Eyeing demand for solar-powered water pumps in India, Haryana-based Oswal Pumps Ltd is to use a portion of the proceeds of its ₹1,387-crore IPO, to set up a new facility for the manufacture of 1500 MW solar modules, aluminum extrusion frames and ethylene-vinyl acetate (EVA) encapsulant material.

“We plan to use ₹360 crore from the IPO proceeds as capital expenditure. We will use about ₹90 crore on increasing the capacity, automation and modernisation of our existing manufacturing facility for motors at Karnal in Haryana. An additional ₹270 crore will be pumped into our 100 per cent subsidiary --- Oswal Solar Structures Pvt Ltd --- which currently has a 600 MW capacity for manufacture of solar modules for turnkey solar pumping systems,” said Vivek Gupta, Chairman and Managing Director. The company earns a majority of its revenue by tapping the PM Kusum Scheme, which funds installation of solar agriculture pumps in off-grid areas. The IPO will open on June 13 and will be a mix of fresh issue of ₹890 crore and an offer-of-sale of ₹497 crore by its promoter Vivek Gupta.

“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,” Gupta added. Of the total ₹270 crore that will be pumped into the subsidiary, ₹156 crore will be used to increase the solar module manufacturing capacity to 2100 MW, and ₹43 crore will be used to build an aluminium extrusion frame facility to manufacture frames in-house to hold solar cells, glass and other components together in a solar module. The company will use ₹27 crore to manufacture EVA encapsulant material, which is used in solar modules to protect solar cells from external factors. It is also considering in-house manufacture of on-grid inverters that connect solar modules to the grid and junction box back sheet -- a component of solar modules.

The company plans to export the solar modules to the US and Europe, according to the prospectus filed by the company. “We also intend to supply solar modules to third-party entities, including existing and new distributors, players participating under the PM Kusum scheme, original equipment manufacturers, government entities and those engaged in private large rooftop and ground-mounting projects. We also intend to export solar modules to the US and Europe,” the company stated.

“India has a vast potential for installation of solar pumps. There are 144 million farmers in India, approximately 30 million of whom have access to water pumps powered by electricity, diesel or solar energy. About 30 per cent of these farmers currently use diesel powered pumps, while a large section do not have access to pumps. This presents an opportunity for the wide adoption of solar pumps to address unmet agricultural water needs of the farming community,” Gupta added.

Published on June 11, 2025