Oswal Pumps Limited plans to establish a 1.2 GW TOPCon solar cell manufacturing facility through its wholly owned subsidiary, Oswal Solar Energy Private Limited (OSEPL), with commercial production expected to begin by April 2028. Announced on 10 October 2026, the proposed facility is aimed at strengthening the company’s backward integration and reducing its dependence on external solar cell suppliers.
The facility will manufacture solar cells for captive consumption by OSEPL’s in-house solar module production lines. According to the company’s announcement, the investment is intended to secure a reliable supply of domestic content requirement (DCR)-compliant cells, reduce exposure to spot-market price volatility and improve control over input costs and production timelines.
₹456 Crore Investment Planned
The total project cost is estimated at approximately ₹456 crore. Of this, around ₹296 crore is proposed to be funded through debt, while ₹159.85 crore is proposed to come from the company’s unutilised initial public offering (IPO) proceeds.
The proposed reallocation of IPO proceeds requires the necessary statutory and regulatory approvals, including shareholder approval. The company’s board has approved the proposed variation in the utilisation of these proceeds and the modification of the utilisation timeline.
The planned facility is expected to meet approximately 75% of OSEPL’s overall solar cell requirement, with the balance continuing to be sourced externally in the near term.
Backward Integration to Strengthen Solar Manufacturing
Oswal Pumps said it evaluated long-term sourcing arrangements with domestic solar cell manufacturers but found that the available commercial terms, including pricing and upfront security deposit requirements, did not align with its assessment of long-term value and working capital management.
Establishing captive cell manufacturing capacity is therefore intended to give the company greater control over supply, costs and quality. The company also expects the move to strengthen its position in government-backed solar programmes, including PM-KUSUM and PM Surya Ghar, where domestic-content requirements are relevant.
The proposed facility will use tunnel oxide passivated contact (TOPCon) technology, which is used in high-efficiency solar cells. Oswal Pumps expects the technology to support higher-efficiency modules and improved energy yield.
The investment represents a shift in capital allocation towards solar cells, which the company has identified as a critical supply-chain requirement. Its existing and planned module manufacturing lines are considered sufficient for current requirements, making cell production the priority for further integration.
Oswal Pumps is also developing its broader solar manufacturing capabilities through solar module production and related component facilities. Bringing cell manufacturing in-house is expected to extend its value addition beyond module assembly and strengthen its integrated solar solutions business.
The project’s progress will depend on implementation, funding and the completion of required approvals. Commercial production is targeted for April 2028, after which the facility is expected to reduce the company’s dependence on external cell procurement and support its participation in domestic solar programmes.
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