Swelect Energy to triple solar module capacity

Swelect Energy Systems intends to triple its solar module manufacturing capacity to 300 MW a year, spending around ₹70 crore. The company will move its 110 MW plant at Dabaspet, Bengaluru, to another location in the city.

Swelect Managing Director R Chellappan told BusinessLine recently that his “dream” was to get to 300 MW by 2020, but the capacity addition would be calibrated to government’s support to domestic manufacturers.

Until May 2012 Swelect was known as Numeric Power Systems when it used to make uninterrupted power systems. It entered solar module manufacturing in January 2013 when it bought into Bengaluru-based HHV Solar, which was producing 30 MW of modules a year. “We quickly realised that 30 MW was not adequate capacity,” said Chellappan.

In February 2012, Numeric sold the UPS business to Legrand of France for ₹837 crore. With these funds, Swelect bought out HHV Solar in 2015-16 and quickly tripled capacity to 110 MW, and merged HHV into Swelect.

Chellappan said that Swelect could survive the onslaught of cheap modules imported mainly from China because of its premium quality and after-sales service. But isn’t that a common claim? Chellappan explained that Swelect does an ELT (electro luminescence test) on every module at three different points of manufacture.

Solar modules are made by joining solar cells — poly or mono silicon wafers with silver wires etched on them to conduct electricity. These cells are thinner than potato chips and crack easily under stress. The ELT reveals tiny cracks and Swelect is able to give customers 12-year warranty for replacement of modules in case of manufacturing defect, and 25-year guarantee for a certain level of power generation. Swelect’s modules are a couple of rupees a watt costlier than those from China, but the manufacturer’s India presence gives a comfort level for customers, Chellappan said.

Apart from selling modules, Swelect builds solar plants. It also owns 50 MW solar plants and sells power directly to customers. Chellappan said the company was among the largest rooftop solar installers, with over 20 MW of installations across 4,500 locations.

In the quarter ended June 2018, the company reported a turnover of ₹51 crore, up from ₹42 crore in the comparable previous period. But ‘non-operating income’ fell to ₹7 crore from ₹10 crore earlier. As a result, the net profit declined to ₹3.65 crore, (₹7.30 crore). Earnings per share works out to ₹3.61 (₹7.22). On Thursday, Swelect closed on the NSE at ₹326, down 5.41 per cent over the previous close.

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