In a strategic move to diversify its operations Shakti Pumps (India) Ltd has announced that its wholly owned subsidiary Shakti Energy Solutions Ltd has been allotted 113 acres of land by the Madhya Pradesh Industrial Development Corporation Limited (MPIDC). The land, located in the Smart Industrial Township, Sector-7, Pithampur, District Dhar will be used to establish a state-of-the-art solar cell and photovoltaic (PV) module manufacturing facility.
A Bold Step into Solar Energy Manufacturing
The new facility will utilize wafers as input material to produce solar cells and PV modules marking Shakti Pumps’ entry into the solar energy sector. This initiative aligns with India’s growing focus on renewable energy and the government’s push for self-reliance in solar manufacturing under initiatives like the Production Linked Incentive (PLI) scheme.
The company’s decision to venture into solar energy manufacturing comes at a time when the global demand for clean energy solutions is surging. By leveraging its expertise in manufacturing and innovation Shakti Pumps aims to contribute to India’s renewable energy goals while expanding its business portfolio.
Why This Expansion Matters
- Boosting Renewable Energy Infrastructure: The new facility will strengthen India’s domestic solar manufacturing capabilities, reducing reliance on imports and supporting the country’s energy transition.
- Economic Growth and Job Creation: The project is expected to generate employment opportunities and contribute to the local economy in Madhya Pradesh.
- Strategic Diversification: For Shakti Pumps, this move represents a strategic diversification into a high-growth sector, ensuring long-term sustainability and profitability.
Strong Financial Performance
Shakti Pumps’ expansion plans are backed by robust financial performance. The company reported a 130.09% year-on-year (YoY) jump in net profit at ₹104 crore for the third quarter ending December 31, 2024, compared to ₹45.2 crore in the same period the previous year.
Revenue from operations surged 31% to ₹648.8 crore, up from ₹495.6 crore in the corresponding quarter of the last fiscal year. The company’s EBITDA (earnings before interest, tax, depreciation, and amortization) also saw a significant increase, rising 117.46% to ₹154.4 crore, with an EBITDA margin of 23.8%.
A Vision for the Future
Shakti Pumps’ foray into solar energy manufacturing reflects its commitment to innovation and sustainability. The company’s Chairman and Managing Director, Dinesh Patidar, stated, “This expansion into solar energy manufacturing is a natural progression for us. It aligns with our vision of driving sustainable growth and contributing to India’s renewable energy ambitions.”
The new facility is expected to play a pivotal role in meeting the growing demand for solar energy solutions in India and abroad. By integrating advanced technology and efficient manufacturing processes, Shakti Pumps aims to deliver high-quality solar products that cater to both domestic and international markets.
A Win-Win for Industry and Environment
This initiative is a win-win for both the industry and the environment. It not only positions Shakti Pumps as a key player in the renewable energy sector but also supports India’s efforts to achieve its climate goals and reduce carbon emissions.
Why This Matters
- For India’s Renewable Energy Goals: Enhanced domestic manufacturing capacity for solar cells and PV modules.
- For Shakti Pumps: Diversification into a high-growth sector and long-term business sustainability.
- For Madhya Pradesh: Economic development and job creation in the region.
Stay tuned for more updates as Shakti Pumps embarks on this exciting journey to power a greener future.
