Oswal Pumps to set up 1.2 GW TOPCon solar cell manufacturing facility

Oswal Pumps Ltd has announced plans to set up a 1.2 GW solar cell manufacturing facility based on TOPCon (Tunnel Oxide Passivated Contact) technology, deepening backward integration across the solar value chain.

The company currently manufactures solar pumping systems, solar modules and electric motors manufacturer in India. Its board of directors recently approved the proposed cell facility through its wholly owned subsidiary, Oswal Solar Energy Pvt Ltd (OSEPL).

Oswal Pumps expects commercial production at the facility to begin by April 2028.

“The entire output is intended for captive consumption by OSEPL’s in-house solar module lines. It is intended to secure a steady, reliable supply of DCR cells and reduce the Company’s exposure to spot-market price volatility and supplier-driven commercial terms. It will also extend OSEPL’s value addition from module assembly into cell manufacturing,” stated the company. “Together, these benefits are expected to strengthen the group’s cost structure, competitive positioning in Government-backed programmes, and profitability at the consolidated level over time.”

The total project cost is estimated at around INR 456 crore. Of this, about INR 296 crore is proposed to be funded through debt. The balance INR 159.85 crore is proposed to be funded from the unutilised IPO proceeds of INR 163.04 crore, which were originally earmarked for the aluminium frame facility, the remaining 300 MW of EVA encapsulant facility and the remaining 500 MW solar module facility. The company proposes to deploy the Net Proceeds towards the aforementioned solar cell manufacturing facility by Financial Year 2028.

With a capacity of 1.2 GW, the cell facility is expected to meet approximately 75% of OSEPL’s total cell requirements, with the remainder continuing to be sourced externally in the near term. The company currently operates a 570 MW solar module line and has an additional 1 GW of module capacity under construction.

“Bringing cell manufacturing in-house gives us greater control over quality, cost and timelines,” said Vivek Gupta, chairman and managing director, Oswal Pumps Ltd. “With ALMM List-II now in force, demand for domestically manufactured cells is set to rise sharply. We see this as the right opportunity to invest. Choosing TOPCon technology ensures we are building for the future, with higher efficiency and better long-term performance for our customers.”