About the Company

Founded in 1989, Waaree Energies is engaged in solar panel manufacturing and providing complete solar EPC solutions, having commissioned 1+ GW of solar EPC projects. It has a wide range of innovative products, including solar inverters, lithium-ion batteries for energy storage with a production capacity of 400MWh, solar thermal, and Solar & Industrial cables. The company is also aiming to be a vertically integrated company with cell manufacturing. It has recently acquired Indosolar and expanding its cell manufacturing to 5.4 GW. It has a strong presence in providing solar rooftops and solar water pumping solutions. The company has significantly expanded its aggregate installed capacity from 2 GW in Fiscal 2021 to 9 GW, as of March 31, 2023, which further increased to 12 GW as of June 30, 2024. After June 30, 2024, It has further commissioned 1.3 GW of solar module manufacturing facility at Noida, Uttar Pradesh through its subsidiary, Indosolar Limited. As of June 30, 2023, The company is operating five manufacturing facilities in Surat, Tumb, Nandigram, Chikhli in Gujarat and Noida spread over an area of 143.01 acres.

Strengths

1. The company is the largest manufacturer of solar PV modules in India with the largest aggregate installed capacity of 12 GW, as of June 30, 2024. It is well-positioned to capture industry tailwinds and growth prospects for solar energy in India and globally.
2. It has a diversified base of global and Indian customers with a substantial order book.
3. The company’s manufacturing facilities include NABL- accredited laboratory and automated production lines. Its automated production lines follow strict process control guidelines and international industry standards and practices.
4. The company has a pan-India retail network consisting of franchisees. As of March 31, 2022, 2023, 2024, and as of June 30, 2024, The retail network consisted of 373, 253, 335, 284 and 369 franchisees across India, respectively.

Risks

1. The company is dependent on its top 10 customers for nearly 40% of its revenues. The loss of any of these customers could have a material adverse effect on the business.
2. Export sales make its operations subject to risks and uncertainties of various international markets, in particular the United States.
3. The company’s projects are dependent on various government subsidies. In the event such subsidies do not materialize or the state or central government does not approve the entire subsidy amount, It may have to raise additional capital, which may materially impact its cash flows.
4. It derives 40% of its domestic retail sales from Gujarat and 85% from its top 5 states. Any adverse change in the demand in Gujarat or other states may hurt the business.
5. Restrictions on import duties relating to materials and equipment imported for its manufacturing operations as well as restrictions on or import duties levied on its products in the export markets may adversely affect the business prospects.