply them with materials to make solar panels. This means they could face problems if these materials become hard to get.
4. The company makes most of its money from selling one main product.
5. If the prices of the things they need to make solar panels, like wafers and solar cells, change a lot, it could affect Vikram Solar’s business.

Vikram Solar Annual Report 2021-22

Vikram Solar Annual Report 2020-21