Oswal Pumps targets greater solar supply-chain control with with ₹4.65 billion investment

Oswal Pumps Limited plans to invest INR 4.65 billion (USD 47.3 million) in a 1.2 GW TOPCon solar cell manufacturing facility through its wholly owned subsidiary, Oswal Solar Energy Private Limited (OSEPL), as the company seeks to strengthen backward integration and reduce reliance on external suppliers.

Commercial production is expected to begin by April 2028, subject to the necessary approvals.

According to a regulatory filing dated October 10, 2026, OSEPL’s board has approved the proposed project. The facility is expected to meet approximately 75% of the subsidiary’s solar cell requirements, with the remaining demand continuing to be sourced from external suppliers.

The investment marks a shift in priorities towards solar cell manufacturing, as Oswal Pumps looks to secure a more reliable supply of a key component for its in-house solar module production. The company expects the move to reduce exposure to spot-market price fluctuations and improve cost competitiveness in government-backed renewable energy programmes.

INR 4.65 billion project to draw on debt and IPO proceeds

The project cost is estimated at INR 4.65 billion (USD 47.3 million), with INR 2.96 billion  (USD 30.7 million) proposed to be financed through debt. The remaining INR 1.59 billion (USD 16.6 million) is expected to come from unutilised IPO proceeds.

The IPO funds had previously been earmarked for an aluminium frame manufacturing facility, the remaining 300 MW EVA encapsulant facility and the remaining 500 MW solar module facility.

Oswal Pumps’ board has approved the proposed revision in the utilisation of these proceeds and the associated implementation timeline, subject to the required statutory, regulatory and shareholder approvals.

The company intends to deploy the reallocated funds towards the solar cell project by FY2028.

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TOPCon technology supports higher-efficiency solar modules

The proposed facility will use Tunnel Oxide Passivated Contact (TOPCon) technology, which is designed to deliver higher conversion efficiency and improved energy yield. The technology will support the production of higher-wattage solar modules as Oswal Pumps expands its manufacturing capabilities.

The investment is also expected to strengthen the company’s ability to meet domestic content requirements under government-backed programmes, including PM-KUSUM and PM Surya Ghar, while supporting compliance with the Approved List of Models and Manufacturers (ALMM) List-II requirements.

Solar cell production takes priority over further module expansion

Oswal Pumps currently has a solar module manufacturing line with approximately 570 MW of capacity, while an additional 1 GW facility is under development. The company said these capacities are sufficient to meet its present requirements, prompting it to prioritise solar cell manufacturing over further module capacity expansion.

The move is intended to address supply-chain constraints and improve operational efficiency by bringing a key component of solar module production in-house.

Commenting on the investment, Vivek Gupta, chairman and managing director of Oswal Pumps, said the project represents an important step in the company’s transition from a pump manufacturer to an integrated solar solutions provider. He said in-house solar cell production would give the company greater control over production quality, costs and delivery timelines while supporting long-term growth.

The proposed facility forms part of Oswal Pumps’ broader strategy to strengthen domestic solar manufacturing, improve supply-chain security and expand its participation in India’s renewable energy market.

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