C H A I R M A N ' S O V E R
V I E W
We intend to spread our new manufacturing
capacities across two advanced technologies that could future-proof us for the foreseeable
future
16
: Websol Energy System Limited
We are confident that the
next three years will help us create a transformed
business foundation
Overview
I am pleased to
present this overview of the sector and the Company at this moment in our existence.
There was a time just a couple of years ago when there was a big
question with respect to our existence.
Most analysts had written our Company off.
However, I am happy to report that these have been some of our
achievements over the last two years.
We demonstrated the courage to completely scrap our available manufacturing line of a
legacy technology and replace the same with a futuristic technology to address the needs
of the future.
We demonstrated the course to build scale of a level that we had never addressed in our
business; we created a 600 MW solar cell manufacturing line
in our first phase (more than twice our erstwhile capacity).
We intend to commission 1800 MW in our subsequent expansion phases by
2027.
The result is that what used to be a 250 MW solar cell manufacturing Company until a
couple of years ago is expected to emerge as a 2400 MW (2.4 GW) solar cell manufacturing
Company in the next two years.
When these expansion phases crystallise, we expect to be one of the largest pureplay
solar cell
manufacturing companies in India.
What I have been asked at various
forums is how Websol is likely to enhance stakeholder value across the foreseeable future?
My answers are as below.
One, we intend to build one of the largest solar manufacturing capacities in the
country, almost at par with the capacities being commissioned by large industrial groups.
Two, we intend to spread our new manufacturing capacities across two advanced
technologies that could future-proof us for the foreseeable future.
Three,
we funded the first round
of capacity of 600 MW through a
combination of debt and net worth; we are attractively placed to generate surpluses that
will be used to fund our capacity growth through 2400 MW, strengthening shareholder value.
Four, we have protected our business from market volatility by entering into
buyback arrangements with customers. This has liberated us from carrying the market risk
on our books, empowering
us to be
singularly focused on efficient manufacturing.
Five, we are entertaining the prospects of integrating backwards into the
manufacture of ingots and wafers from
outsourced
polysilicon. Our prospects appear to be
secured by the fact that there is no Company in the country manufacturing these two
products in the face of growing demand; these products appear integral to Make in India
initiative and will strengthen our
backward integration, widening the
value chain and projected
profitability.
Six, the Company will
complement the manufacture of solar cells with 600MW of solar modules, enhancing our value
chain and generating incremental revenues.
Seven, the Company may extend to EPC rooftop solar installations and enter into
alliances with solar water pump manufacturers to supply solar modules.
I have no doubt that the focus will be to increase capacity utilisation and yield
followed by an accelerated investment in subsequent growth rounds.
Based on the national growth appetite for the entire solar cell value chain, we have
our hands full for the next few years.
The priority at our Company will be to create a strong Balance Sheet that provides our
Company with a sustainable growth platform that
enhances value for our shareholders in a sustainable manner.
We are confident that the next two
years will help us create a transformed business foundation. Our best years are just round the corner.
Sohan Lal Agarwal
Chairman