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Oswal Pumps Board Approves 1.2 GW TOPCon-Based Solar Cell Plant In Karnal Photograph: (AI)
Haryana-based Oswal Pumps Limited, a manufacturer of solar pumping systems, solar modules and electric motors, has approved plans to set up a 1.2 GW solar cell manufacturing facility. This facility uses Tunnel Oxide Passivated Contact (TOPCon) technology.
In a press release, Oswal Pumps said that it decided at a company’s Board of Directors meeting to develop the facility through its subsidiary, Oswal Solar Energy Private Limited (OSEPL). Production is expected to commence by April 2028, with the entire output intended for captive consumption at the company’s in-house solar module manufacturing lines.
Through this facility, Oswal Pumps aims to secure a steady and reliable supply of cells compliant with domestic content requirement (DCR) norms. The investment is also expected to reduce the company’s exposure to spot-market price volatility and supplier-driven commercial terms.
At the meeting, the Board inter alia approved changes to the objects and terms of utilisation of the initial public offering (IPO) proceeds, along with a revision to the timeline for their utilisation. These changes are subject to the requisite statutory and regulatory approvals, including approval from the company’s shareholders.
Oswal Pumps estimates the total project cost at ₹456 crore, which it plans to finance through a combination of debt and unutilised IPO proceeds. Of the total, approximately ₹296 crore is proposed to be funded through debt, while the remaining ₹159.85 crore would be financed through unutilised IPO proceeds of ₹163.04 crore.
The company has decided to redirect funds originally earmarked for its Aluminium Frame Facility. It also plans to deploy the remaining capacity of 300 MW at its EVA Encapsulant Facility and 500 MW at its Solar Module Facility by infusing funds into OSEPL. The company proposes to utilise the net proceeds towards the solar cell manufacturing facility by the financial year 2028.
The reallocation shifts limited IPO capital away from aluminium frames, a relatively low-value-added component whose manufacturing capacity can be deferred, as well as surplus module and EVA encapsulant capacity. Instead, the funds will be directed towards solar cells, a critical part of the value chain where supply security has become increasingly important to business operations.
With a planned capacity of 1.2 GW, the facility is expected to meet approximately 75% of OSEPL’s overall cell requirements. The remaining demand will continue to be met through external sourcing in the near term.
Oswal Pumps’ existing and planned module manufacturing lines, comprising an approximately 570 MW line and an additional 1 GW line currently under development, are considered sufficient to meet its requirements. Further expansion of module capacity could increase the company’s dependence on externally sourced cells, particularly amid supply constraints associated with DCR requirements.
Aluminium frames, by comparison, are standardised components that can be procured from the market in the near term. With frame technology continuing to evolve, investing in manufacturing capacity at this stage could expose the company to the risk of capital expenditure becoming obsolete. Solar cells, however, are critical to securing supply and protecting margins, making them a higher-priority investment within the value chain.
Oswal Pumps’ decision builds on its objective of securing assured access to cells compliant with List-II of the Approved List of Models and Manufacturers (ALMM). The proposed facility is expected to reduce dependence on third-party suppliers and imported cells at a time when domestic cell availability is constrained.
The facility will also enable the company to use TOPCon cells, which offer higher efficiency and energy yield, supporting the production of higher-wattage, premium solar modules.
These modules are intended for deployment under PM-KUSUM, PM Surya Ghar, rooftop solar projects and other government-linked programmes, helping the company maintain its eligibility to supply projects under these schemes. Lower input and freight costs are also expected to strengthen its competitiveness in price-sensitive government tenders.
Furthermore, end-to-end control over cell and module quality is expected to improve the reliability and warranty performance of the company’s solar pumping systems.
Continued dependence on external cell suppliers would leave the availability and cost of a critical input outside the company’s control, creating strategic exposure for a business that relies on DCR-dependent programmes such as PM-KUSUM and PM Surya Ghar. According to the company’s assessment, a comparative evaluation found captive cell manufacturing to be the more economically viable option.
The proposed facility directly addresses these concerns by securing cell supplies, reducing OSEPL’s exposure to spot-price volatility and deposit demands, and extending value addition beyond module assembly to cell manufacturing. It is also expected to improve margins and profitability at the consolidated level.
The 1.2 GW of EVA encapsulant capacity being retained is considered largely sufficient to serve the company’s module manufacturing operations, with only a small incremental quantity expected to be sourced externally. Investing in the remaining 300 MW of capacity would tie up capital in an encapsulant manufacturing stage that is not the primary constraint on the company’s solar manufacturing economics, unlike solar cells.
All three alternatives involve allocating capital to lower-value activities or areas where existing capacity is considered sufficient. In contrast, the proposed cell manufacturing plant addresses the most critical supply-chain gap and strategic priority within OSEPL’s integrated manufacturing operations.
Commenting on the order, Vivek Gupta, Chairman and Managing Director, Oswal Pumps Limited, said, “The decision to set up a 1.2 GW TOPCon solar cell facility marks a defining step in Oswal Pumps’ journey from a pump manufacturer to a fully integrated solar solutions company. Over the years, we have built strong capabilities in solar modules, pumps, and complete solar pumping systems. Bringing cell manufacturing in-house completes that value chain and gives us greater control over quality, cost and
timelines.”
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