Vikram Solar has announced a comprehensive investment plan worth ₹10,700 crores to expand its manufacturing capabilities over the next 24-30 months. This significant capital allocation represents a major strategic initiative aimed at strengthening the company's position in the renewable energy sector.

Investment Allocation Strategy

The company's investment plan is structured across two primary manufacturing segments, with a clear timeline and funding strategy:

Manufacturing Expansion Focus

The investment strategy demonstrates Vikram Solar's commitment to expanding across critical components of the renewable energy value chain. The allocation of ₹6,400 crores toward modules and cells manufacturing represents the larger portion of the investment, reflecting the company's focus on strengthening its core solar panel production capabilities.

The battery manufacturing segment will receive ₹4,300 crores, indicating the company's strategic move to diversify into energy storage solutions. This expansion aligns with the growing demand for integrated renewable energy systems that combine solar generation with storage capabilities.

Funding Requirements

The company has outlined its funding strategy for this ambitious expansion:

Strategic Timeline

Vikram Solar has established a 24-30 month timeline for implementing this comprehensive investment plan. This extended timeframe allows for systematic capacity building and ensures proper integration of new manufacturing capabilities across both product segments.

The company's requirement for ₹2,400 crores from internal funds demonstrates its financial planning approach and commitment to supporting the expansion through available resources. This internal funding component represents approximately 22.4% of the total investment value.

Vikram Solar has announced strategic financial targets and provided updates on its major manufacturing expansion, signaling strong growth prospects in India's solar energy sector. The company has set clear expectations for its non-DCR business performance while advancing its ambitious manufacturing capabilities at the Gangakondan facility.

Financial Performance Targets

The company has established specific profitability benchmarks for its business operations, particularly focusing on its non-DCR segment performance.

Vikram Solar expects its non-DCR business to achieve steady EBITDA margins within this range, demonstrating the company's confidence in maintaining consistent profitability across its diversified product portfolio. This target reflects the company's strategic focus on optimizing operational efficiency while expanding market presence.

Gangakondan Manufacturing Expansion

The company has reported positive progress at its Gangakondan manufacturing site, where significant capacity additions are underway. This facility represents a cornerstone of Vikram Solar's expansion strategy, incorporating both module and cell manufacturing capabilities.

The 6 GW module facility is progressing according to schedule, with commissioning planned for Q1 FY27. This substantial manufacturing capacity will significantly enhance the company's ability to meet growing domestic and international demand for solar modules.

Cell Manufacturing Milestone

The 12 GW cell manufacturing plant at Gangakondan represents an even more ambitious component of the expansion project. The facility is targeting production of its first cell by December 2026, marking a critical milestone in the company's vertical integration strategy. This cell manufacturing capability will provide Vikram Solar with greater control over its supply chain and manufacturing processes.

Strategic Implications

These developments position Vikram Solar for substantial capacity expansion while maintaining focus on profitability metrics. The combination of targeted EBITDA margins and significant manufacturing capacity additions demonstrates the company's balanced approach to growth and financial performance. The Gangakondan facility's dual focus on both module and cell manufacturing creates opportunities for enhanced operational synergies and cost optimization across the production value chain.