Shakti Pumps invests ₹12 crore in 2.2GW DCR cell/module plant at Pithampur, reducing reliance on Adani/ReNew for solar pump components.
Key Project Details
✅ Investment: ₹12 crore initial infusion (part of ₹292.6 crore QIP proceeds)
✅ Capacity: 2.2 GW DCR solar cells & modules
✅ Location: Pithampur, MP (MPIDC-allotted land)
✅ Strategic Goal: Backward integration for solar pump business
Project Rationale & Market Context
Why Vertical Integration?
✔ Supply Chain Control: Reduces reliance on Adani/ReNew for DCR modules
✔ Cost Optimization: In-house production vs procurement markup
✔ PM-KUSUM Scheme: Rising demand for DCR-compliant solar pumps
Current Supply Partnerships
| Supplier | Agreement Value | Module Type |
|---|---|---|
| Mundra Solar (Adani) | Ongoing | DCR |
| Premier Energies | – | DCR |
| ReNew Photovoltaic | ₹1,300 crore | DCR |
Financial & Operational Considerations
Funding Structure
- QIP Proceeds (₹292.6 crore): Primary funding source
- Additional Capex: Likely required for full 2.2 GW ramp-up
Challenges Ahead
⚠ Market Glut Risk: Industry-wide module oversupply predicted by 2026
⚠ DCR Demand Uncertainty: Potential policy shifts under new ALMM regime
⚠ Cost Competitiveness: Must undercut third-party procurement (₹19-21/W benchmark)
Manufacturing Timeline
- Phase 1: Pilot production started March 2025 (wafer-to-module)
- Phase 2: Full-scale ops by mid-2026
Leadership Statement
“This facility secures our DCR module supply for solar pumps while creating export potential.”
– Shakti Pumps Management
Industry Outlook
- MP as Solar Hub: Pithampur joins Indore/Gwalior manufacturing cluster
- DCR Module Demand: ~3.5 GW/year for KUSUM/central tenders
- Global Oversupply: Chinese module prices at record lows ($0.10/W)
Analyst View:
“Success hinges on achieving <₹20/W production costs amid looming oversupply.” – Renewables Analyst
Policy Support:
MPIDC land allotment reflects state’s push for renewable manufacturing
