India is the third largest consumer of energy in the world and consumption is projected to continue rising over the years. Supported by industrial growth, urbanisation, government policies, and favourable geopolitics, the country has achieved an installed capacity exceeding 400 GW. The Indian power sector employs a wide range of fuel sources, including traditional sources such as coal, oil, and gas, alongside environmentally sustainable sources such as solar, wind, biomass, industrial waste, and both large and small hydro plants.
With a population of approximately 1.4 billion and the world’s fastest-growing economy, India’s energy demand is growing rapidly. India has set ambitious renewable energy targets with 500 GW non-fossil energy capacity by 2030, fulfilling 50% of its energy requirements through renewable energy by 2030; reducing total projected carbon emissions by one billion tonnes by 2030, reducing the carbon intensity of the economy by 45% by 2030 and achieving the target of net zero emissions by 2070. Analysts are quite bullish on a small-cap company based in Eastern India by the name of Websol Energy System Limited.
It is in the business of producing and selling solar photovoltaic cells and modules since 1994 and was established as an Export-oriented unit in a joint venture with WEBEL, an Electronic Development Corporation of Government of West Bengal. The company has a technical collaboration with Helios Technology of Italy. Since there was a growing need for high-efficiency solar cells and modules, Websol Energy Systems installed a photovoltaic cells facility in 2008 and even obtained international certifications for 180Wp/220Wp solar modules. Subsequently, it increased the cell and module capacity to 20MW at its Salt Lake factory and also started a 120MW expansion at its Falta facility in West Bengal.
During 2009 the company found that as reject semiconductor wafers became scarce around the world, Websol ramped up its capacity to 30MWp to process solar-grade wafers by setting up a turnkey plant from Germany and a 30MWp module assembly line from NPC of Japan. Both product lines were set up in a new facility at the SEZ Zone in Falta, West Bengal. Websol Energy achieved cell efficiency of 17.2% in monocrystalline wafers and produced 240 Wp of modules making it one of the best levels achieved worldwide. The company started adding more lines at its facilities every year and by 2015 the capacity expanded to 250MW cell lines.
Plus a 250MWp fully automated module assembly line was set up to convert the cells into solar panels. The company’s manufacturing operations are certified as per international standards to ensure consistency and high-quality products to customers while caring for the environment, safety, and health of employees and society. Its ISO 9001:2015 quality control processes ensure solar cells and modules meet the required standard for performance and durability. The company is aligned to its mission with the Govt of India’s objective to generate 300 GW of power from Solar PV by the year 2030 and reduce carbon emissions by one billion tonnes by the end of the decade.
To address the growing need for solar cells and modules in domestic and international markets, Websol Energy is expanding solar modules capacity to 550MW and solar cells capacity to 2.4 GW solar cells in the two phases. The first phase comprises 600 MW solar cells and 550 MW solar modules while the second phase comprises 1.8 GW solar cells.
The company is continuously working towards the goal of providing electricity to remote areas through off-grid solutions, exploring new markets to increase customer base for Solar PV, increase cell efficiency through process improvement & technical collaborations.
The Websol Energy stock is quoted at Rs 675 on the bourses and brokers and analysts are expecting very good quarterly financial results next month on the back of a good order book and higher net margins.