Shakti Pumps Infuses ₹12 Cr Into Solar Manufacturing Subsidiary

Madhya Pradesh-based solar pump manufacturer Shakti Pumps has invested ₹12 crore in its subsidiary, Shakti Energy Solutions Limited, to set up a greenfield solar DCR cell and PV module manufacturing facility with a 2.20 GW capacity in Pithampur, the company said in a regulatory filing. The investment marks the start of plans announced earlier by the parent firm to diversify into manufacturing solar cells and modules. 

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The subsidiary will oversee the project, which aims to strengthen Shakti’s backward integration and improve control over its value chain.

The investment follows Shakti Pumps’ ₹292.60 crore fundraise through a Qualified Institutional Placement (QIP) earlier this year. The company said proceeds from the QIP will be used to finance the new manufacturing unit.

In March, the company also began in-house production of solar cells and modules using solar wafers. Land for the project was allotted by the Madhya Pradesh Industrial Development Corporation (MPIDC) at the Smart Industrial Township in Sector-7, Dhar district.

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DCR Cell Supply Tie-Ups

Prior to this investment, Shakti Pumps relied on third-party tie-ups for procuring DCR cell-based solar modules. It partnered with Mundra Solar PV Limited (Adani) and Premier Energies for supply arrangements. It also signed an agreement with ReNew Photovoltaic for an additional DCR module supply worth ₹1,300 crore, it said in a regulatory filing. It had cited difficulties in steady access to DCR modules as a key ceiling to its growth plans. 

The new manufacturing investment is expected to help Shakti Pumps build long-term capacity, reduce supply dependency, and prepare for any future shortage of DCR cells. Analysts are not so sure, however, as the ground situation seems set to change significantly by the time Shakti's own manufacturing comes online. While a broader module overcapacity looms, even DCR modules may be available much more easily by the year-end, and some are even predicting a glut. In such a situation, Shakti will hope to produce at a cost low enough to justify sourcing from its own plant.