In conversation with Anmol Singh Jaggi, Managing Director, Gensol Engineering Ltd















For India to become a $5 trillion economy by 2025, a climate-driven push for a new energy transition in the domestic market is the only key, says Anmol Singh Jaggi, Managing Director of Gensol Engineering Ltd. .





What are the growth prospects for Gensol Engineering?


Prime Minister Narendra Modi’s climate-motivated push at the recent COP26 summit in Geneva holds a goldmine for a company like Gensol. We also support the Prime Minister’s announcement to increase non-fossil energy capacity to 500 GW and meet 50% of energy needs from renewable sources by 2030. To date, India went through 50 GW of solar installations, which is about 31 percent. cent of the total renewable energy mix, which, all things being equal, would represent at least 150 GW of solar installations by 2030.


According to one estimate, this would involve an investment of approximately $70 billion over the next 8 years. Even if Gensol only manages to capture 1% of this market during this period, this translates into annual revenues of over Rs 600 crore. From an investor’s perspective, it is important to sort the wheat from the chaff and the fact that Gensol has weathered the vicissitudes of this industry when many players have gone out of business, we are betting strongly on strong multi-year revenue growth. of the living room over the next decade while chasing the brighter days ahead.



What is your vision of the renewable energy sector in India?


For India to become a $5 trillion economy by 2025, a climate-driven push for a new domestic energy transition is the only key to enhancing energy security, facilitating economic growth, limiting carbon emissions and manage its budget deficit. Piquantly, Prime Minister Narendra Modi’s pledge at the COP26 climate conference held in Glasgow in November 2021 that India will achieve net zero carbon emissions by 2070 is a remarkable commitment in itself. This will act as a vital force in transforming India’s energy landscape and will open up a plethora of opportunities for the renewable energy sector.


This serious deployment of renewable energy capacity in India until 2030 requires an investment of around $300 billion, according to one estimate. All of this bodes well for Gensol as a complete solar engineering solutions provider. That said, there could be delays in policy implementation, while funding issues cannot be ruled out. On top of that, one obvious hurdle that could potentially weaken these massive plans a bit and delay their course is the availability of solar modules. Relevantly, the government decided to impose a Basic Customs Duty (BCD) of 40% on solar modules and 25% on solar cells from April 1, 2022, a decision hailed as a savior of the economy. Indian solar industry.


It is important to note that India has a photovoltaic cell manufacturing capacity of 4.3 GW and a module manufacturing capacity of 18 GW, of which only about 4 GW produce modules with a capacity above 400 Wp ( watt peak), which is what customers mainly request. With BCD in action, the modules are likely to become expensive to the extent that an EPC contractor like Gensol could install a complete solar project on the roof of a metal shed with a Chinese Tier 1 module on a per watt basis. Despite this, as India seeks to develop its domestic solar panel manufacturing industry, the government has issued a series of policies to help manufacturers establish PV production lines in India.


And to stimulate demand for their products, which, the Production Linked Incentives (PLI) scheme for integrated PV manufacturing with an initial outlay of Rs 4,500 crore (USD 616 million), plus allocation additional Rs 19,500 crore (USD 2.5 billion) in the 2022 budget has the combined potential to produce at least 40 GW of solar modules. This is expected to drive strong demand for the PV auxiliary market, including glass, ethylene-vinyl acetate (EVA), among others, in addition to skilled labor.



At Gensol Engineering, what are your main growth drivers?


The fact that Gensol has been involved in India’s solar revolution since its inception stage has equipped it with all the necessary capabilities to take advantage of the gigantic opportunity that is staring us in the face. It should be noted that out of the currently installed solar capacity in India of more than 50,000 MW, Gensol has supported through its range of services the development of projects totaling at least 35,000 MW of capacity, touching them at various points. of the value chain.


This has helped Gensol become a complete solar engineering solutions provider with a strong focus on high quality engineering, sharp sourcing skills and strong execution capabilities. Most importantly, Gensol’s young management with an unwavering spirit to meet challenges and remain steadfast to risks has been the essential component of its existence.



What are the most positive technological and policy changes shaping the outlook for the renewable energy industry in India? What does Gensol gain from such changes?


China accounts for approximately 61% of global solar module manufacturing capacity over 350 GW, which invariably exposes players like us to the vagaries of the international market. Again, Indian manufacturers are highly dependent on imports mainly from China with the associated risks of shortages and price hikes, which in turn makes us more dependent on Chinese suppliers. This highlights the need for a sustainable and vertically integrated home solar manufacturing ecosystem so that we can shift our dependencies to domestic players, which will drive demand and also create a more competitive market. In this direction, the Indian government’s ambitious PV installation target, coupled with political support, has made the prospects for indigenous photovoltaic (PV) manufacturing increasingly vibrant.


For the expansions planned as part of the planned program Under the PLI program, many large players are adopting the strategy of investing in new technologies at pilot scale in advance, in order to understand the limitations and challenges of the process before moving to capacity expansion at large scale. Investment in product/technology selection is driven by benefits of levelized cost of electricity (LCOE) instead of cost/Wp, which will significantly improve project economics and drive consumer demand. Gensol’s long presence in the market and solid expertise in the field will help it decipher the advantages of technologies before the customer, thus helping it to grow its business further.



Do you intend to introduce electric vehicles, especially commercial 4 wheelers?


India is on the cusp of a major green transformation knowing that it has pledged to achieve carbon neutrality by 2070. It should be noted that our domestic emissions are largely dominated by emissions from production electricity (56%) and transport (13%). percent), which makes the case for promoting businesses that contribute to a rapid transition to a low-carbon economy. Along these lines, Gensol is toying with the idea of ​​entering the manufacture of electric vehicles, keeping in mind the vast pool of opportunities that this sector is pregnant with.



What measures have you taken at Gensol Engineering to increase its market share across the entire product line?


As a publicly traded organization, Gensol constantly strives to improve its service delivery through better engineering and cost effective solutions, especially when this industry is very price sensitive. Gensol’s presence on the BSE stock exchange is already helping it redefine its perception among its existing customers and potential customers, which has been the main reason for the transformation from a small company into a trusted solar brand.


Again, Gensol is constantly striving to increase its market share through backward integration in its supply, in which we plan to acquire some of the suppliers to gain a decisive advantage on the supply and pricing of items at long delivery time. Gensol’s management has focused heavily on customer engagement, through which it has managed to increase its repeat orders to 30% of the total order value.



























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