Premier Sets Up Aluminium Unit To Expand Captive Use

Premier Energies Limited has incorporated a subsidiary, Premier-Green Aluminium Private Limited (PGAPL), to manufacture, process, and extrude aluminium and its alloys for captive consumption, the company said in a regulatory filing.

The new subsidiary has an authorized share capital of ₹10 lakh, Premier Energies said.  In 2024, Premier Energies and several Indian solar manufacturers announced plans to develop in-house aluminium frame manufacturing. The company’s latest move aims to enhance self-reliance in the sector. The move aligns with the company’s strategy to integrate aluminium frame production and reduce import dependence, supporting its broader backward integration efforts in wafers and ingots.

"We are pleased to announce our entry into aluminium frame manufacturing with a 36,000 metric ton per annum facility for captive consumption," said Chiranjeev Saluja, Managing Director of Premier Energies, during an investor call. "The project requires a ₹230 crore capex, with 25% equity funding from internal accruals. This investment is expected to improve our EBITDA margin by 100-150 basis points."

Companies Headed Towards Backwards Integration

Backward integration in the recent past has become key for companies to move toward greater self-reliance. Companies like Alpex Solar, Waaree Energies, and Grew are heading towards bringing backward integration. For most firms, going beyond cell manufacturing might be a stretch due to technology challenges or investment demands, but making their own aluminium frames is an obvious low hanging fruit to aim for.