Oswal Pumps Boosts Solar Capacity, Integration in Haryana with ₹270 Cr IPO Infusion.

Haryana-based Oswal Pumps Ltd. is set to significantly expand its solar manufacturing capabilities, earmarking ₹270 crore from its upcoming ₹1,387-crore Initial Public Offering (IPO) proceeds for a new facility focused on solar modules and key component manufacturing. This strategic investment aims to capitalize on India's burgeoning demand for solar-powered water pumps, particularly under government initiatives like the PM-KUSUM Scheme.

The company's Chairman and Managing Director, Vivek Gupta, announced that a total of ₹360 crore from the IPO will be allocated as capital expenditure. Of this, approximately ₹90 crore will be dedicated to increasing capacity, automation, and modernization at Oswal Pumps' existing motor manufacturing facility in Karnal, Haryana.

The larger portion, ₹270 crore, will be channeled into its wholly-owned subsidiary, Oswal Solar Structures Pvt. Ltd., which currently holds a 600 MW capacity for manufacturing solar modules for turnkey solar pumping systems. This infusion will be critical for vertical integration and scaling operations.

"The proposed new facility will assist us in developing a complete value chain of PV solar modules and will play a pivotal role in supporting our growth objectives," stated Vivek Gupta.

Specifically, of the ₹270 crore directed to Oswal Solar Structures Pvt. Ltd.:

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  ₹156 crore will be utilized to substantially increase the solar module manufacturing capacity to 2100 MW.

  
  


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  ₹43 crore is allocated for building an in-house aluminum extrusion frame facility to manufacture frames that house solar cells, glass, and other components within a solar module.

  
  


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  ₹27 crore will be invested in manufacturing ethylene-vinyl acetate (EVA) encapsulant material, a crucial component used in solar modules to protect solar cells from external environmental factors.

  
  

Oswal Pumps, which currently derives a majority of its revenue from the PM-KUSUM Scheme (designed to fund solar agriculture pump installations in off-grid areas), is also actively exploring the in-house manufacture of on-grid inverters (connecting solar modules to the grid) and junction box back sheets, further strengthening its backward integration.

The ₹1,387-crore IPO, comprising a fresh issue of ₹890 crore and an offer-for-sale of ₹497 crore by promoter Vivek Gupta, is scheduled to open on June 13. This expansion is poised to solidify Oswal Pumps' position as a key player in India's renewable energy landscape and enhance its self-sufficiency in solar technology manufacturing.