Hitesh Doshi, the Chairman and Managing Director of Waaree Energies, noted that the Approved List of Models and Manufacturers (ALMM) is among the non-tariff barriers promoting domestic manufacturing under the Make in India initiative. The short-term implementation of ALMM has led to an increase in Indian module manufacturing capacity and exports. Doshi anticipates that similar measures will affect the entire value chain, with Waaree planning to expand across these areas.
With numerous conglomerates, including Tatas and Adanis, announcing their capital expenditure plans in this sector, there is some concern about a potential oversupply in the upcoming years. However, Doshi highlighted the significant demand in areas like solar energy, hydrogen, and batteries, suggesting that Waaree’s plan aligns with meeting these needs. The global perception of India as an alternative supply chain source reduces concerns about a potential glut.
In the domestic sector, initiatives like ALMM and various import measures are expected to continue supporting domestic manufacturing. The Prime Minister’s Make in India initiative emphasizes domestically made solar panels and other products within the energy value chain, indicating ongoing government support.
Regarding cost differences, Indian manufacturing is competitive, with cost differences not exceeding two cents compared to major global manufacturers. Continued backward integration and increased capacities are expected to close this cost gap further.
As Waaree Energies expands its global footprint, particularly with the anticipated operation of its manufacturing facility in the United States, the company is addressing risks related to geopolitical factors and over-protectionism. The focus on energy security globally positions Waaree to capitalize on these opportunities.
Financially, Waaree is experiencing rapid growth. From a PAT of 80 crore in FY22 to 1,275 crore in FY24, the company is expanding from 13 gigawatts to 21 gigawatts in module capacity. This growth will be supported by increased cell manufacturing capacity and an additional 6 gigawatts from IPO funds. The company’s plans for geographical and product range expansion are aimed at driving both top-line and bottom-line growth, although exact future figures remain uncertain.
Regarding margins, Doshi believes that backward integration, particularly in Make in India cells, will enhance profitability. He noted current margins are at 13-14%, compared to peers at 16-17%, and expressed optimism for future increases in profit after tax (PAT) and top-line figures.
Finally, Doshi expressed satisfaction with Waaree Energies’ strong listing performance, which significantly exceeded the issue price. He attributed investor interest to confidence in the green energy sector and the Prime Minister’s vision, underscoring that the significant number of applications reflects a broader trust in Waaree’s direction. Despite the favorable market response, there was no regret regarding the pricing of the initial public offering, as the confidence in Waaree and the sector was a source of pride for the company.