Oswal Pumps Limited, one of India’s leading manufacturers of solar pumping systems, solar modules and electric motors, today announced that the Board of Directors of its wholly owned subsidiary, Oswal Solar Energy Private Limited (“OSEPL”) has approved plans to set up a 1.2 GW solar cell manufacturing facility based on TOPCon (Tunnel Oxide Passivated Contact) technology.
The commercial production is expected to commence 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. 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 approximately Rs 456 crore. Of this, about Rs 296 crore is proposed to be funded through debt. The balance of Rs 159.85 crore is proposed to be funded from the unutilised IPO proceeds of Rs 163.04 crore, which were originally earmarked for the Aluminium Frame Facility, the remaining 300 MW EVA Encapsulant Facility and the remaining 500 MW Solar Module Facility through infusion in OSEPL. It is proposed to deploy the Net Proceeds towards the aforementioned solar cell manufacturing facility by Financial Year 2028.
The Board of Directors of the Company in its meeting held today, inter-alia, approved variation in the objects/ terms of utilisation of the IPO proceeds and modification of the time limit for the utilisation of the IPO Proceeds, subject to the receipt of requisite statutory/ regulatory approvals including the approval of the Shareholders of the Company.
Strategic rationale 
The Company evaluated long-term sourcing arrangements with established domestic cell manufacturers, including multi-year off-take commitments. The commercial terms available, covering both pricing and upfront security deposit requirements, were not aligned with the Company’s assessment of long-term value or its approach to prudent working capital management. This puts both availability and cost of the key input outside the Company’s control, a strategic exposure for a business anchored to DCR-dependent programmes (PM-KUSUM, PM Surya Ghar). A comparative evaluation found that setting up captive cell manufacturing capacity was the more economically viable option.
Backward-integrating into cell manufacturing directly addresses this: it secures supply, insulates OSEPL from spot price and deposit demands, deepens value addition from module assembly into cell manufacturing, and is expected to improve the margin and profitability at the consolidated level for the Company. 
The change re-directs scarce IPO capital from a low value-add, deferrable component (frames), surplus module capacity, and surplus EVA encapsulant capacity to the highest-leverage point in the chain (cells), where control of supply is now business-critical.
At a capacity of 1.2 GW, it will meet approximately 75% of the OSEPL’s overall cell requirement, with the balance continuing to be sourced externally in the near term.
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.
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.
India’s renewable energy ambitions, together with programmes such as PM-KUSUM and PM Surya Ghar, give us strong visibility of demand. We are confident this investment will strengthen our competitive position and create long-term value for all our stakeholders.”
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