Sunkind India is moving into solar module manufacturing and has placed an order worth Rs 12 bn to Rs 15 bn to procure solar cells for the new business vertical. The company has reported that the investment covers procurement of cells required for module assembly and will underpin the firm’s supply chain for modules. The move is intended to support the firm’s existing engineering, procurement and construction (EPC) and independent power producer (IPP) projects in the commercial and industrial segments.

The company has established a one gigawatt (GW) solar module manufacturing line near Jaipur, Rajasthan, which is currently under trial and is scheduled to be commercially operational by June. Commercial manufacturing is due to commence next month according to the firm’s timeline and the line will assemble modules from procured cells. Solar panels are assembled from modules that contain cells while cell production depends on ingots and wafers in the upstream value chain.

Sunkind India has signed an agreement with a domestic solar cell manufacturer to source one GW of domestic content requirement (DCR) solar cells to ensure continuity of supply for the new vertical. The supply pact is intended to secure access to approved local cells mandated under the government’s ALMM-II rules which take effect on June first. The company indicated that the procurement order would cost in the region of Rs 12 bn to Rs 15 bn.

The firm said in its statement that bringing module production in house will help it execute its EPC and IPP contracts more efficiently and reduce dependence on third-party module suppliers. Details of the cell supplier have not been disclosed because of a non-disclosure agreement with the manufacturer. The company remains focused on the commercial and industrial market and is positioning the new manufacturing capability as a strategic support for its project pipeline.