Oswal Pumps Limited has announced plans to establish a 1.2 GW solar cell manufacturing facility based on Tunnel Oxide Passivated Contact (TOPCon) technology, with commercial production expected to commence by April 2028.
The project will be developed by the company’s wholly owned subsidiary, Oswal Solar Energy Private Limited (OSEPL), as part of its strategy to strengthen backward integration and expand its presence across the solar energy value chain.
The proposed facility will involve an estimated investment of Rs 456 crore. Of the total project cost, approximately Rs 296 crore is proposed to be financed through debt, while Rs 159.85 crore will be funded through the company’s unutilised initial public offering (IPO) proceeds, subject to the requisite statutory and regulatory approvals, including shareholder approval.
The company plans to utilise the entire output from the new facility for captive consumption at OSEPL’s in-house solar module manufacturing lines. The proposed 1.2 GW capacity is expected to meet approximately 75% of the subsidiary’s overall solar cell requirements, with the remaining demand to be met through external sourcing in the near term.
The investment is aimed at securing a reliable supply of domestically manufactured solar cells, reducing exposure to spot-market price fluctuations and supplier-driven commercial terms, and improving cost efficiencies. The backward integration is also expected to enhance value addition, strengthen margins and improve the group’s consolidated profitability over the long term.
As part of the funding strategy, Oswal Pumps has proposed redirecting unutilised IPO proceeds originally earmarked for an aluminium frame facility, the remaining 300 MW EVA encapsulant facility and the remaining 500 MW solar module facility towards the proposed solar cell manufacturing project. The company’s board has approved the proposed variation in the objects and utilisation timeline of the IPO proceeds, subject to the necessary approvals.
The company said its assessment of long-term sourcing arrangements with domestic solar cell manufacturers found that the available commercial terms, including pricing and upfront security deposit requirements, were not aligned with its long-term value objectives and working capital management approach. Establishing captive manufacturing capacity was therefore considered a more economically viable option.
The facility is expected to support Oswal Pumps’ participation in domestic-content-requirement (DCR)-dependent government programmes, including PM-KUSUM and PM Surya Ghar. The company also expects demand for domestically manufactured solar cells to increase following the implementation of the Approved List of Models and Manufacturers (ALMM) List-II requirements.
Commenting on the investment, Vivek Gupta, Chairman and Managing Director of Oswal Pumps Limited, said the proposed facility would mark a significant step in the company’s transition towards becoming a fully integrated solar solutions provider. He added that in-house cell manufacturing would provide greater control over quality, costs and production timelines while supporting the company’s long-term growth in India’s renewable energy market.
With the proposed investment, Oswal Pumps aims to strengthen its solar manufacturing capabilities, improve supply-chain resilience and enhance its competitive position in India’s expanding solar energy sector.
