Published on April 30th, 2015 | by Smiti1
Indian Auto Parts Maker To Diversify Into Solar Power With $250 Million Investment
April 30th, 2015 by Smiti
The Indian solar energy market is abuzz with new entrants and huge capacity expansion plans.
One of the leading automotive equipment manufacturers and suppliers in India, JBM Group, has announced plans to install 300 MW of solar power capacity over the next 3 years. The company is also planning to expand into wind and biomass-based power generation and expects to start work on non-solar renewable energy business by the end of this year.
With these ambitious plans the company hopes to become an independent power producer, with plans to invest around $250 million into this program. It eyes 15% of the total company revenue from renewable energy business over the next 3 years. To set up the renewable energy capacity, the company will invest 30% of the total capital requirement while seek debt financing for the balance 70%.
JBM Group is also eyeing capacity addition in utility-scale as well as rooftop solar power market. While the utility-scale market is well-matured with big names and huge competition, the rooftop solar power market is yet to achieve a similar level of maturity. The company is said to be awaiting clarity on the net-metering policies of various states before making a sizeable investment in the rooftop solar power market.
JBM Group has the advantage of being an engineering consultancy firm as well, so it can set up solar power projects itself and also do the same for other companies. Several industries in India are now planning to expand their captive power generation capacity through renewable energy technologies. This would, thus, be a high growth potential market segment for JBM Group.