Why Alpex Solar Is 'Conservative' In Product Diversification? MD Explains

Publicly listed solar manufacturer Alpex Solar, known for its module production and ongoing efforts to establish a solar cell line, appears to be moving against the broader industry trend of rapid diversification. Over the past two years, several Indian solar companies have expanded into Battery Energy Storage Systems (BESS), encapsulants, inverters, transformers and other adjacent businesses. Alpex, however, has chosen not to follow this wave.

According to the company’s top management, this decision is intentional. They describe the current diversification rush as a “me-too” trend that Alpex prefers to avoid as it pursues a more conservative and focused growth strategy. For now, the company remains engaged in module manufacturing with a small EPC division, while also planning to enter solar cell and aluminium frame manufacturing, in addition to expanding its Independent Power Producer (IPP) business.

Need Serious Players 

“People are expanding capacities and there is a lot of me-too kind of phenomenon happening. Non-serious players are joining the bandwagon,” Managing Director Ashwani Sehgal told investors recently. “Those who have knowledge and depth in this business will succeed, while others may not.”

He added that Alpex intends to invest only in areas where it has a strong business understanding. “That is why we are investing in a 2.2 GW solar cell line. Our investment in the aluminium plant was the first announcement. Many serious players are now entering solar frame manufacturing as frames constitute almost 11% of a panel’s cost.”

No To Transformers, Inverters

Sehgal said the company has consciously decided not to foray into transformers or inverters. “We will instead invest more in the EPC business, frame business and cell manufacturing. We are also forming joint ventures for junction boxes and some other components.”

Alpex is targeting to begin solar cell production as early as February next year, or at least by Q1 FY27. While the company initially planned to set up a Mono-PERC cell line, it has now opted for TOPCon technology with G12R format, which it believes will give it a competitive edge.

With the launch of its solar cell line and other growth plans, Alpex expects to double its net profit from the next financial year. The company has projected total revenue of around ₹1,500 crore for the current fiscal.

Solar Cell Line Soon

“Our 2.2 GW cell capacity is coming up in two phases. The first phase of 1.4 GW will start contributing to revenue in the next financial year for at least 10 or 11 months. The remaining 800 MW will follow,” Sehgal said.

The company is also expanding module capacity by another 1.2 GW. “The entire production from the new 1.2 GW line will be available from December 15–20. We have already announced an additional 1.2 GW next to our cell factory in Kosi, which will come up in the next financial year,” he said. “So next financial year, our total 3.6 GW of module capacity and 2.2 GW of cell and aluminium capacity will be fully operational.”

Alpex reported a monthly EBITDA of around ₹25 crore, which it expects to improve once solar cell production begins. Its EPC arm contributes 12–15% of annual revenue. The company currently has an order book of about ₹1,800 crore and aims to scale its module manufacturing capacity to 15 GW by 2031. It also considers ingot and wafer manufacturing less favourable at the moment, citing inadequate support under the PLI scheme.