Reviewing the Financial Success and Sustainable Effects of Vikram Sola... Reviewing the Financial Success and Sustainable Effects of Vikram Solar Read more

Summary

One of the top suppliers of solar energy solutions is Vikram Solar Limited, which specialises in producing highly efficient solar panel systems and provides an extensive range of EPC options. Vikram Solar has become a powerful force in the solar panel industry by making use of its excellent infrastructure and extensive market reach throughout India.

Company Overview

One of the top suppliers of solar energy solutions is Vikram Solar Limited, which specialises in producing highly efficient solar panel systems and provides an extensive range of EPC options. Serving both government and private clients, the company operates on six continents and has a global presence. As a Tier 1 PV module manufacturer, Vikram Solar has a four-decade history of manufacturing excellence, according to Bloomberg New Energy Finance. Gyanesh Chaudhary who founded Vikram Solar in 2006. He serves as the Chairman and Managing Director of Vikram Solar, which has grown to be one of the biggest producers of solar modules in India, with a 2.5 GW yearly manufacturing capacity. The firm uses state-of-the-art solar panel systems, creative problem-solving techniques, and unconventional approaches to effectively install and commission solar projects. Its yearly module manufacturing strength is 3.5 GW. Large-scale, rooftop, creative, and airport projects are among the remarkable 1400 MW solar EPC portfolio of Vikram Solar in India.

Business Model of Vikram Solar

In order to comprehend Vikram Solar's business strategy, it is necessary to first comprehend how Vikram Solar functions within its industry. Vikram Solar serves both commercial and governmental customers globally with a variety of solar energy-related goods and services. The following are the main goods and services offered by Vikram Solar:

Products - 

PV Modules: As one of the leading producers of solar panels, Vikram Solar offers premium panels with cutting-edge features including anti-glare, bifacial, frameless, glass-glass, high system voltage, and Module Level Power Electronics (MLPE). These panels have performance guarantees of 27–30 years and range in power from 350–670 Wp.

Solar Modules: Using cutting-edge M10 sun cell technology, the business manufactures Series 10 bifacial and monofacial solar modules, which have a peak output of 550 watts and an efficiency of 21.33%.

Modern Solar Products: Vikram Solar's panels are made to last in a variety of climates and conditions thanks to their robustness, power, durability, and performance assurance.

Services - 

Complete Engineering, Procurement, and Construction (EPC) solutions, including installation and design services, are provided by Vikram Solar for solar projects.

O&M Services: With over 900 MW of experience servicing projects worldwide, the business offers full operations and maintenance (O&M) services.

Solar Project Commissioning: Vikram Solar is a leader in the effective execution of solar projects, having completed 1.57 GW of projects worldwide.

Within the solar energy sector, Vikram Solar works in certain markets and regions, exhibiting a robust presence and a wide range of products. Based on the supplied search results, the following summarises Vikram Solar's sectors and geographic areas:

Segments: 

Energy & Environment: Vikram Solar mainly serves customers in the Energy and Environment market category, emphasising the provision of solar energy solutions that support environmentally friendly behaviours and sustainable practices.

Geographics : 

Worldwide Presence: Spread over six continents, Vikram Solar is an Indian enterprise with a substantial worldwide reach. Due to its global reach, the firm is able to provide its superior solar goods and EPC solutions to clients all over the world.

Important Projects: The business has completed more than 440 MW of solar power projects in India. Notable projects include a 50 MW solar power project for NTPC Limited in Mandsaur, Madhya Pradesh, and a 130 MW solar power plant in Bhadla, Rajasthan. Furthermore, Vikram Solar is well-established in the US and produces premium solar panels there.

Vikram Solar is well-known in a number of nations on various continents. The business has offices in South Africa, Kenya, and Uganda. Furthermore, Vikram Solar has expanded into 14 additional Sub-Saharan African markets, encompassing nations such as Botswana, Zimbabwe, and Tanzania. Vikram Solar has provided modules for Southern Current projects and solar farms in Massachusetts in the United States. Additionally, the business built solar panels at Helsinki-Vantaa Airport in Finland.

Some Solar projects completed by Vikram Solar

Kenya:

In order to help Kenya achieve its targets for renewable energy, Vikram Solar has carried out solar projects there. The company's dedication to growing solar energy solutions in the area is demonstrated by its presence in Kenya.

Uganda:
Vikram Solar has demonstrated its skills and ability to supply sustainable energy solutions to meet the nation's energy demands by actively participating in solar projects in Uganda.

South Africa:

With a specialised office in Johannesburg, Vikram Solar has made a significant impact there. Through its activities in South Africa, the firm hopes to improve its market presence and provide consumers with competent service throughout Africa.

Industry Research

India has seen a rise in foreign direct investment (FDI) in recent years. India is becoming the new China for businesses due to reduced labour costs. Any nation that aspires to expand its economy should concentrate on elements such as globalisation. The nation must have a strong infrastructure to attract more foreign investment, and a strong infrastructure is required to meet energy demands. It looks like solar energy is an excellent way to meet all of your energy demands. Solar energy has grown significantly in the Indian and international markets.

Over the projected period, the India Solar Energy Market is anticipated to grow at a CAGR of 19.80%. India's solar market is anticipated to reach 195.11 GW in five years, from an estimated 79.07 GW at year's end.

In the longer run, the Indian solar energy industry is expanding because solar technology is getting more affordable, solar systems are becoming more adaptable, and solar energy is a more environmentally friendly source of electricity. Supportive government policies, in particular the objectives of the Ministry of New and Renewable Energy (MNRE) to promote the generation of power from renewable sources, help drive the market.

India, however, receives year-round solar energy due to its high solar irradiation. This indicates that solar energy may be employed in numerous locations in the sunniest regions of the nation, such as Rajasthan, Gujarat, and Andhra Pradesh. This offers the Indian solar energy industry a lot of growth opportunities, coupled with foreign investment and several R&D initiatives to advance technology. 

Throughout the projection period, the solar PV sector is anticipated to have the largest market share. This is because solar modules are becoming more affordable and because these systems have a wide range of applications, including the production of energy and water heating.

According to IRENA, India's installed solar PV capacity increased from 49.3 GW in 2021 to about 62.8 GW in 2022. This was a about 31% rise from the previous year. India saw development as a result of the large number of solar PV installations it made, particularly for utility projects. The Indian government intends to deploy more solar photovoltaic cells. Reliance Industries (RIL) and the Gujarati government inked an agreement in January 2022 for RIL to invest USD 80.61 billion over ten to fifteen years in Gujarat to establish 100 GW of renewable energy power plants and a green hydrogen ecosystem. Solar power plants are among the renewable energy power plants operating at the utility-scale. For prospective renewable projects, RIL plans to invest USD 8.12 billion in the establishment of manufacturing facilities for fuel cells, batteries, electrolyzers, and solar PV modules.

Promoters and Shareholding of the Company

The promoters of Vikram Solar are Gyanesh Chaudhary and Anil Chaudhary.

Key Investors

Since the business has not yet announced the IPO's launch date, the issue price of the Vikram Solar IPO is unknown. Despite having received approval from SEBI to proceed with the IPO, the business has not yet disclosed the launch dates.

According to the DRHP Vikram Solar IPO, the total issue size would be about Rs 2000, of which Rs 1500 crore will be new issues and the remaining amount will be an offer for sale (OFS) by the selling shareholders of up to 5,000,000 equity shares. Nonetheless, the business has already thought about a pre-IPO placement valued at Rs. 300 crores, which will lower the IPO's overall issue size.

Strengths

With 2.5 GW of installed solar PV module production capacity, the business holds a 19% market share in the solar panel sector. With PAN India's presence in 23 states and three union territories, the corporation is present in the home market.

To guarantee that consumers may obtain authentic products with an easy-to-use purchase procedure and seamless technical advice, the firm works with a distribution network of 42 distributors and has 56 reliable resellers of its products throughout India with a network of 97 empanelled system integrators.

Risks

Even though Vikram Solar is one of the biggest producers of solar panels in India, it faces fierce competition from other businesses that have joined the market with stronger financial standing.

The installed capacity of solar panel production must be increased if the firm is to keep up its growing pace and guarantee its income.

Since the firm does not have long-term agreements with suppliers of solar PV cells, there is a chance that the scarcity of raw materials would increase the operational costs of the business.

Funding

Vikram Solar has completed two early-stage investment rounds, raising a total of $7.17 million, with the biggest round totalling $6.61 million. A wide range of investors, including five angel investors and seven institutional investors, have supported the firm.

Peer Comparison

Valuation

At ₹385 per share, a market capitalization of ₹9,965 crores, and a lot size of 50 shares, the present valuation of Vikram Solar Ltd. is around ₹9,965 crores. With an annual production capacity of 2.5 GW, Vikram Solar Limited is the largest solar module producer in India by capacity and the country's second-largest solar energy firm by revenue. The company's core areas of expertise include solar PV module production, engineering, procurement, and construction services, and solar power plant operation and maintenance. With SEBI, Vikram Solar has submitted preliminary documents for a Rs. 2,000 crore initial public offering (IPO).

Conclusion

Vikram Solar has become a powerful force in the solar panel industry by making use of its excellent infrastructure and extensive market reach throughout India. With a notable 19% market share and 2.5 GW of installed solar PV module production capacity, the firm shows that it can fulfil the increasing demand for renewable energy solutions. Vikram Solar does, however, face obstacles, such as fierce rivalry from well-funded competitors and the need to increase production capacity to maintain its rising trajectory. Furthermore, the lack of long-term contracts with suppliers raises the possibility of material shortages and higher operating expenses.

Vikram Solar has to establish strong alliances, prioritise critical investments in manufacturing capacity, and put effective risk management procedures in place to effectively traverse these hurdles. By doing this, the business will be able to maintain its lead in the market, stimulate innovation, and support India's move towards renewable energy.