Shakti Pumps’ Rs 11 Crore Solar Bet: Is A Bigger Move Coming?

Shakti Pumps has invested Rs 11 crore in SESL through cash subscription to equity shares. Since SESL is a wholly owned subsidiary, the equity shares will be issued from time to time as per the agreement. The investment is for establishing a greenfield facility for manufacturing Solar DCR cells and Solar PV modules at Pithampur in Madhya Pradesh. The planned facility will have a production capacity of 2.20 GW.

SESL currently manufactures solar structures and operates in solar rooftop and other businesses. The new facility will expand its operations into Solar DCR cell and Solar PV module manufacturing.
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Shakti Energy Solutions was incorporated on September 6, 2010, and is a wholly owned subsidiary of Shakti Pumps. The company reported turnover of Rs 239.11 crore in FY26. SESL's turnover stood at Rs 216.53 crore in FY25 and Rs 139.59 crore in FY24. Based on these figures, FY26 turnover increased by around 10.7 per cent year on year.

The company has stated that no government or regulatory approvals are required for the investment. The transaction was completed on the same day as the disclosure. The filing also states that the investment does not fall under a related party transaction. As SESL is a wholly owned subsidiary, the arm's length requirement is therefore not applicable.

The stated objective of the investment is to set up the 2.20 GW Solar DCR cell and Solar PV module manufacturing plant in Pithampur. The disclosure does not provide the overall project cost or commissioning timeline for the proposed facility. The investment therefore marks an expansion of SESL's existing solar structures and rooftop solar operations into cell and module manufacturing.

Disclaimer: This article is for informational purposes only and should not be construed as investment advice.