Titan Energy in talks with PE firms to raise $140 million

Titan Energy Systems, a Hyderabad-based manufacturer and exporter of solar photo voltaic (SPV) modules, is in talks with leading private equity firms and other financial institutions to raise $140 million (around Rs 555 crore).

The amount, to be raised through a mix of debt and equity, will fund its upcoming project in the Fab City near Hyderabad.

"We hope to clinch the deal with PE firms by January and achieve the financial closure for the project immediately after the deal," said Rao SYS Chodagam, managing director.

He, however, refused to divulge the details about the private equity players and the equity being offered to them. Titan Energy is a public limited company in which 90 per cent of the stake is held by the promoters.

The proposed funds are meant for the 100 Mw capacity phase one solar cell manufacturing plant, which the company proposes to build in 9-12 months, once the financial closure is over.

It may be recalled that the company had recently announced to set up a 500 Mw photo voltaic (PV) cell project in Hyderabad at an investment of Rs 3,140 crore.

It has already sought 50 acres of land in the Fab City and the government is expected to formally allot the same soon.

The phase one project involves a capital expenditure of over $80 million (around Rs 320 crore) on equipment alone, according to Rao.

The proposed solar cell project is part of the company's plan to develop a complete value chain in PV portfolio to gain a better foothold in the export market.

It is expanding its existing solar module manufacturing plant on the outskirts of Hyderabad to 150 Mw from the present 50 Mw. Currently, it imports PV cells for module manufacturing.

"We are the only Indian company to get the certification for exporting 240 Mw modules," he said. This year, it expects to register a turnover of Rs 140 crore compared with Rs 80 crore last year.

SOLAR POWER

The amount, to be raised through a mix of debt and equity, will fund its upcoming project in the Fab City near Hyderabad

Titan Energy is a public limited company in which 90 per cent of the stake is held by the promoters

The proposed funds are meant for the 100 Mw capacity phase one solar cell manufacturing plant