Key Takeaways
India's module and cell manufacturing capacity is growing far faster than demand, making consolidation inevitable as pricing pressure intensifies
INOX is leveraging its presence across wind, solar, storage, IPP, and O&M, while expanding into cell manufacturing and evaluating upstream integration into wafers and ingots
Sharma sees hybrid renewable projects, complete energy solutions, and tighter quality control as the key differentiators in an increasingly competitive market
Intro
India's solar manufacturing sector has expanded at an unprecedented pace, creating significant overcapacity and intensifying competition across the value chain. In this interview with TaiyangNews Managing Director Michael Schmela, INOX Solar CEO Devesh Sharma discusses how the company plans to navigate the changing landscape by pursuing vertical integration, offering hybrid renewable energy solutions, and maintaining a strong focus on quality. He also shares his views on manufacturing consolidation, export opportunities, localization, the role of storage, and why INOX aims to become one of India's leading integrated renewable energy companies over the next 5 years.
TaiyangNews: These are exciting times. The Indian market is growing rapidly and becoming increasingly important globally – not only from the demand side but also as a manufacturing hub. Supply is growing even faster than demand, creating significant competition. How do you view this landscape?
Devesh Sharma: Solar manufacturing has expanded much faster than anyone expected. Today, module manufacturing capacity in India is around 170-180 GW, while annual demand is unlikely to exceed 50 GW in the near term.
Most companies are now investing in cell manufacturing. According to MNRE data, the Approved List of Cell Manufacturers (ALCM) already represents around 32 GW of capacity. With additional cell plants – including ours – coming online, total capacity will continue rising significantly.
From June 1, domestic content requirements and the ALCM framework will increase demand for Indian-made cells, but I believe domestic manufacturing capacity will be sufficient to meet that demand.
Current DCR module prices remain high, but I don't expect them to last. Competition will become intense. Companies that don't invest in cell manufacturing will need to rethink both their sourcing strategies and the markets they intend to serve.
INOX has several advantages. We are a vertically integrated company with our own independent power producer (IPP) business, which consumes a significant portion of our module production. We are also a major player in the wind sector under the INOX Wind brand, enabling us to offer hybrid renewable projects in which wind and solar complement each other.
In addition, we are commissioning our own cell manufacturing facility. Beyond manufacturing, INOX Green operates nearly 20 GW of renewable assets under operation and maintenance (O&M), making it the largest listed O&M company in India. Repowering projects will create another opportunity for deploying our own modules.
Overall, these businesses help diversify our risk. That said, module manufacturing today is clearly oversupplied, making pricing extremely competitive.
TaiyangNews: Why did INOX decide to enter manufacturing? Modules are one thing, but cells are considerably more complex. Coming from a wind background, what drove that decision?
Devesh Sharma: Manufacturing has always been part of our DNA. Our parent company, INOXGFL, is a chemical company – Gujarat Fluorochemicals (GFL). It has decades of experience in advanced chemical manufacturing. Complex manufacturing processes are one of our core strengths, so moving into solar manufacturing was a natural extension of those capabilities.
TaiyangNews: You mentioned the advantages of combining wind and solar, particularly for smoothing generation profiles.
Devesh Sharma: Exactly. Most new projects are hybrid projects. They combine wind, solar, storage and, increasingly, pumped hydro to deliver round-the-clock renewable power.
We are already active in wind, solar, and storage, so we can offer solutions across the entire renewable energy value chain.
TaiyangNews: You started with modules and are now moving into cells. How do you see your future integration strategy? Are batteries, wafers, or other upstream segments also part of the plan?
Devesh Sharma: Through GFL, we already supply fluorochemicals globally, including materials used in battery applications.
From a technology perspective, moving further upstream into batteries or storage systems would not be particularly difficult for us. However, today's economics do not justify such investments.
We are, however, seriously evaluating wafer and ingot manufacturing. Much will depend on future government policies. Once those policies become clear, we will determine our next steps.
TaiyangNews: Given the significant overcapacity in India, exports appear to be an obvious opportunity. What is your export strategy?
Devesh Sharma: Markets such as the GCC and UAE are currently dominated by Chinese suppliers, whose pricing remains extremely competitive. That makes those markets difficult for Indian manufacturers.
INOX has also been evaluating opportunities in Africa through our CPC and IPCA initiatives, but India itself continues to offer strong demand, and we already have a substantial order book.
Previously, we entered into an agreement with LONGi under which modules for LONGi's Indian customers would be manufactured at our facility. Our primary focus remains the Indian market, although we continue evaluating export opportunities.
TaiyangNews: How does that arrangement work now, especially with the ALCM?
Devesh Sharma: Once ALCM requirements are fully implemented, the bill of materials (BOM) will comply with the regulations, while cell processing and module manufacturing will take place at our facility.
Some customers still prefer LONGi-branded products. We manufacture those modules at our factory in accordance with LONGi's specifications, under the LONGi brand.
TaiyangNews: So you effectively serve as LONGi's OEM manufacturing partner in India?
Devesh Sharma: Yes.
TaiyangNews: Will you have some exclusivity there?
Devesh Sharma: LONGi has already made it public through social media that it is working with INOX.
TaiyangNews: Is this arrangement exclusive to India?
Devesh Sharma: It is non-exclusive; there is no mention of it.
TaiyangNews: Has production already started?
Devesh Sharma: Not yet. Our factory has been fully booked, and LONGi modules are currently undergoing testing at TÜV laboratories. Once those certifications are completed, production will begin.
TaiyangNews: Despite all the overcapacity, your factory is fully booked?
Devesh Sharma: Yes. We have secured several large projects with companies including L&T, SJVN, NHPC, Integra, and Vayu, as well as our own internal projects.
TaiyangNews: Are those mainly for India or export markets?
Devesh Sharma: They are entirely for India.
TaiyangNews: Are you also looking at export markets?
Devesh Sharma: We would be interested if we get an opportunity and a good price.
TaiyangNews: Technology-wise, you currently manufacture TOPCon modules?
Devesh Sharma: Yes. We manufacture G12R TOPCon modules in the 620-625 W range.
TaiyangNews: And that technology will continue after your cell production starts?
Devesh Sharma: Yes, absolutely.
TaiyangNews: Tell us a little about your EPC and O&M businesses.
Devesh Sharma: Our O&M business is very stable. The focus is on maximizing plant performance and productivity. It is led by Mr. S.K. Mathusudhana, CEO of INOX Green, which continues expanding its operating portfolio.
TaiyangNews: Do you also provide O&M services for third-party projects? And are they your competitors as well?
Devesh Sharma: Yes, for many companies. In that segment, I believe we are the market leader.
TaiyangNews: What is your strategy for your own projects? Do you develop and retain them, or eventually sell them?
Devesh Sharma: At present, we retain all our projects. Future decisions will depend on our Executive Director, Devansh Jain, but currently our strategy is to own and operate them.
TaiyangNews: So development, EPC, and O&M are all handled internally?
Devesh Sharma: Yes.
TaiyangNews: Since your project business is larger than your module production, do you still procure modules externally?
Devesh Sharma: Previously, we did, but today our annual requirement is only around 1-1.5 GW, which we can comfortably supply ourselves.
TaiyangNews: Is complete in-house integration your long-term strategy?
Devesh Sharma: Yes. It gives us better quality control while also allowing us to manage supply schedules and lead times much more effectively.
TaiyangNews: Would you say that integrated approach is your biggest competitive advantage?
Devesh Sharma: Our biggest advantage is that we can provide customers with a complete renewable energy solution. Anyone entering the renewable sector can find everything they need within the INOX ecosystem.
TaiyangNews: Where do you see INOX in 5 years?
Devesh Sharma: We aim to be among the top 5 companies across the renewable energy value chain – not only in module manufacturing but also in wafers, renewable generation, operations and maintenance, storage, and the broader renewable energy business.
TaiyangNews: Are you considering expanding into other system components, such as inverters or mounting systems?
Devesh Sharma: At present, no. Our focus is on producing and supplying renewable electricity rather than manufacturing each component individually. Instead, we are looking at expanding into new markets, including potentially the United States.
TaiyangNews: Thank you for the interview.
This is an edited version of the transcript, and the full version can be watched here.
