Tuesday, March 27, 2007

Khandelwal Solar's big plans in the PV space

While the general trend seems to be companies manufacturing solar photovoltaics in India to sell abroad, Khandelwal Solar plans to import solar photovoltaic modules and cells from a Chinese company to sell in India. Noida-based Khandelwal Solar Power Ltd has signed an MoU with Shanghai-based Solar EnerTech Corp to import and market the latter's products in India. But in keeping with the trend, they have big manufacturing plans too.

Marketing Agreement

"The MOU agreement establishes the framework towards the formation of a strategic partnership aimed at developing product sales in India as well as opening additional markets throughout Asia. The agreement outlines a six-year plan whereby KSPL would be supplied solar materials and products alongside technical training and consultative expertise on the design and manufacture of customized solar applications.

"The framework further elaborates that within fiscal 2007, Khandelwal will purchase 2Mw of solar cells and modules, representing an approximate $7.5 million in revenue for Solar EnerTech. Furthermore, KSPL agrees to purchase an additional 20Mw of solar modules and 10Mw of solar cells in 2008, and from 2009 to 2012, Khandelwal will annually purchase 20Mw of solar modules and 20Mw of solar cells in order to supply projected market demands within India."

Manufacturing Plans

Interestingly the company is also very bullish on manufacturing in India. Their website speaks of a project to manufacture solar photovoltaics in India, projecting a 3 phase capacity increase to 100 MW, also indicating that they have production orders to take care of 5 years worth of production.

I contacted Khandelwal Solar on this seeming discord in priorities and they clarified that the manufacturing project is still very much on, and the first solar modules and cells should start rolling out from the plant by June 2008. Currently the company is seeking private placement investments into the project, largely from NRI's. The marketing deal with Solar EnerTech Corp is an attempt to start penetrating the market right away.

Manufacture of solar PV products would mark a big jump for the Khandelwal group who have been manufacturing small semi-conductor components in India in technological coordination with Siemens.

The Indic View
would wish them luck in both endeavors.