RMC Switchgears hits the roof after announcing Rs 100-cr solar facility in Jaipur

RMC Switchgears hit an upper circuit of 5%, at Rs 1,104.45, after the company announced its plans to set up a Rs 100-crore solar products manufacturing facility in Jaipur, Rajasthan.

According to the exchange filing, the company revealed that it intends to leverage its manufacturing strengths to establish a state-of-the-art solar module manufacturing plant with an annual production capacity of 1 GWp. Additionally, it will produce solar module mounting structures with the same capacity at a new site in Badodiya Village, Chaksu Tehsil, Jaipur, Rajasthan.

The project, estimated to cost Rs 100 crore, will be executed through RMC Green Energy, a subsidiary of the company. As part of the plan, RMC will increase its ownership in RMC Green Energy from 51% to nearly 100%, making it a wholly owned subsidiary through equity infusion and the purchase of shares in a fresh issue.

 

This strategic move aims to enhance RMCs operational control and strengthen its renewable energy capabilities. The new facility will be located adjacent to RMCs current operational plant, ensuring seamless integration.

The capital expenditure for the project will be funded through a mix of internal accruals, equity, and debt. The company expects both plants to be operational by July 2025, with commercial revenues anticipated from August 2025.

As RMC actively explores new opportunities in solar engineering, procurement, and construction (EPC) and Independent Power Producer (IPP) projects, this expansion marks a crucial step toward backward integration. The Solar Module Manufacturing Plant will reduce RMCs dependency on external suppliers by catering to the internal requirements of ongoing and future projects. This integration will enhance cost efficiency, ensure timely execution, and improve supply chain reliability. Apart from the captive consumption of these products, strong market demand will ensure a robust top line and bottom line for the company in FY 26.

This initiative aligns with RMCs Vision 2030 of becoming a Rs 5,000-crore enterprise while supporting Indias ambitious renewable energy targets. The plant will contribute to RMCs ability to execute large-scale Solar EPC projects efficiently and solidify its presence in the renewable energy ecosystem.

Ankit Agrawal, CEO and whole-time director of RMC Switchgears, said, This solar module & module mounting structure manufacturing plants is a strategic backward integration for RMC, enabling us to reduce external dependencies and strengthen our ability to deliver Solar EPC and IPP projects seamlessly.

By leveraging RMC Green Energy, we are not only supporting our current pipeline but also creating opportunities for commercial sales, positioning RMC as a significant player in the solar module market. This investment reinforces our commitment to innovation, sustainability, and delivering long-term value for our stakeholders. The addition to these lines will add the maximum products in our range such as EPCboth solar and transmission, modules, structures, solar electrical panels and solar distribution boxes, etc.

RMC Switchgears is primarily engaged in the business of switchgear engineering and ECI contracts for the power distribution/transmission sector.

On a full-year basis, the company's consolidated net profit jumped 26.8% to Rs 14.89 crore in FY24 as against Rs 11.74 crore posted in FY23. Revenue from operations surged 37.8% to Rs 172.63 crore in FY24 as compared to Rs 125.27 crore recorded in FY23.

Powered by Capital Market - Live News