Candida Moraes

K. Subramanya, COO, Tata BP Solar, discusses the Indian and global renewable energy industry, and the company's plans to tap potential markets

Tata BP Solar, a joint venture between Tata Power Company and BP Solar, one of the largest solar power companies in the world, is determined to light up a great many lives over the next few years. Tata BP Solar chief operating officer K. Subramanya elaborates on plans of becoming a $300-million company by 2010, and how it is moving from strength to strength.

Considering the fact that Tata BP Solar has established a name for itself not only in the domestic market but also internationally, has the company any investment plans with regard to production expansion, etc?
Tata BP Solar has plans of investing over Rs 100 crore in 2006 in expanding its capacity. The company's track record has been very good so far and we have been growing at a rate of about 20-25 per cent every year. We hope to sustain this and want to be a $300-million company by 2010.

Right now we are at $100 million. The company is readying itself for the Tata Business Excellence Model process in the coming years. With regard to production capacity, we aim to have 43-MW solar cell manufacturing capacity in the near future. Right now our solar cell manufacturing capacity is about 16 MW.

How significant a role do you think renewable energy will play in the near future? What are your plans with regard to this?
India is a land of plentiful sunshine, and in that respect we are really blessed. Solar energy is perhaps the most important form of energy, not only for the future but also today. This form of energy is not only competitive but is also plentiful. With regard to the rural sector, there is tremendous scope and we hope to make more inroads in the sector.

In recent addresses, the president and prime minister have mentioned that there are 125,000 villages without electricity and that by 2012 every household should have electricity. Solar energy can come in use for quick results. Having said this, I would like to add that Tata BP Solar is making an impact in the industrial sector and is also pushing its presence in the urban and semi-urban areas. For us, all sectors are of importance and we will focus on all-round growth.

Tata BP Solar was planning several strategic diversifications to compliment and augment its current product mix. Have any new products been added?
Tata BP Solar's range of products include street and portable lighting, water pumps, water heaters, vaccine refrigerators, power plants, products for telecom, the railways, military and offshore platforms. We have added many new products for both the solar photovoltaic and solar thermal markets.

One of our new products — Sun bank — is a solar power solution for rural bank branches. We have installed Sun bank in branches of the State Bank of Mysore and Corporation Bank, and have received an order of about Rs 40 million from Vijaya Bank to install the solar power system in its Karnataka branches.

Ecogenie is a solar power pack and provides longer back-up power compared to a regular inverter. We have just received an order of about 100 pieces from Chattisgarh and have successfully installed many systems in Karnataka and Kerala.

Lotus solar water pumps are used in urban middle-class homes and have been received well.

Tata BP Solar is expanding its range of highway furniture products with solar road studs and direction markers called Arrow Boards. In an effort to move ahead of the competition, we have also introduced a new range of solar water heaters called Zing, which has been a major success.

Is the company looking to increase its market share in India as well as in other countries? Are you looking at adding new markets?
We plan to focus and consolidate our presence in the existing markets. This is primarily due to the supply constraints of the raw material — silicon — facing a global shortage. We have a market share of about 35 per cent and are confident of sustaining this. Last year, we exported about 60 per cent of our products primarily to Europe and the US.

What progress has been made on the Indian Institute of Astrophysics order in Leh which was scheduled for August this year?
This project has been completed on schedule. We have received several more orders in the states of Uttaranchal, Uttar Pradesh, Bihar and West Bengal especially in the border areas.

How important is the dealership network? Are you looking to expand this?
In a large country like India, a good network of dealers is crucial to a business and we are looking at strengthening our existing network. We have about 120 quality dealers, and have a target of at least 300 quality dealers by 2010. To achieve this, we are stressing on dealers who value our way of work and discipline.

Could you give us a brief overview of the renewable energy industry in terms of the current scenario?
The renewable energy industry is doing extremely well right now. The global industry is growing at 35 per cent and is projected to grow at that rate for the next 5 years. The main markets today are Germany, Japan, the US, Italy and Spain. China, Korea and Thailand are also developing into important markets. However, having said that, India has the biggest potential with so many months of sunshine. Demand is also bullish and the outlook for the industry is extremely bright for the next few years, provided pragmatic policies are rolled out by the government of India.

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Uploaded on January 24, 2006