Oswal Pumps is expanding its new solar module business to 1.5 GW and moving into key component manufacturing. Discover its strategy to become a self-reliant player in India’s solar value chain.
KARNAL, India – In a strategic shift that mirrors India’s renewable energy ambitions Karnal-based Oswal Pumps is aggressively expanding beyond its core business. The company is scaling its newly launched solar module manufacturing line and diving into the production of critical components to build a self-sufficient solar ecosystem.
The company currently operates a 570 MW solar module facility in Karnal. Now, it has embarked on an ambitious plan to nearly triple this capacity, aiming to reach 1.5 GW of production.
A Logistically Smart Expansion
To enable this seamless scale-up, the company has acquired a 28,000 sq. m land parcel adjacent to its existing facility. Vivek Gupta, Chairman and Managing Director of Oswal Pumps, highlighted the benefits of this move, stating it offers “significant logistical advantages, including better coordination, reduced transportation time and cost, and overall operational efficiency.”
The expansion is being executed in phases, with the initial work already underway. The company plans to utilize ₹1,536.60 million from the net proceeds of its recent Initial Public Offering (IPO) to fund this growth. The new, expanded production line is expected to be operational by February next year.
The Bigger Picture: Backward Integration for Self-Reliance
The most significant part of Oswal’s strategy is not just making more modules, but making more of the module. The company is advancing into multiple backward-integration segments to control its supply chain and reduce dependence on imports. Its new manufacturing verticals will include:
- Aluminium Extrusions: For manufacturing the module frames.
- Encapsulant Materials (EVA/POE): The critical layers that protect solar cells.
- Junction Boxes and Backsheets: Other essential components of a solar panel.
- On-Grid Solar Inverters: The devices that convert solar power into usable electricity.
This move is strategically crucial. Currently, only a handful of Indian manufacturers, like RenewSys and Saatvik Solar, produce encapsulants domestically. By bringing this and other key productions in-house, Oswal Pumps aims to become more resilient and also strengthen supply capabilities for the broader Indian solar industry.
This comprehensive diversification aligns with the company’s goal to establish “robust backward-linked manufacturing” and emerge as a competitive, self-sufficient player in the country’s entire solar value chain, signaling a new phase of maturity for India’s domestic solar manufacturing sector.
