Premier Energies Ventures Into Inverter, Transformer Biz

Hyderabad-based solar module manufacturing company Premier Energies now seems to be on a diversification spree. The company, which has already tried its hand at solar modules, solar cells, and aluminium frame manufacturing, is now foraying into new areas.

The publicly listed company has planned to venture into the solar inverter manufacturing market and also into transformer manufacturing. While its plan to foray into solar inverter manufacturing is mainly targeted to cater to the rising demand for small-scale solar inverters for residential rooftop systems—fit for the PM Surya Ghar scheme—its plan for the transformer business is set to boost its avenues in the overall energy business beyond renewables.

KSolar & Transcon Acquisitions 

In a latest move, Premier Energies acquired a 51% stake in KSolar Energy Pvt Ltd. KSolar is a Pune-based solar inverter manufacturer that primarily produces solar inverters for residential rooftop solar systems. The board has already approved the acquisition. On the other hand, 49% of the stake in the company will be co-acquired by Syrma SGS Technologies, a Chennai-based company.

KSolar currently has a production capacity of 5 lakh inverters annually, whereas its FY25 revenue stood at ₹342 crore. It produces on-grid, off-grid, and hybrid inverters. Premier Energies acquired the company for a total consideration of ₹170 crore.

From Cells To Transformers

“Through this acquisition, the company will foray into the fast-growing residential solar inverter segment, aligned with the Government of India’s PM Surya Ghar Muft Bijli Yojana. The business will benefit from Premier Energies’ extensive sales and distribution network,” the company said.

On the other hand, following its acquisition spree, the board of Premier Energies has also approved the acquisition of Transcon India Ltd with a 51% stake. Transcon is a Hyderabad-based company engaged in the manufacturing of power transformers of different types.

“The acquisition creates strong operational and market synergies with our existing solar module manufacturing business. It enhances our ability to deliver integrated energy solutions and cross-sell products to a broader customer base,” the company said.

A Trend for the Big Players?

In the past few years, several companies in India with large capacities—mainly beyond 10 GW—have embarked on diversification and expansion sprees, leading to more consolidations. For example, a close competitor of Premier Energies, Waaree Energies, and the Waaree Group at large, have in recent years also acquired several firms to broaden their footprint in the overall energy spectrum.

Waaree Energies last month acquired a 64% stake in Kotsons to enter the transformer business. It also acquired a majority stake in Racemosa Energy (India) Pvt Ltd for manufacturing smart meters, besides making a strategic investment in Smart Joules (a cooling-as-a-service/energy efficiency company). This is in addition to the firm’s plans to boost its solar cell production and begin manufacturing wafers and ingots.

Saatvik Energy, another solar module manufacturer, is already working on the production of aluminium frames, encapsulants, and solar cells. Similarly, several companies in the Indian solar market are now entering a phase of consolidation and acquisitions to diversify their operations and increase their footprint not only in the renewable space but also in power distribution, energy efficiency, and other segments of the energy sector. These acquisitions are likely not only to add new streams of revenue but also to help reduce margins for several of their projects and provide better control over the supply chain.