|
Shobha Ramswamy
In a little over a decade since it was set up, Tata
BP Solar has secured its place in the sun.
In the 1980s, when BP Solar,
the second largest solar company in the world, and the
Tata Group came together to form a renewable energy
company in India, the manufacturing technology for the
venture was to be imported from the former's plants.
But today Tata BP Solar has reversed the flow. It now
leads in technology development in crystalline cells.
The company is also developing and exporting new products.
"We are the leading manufacturers
and exporters of solar cells and modules. Last year,
for the first time, Tata BP Solar was selected among
the BP Solar factories to expand its module manufacturing
capacity to 38MW. With this, we have become the largest
module manufacturing site with the BP Solar world and
possibly the largest single location site (outside Japan)
in the world,” says managing director Arun K. Vora.
The leading edge technology of
silicon nitrate coating process was implemented first
in Bangalore. Later, the plants in Australia and the
US adopted it. The company’s global system-engineering
department, manned by Indian engineers, supplies engineering,
designs and drawings to partner plants in the US, Spain
and Australia.
Says Mr Vora, “Our trigger
was BP Solar’s faith in our ability to deliver
internationally competitive products. Once they started
sourcing from us, we never looked back.” In a confirmation
of that faith, Mr Vora was recently put in charge of
all BP Solar markets, except the US and Europe. That
is certainly a big leap for a company with such a humble
beginning.
Lighting up the road ahead
Says Mr Vora, “Our vision is clear. The world’s
best solar products, in terms of quality, performance
and price, should come from our factories.” Tata
BP Solar's presence spans America, Europe, Australia,
Africa and Asia. Nearly 55 per cent of the company's
total sales come from exports that stand at Rs 160 crore.
Of this, 95 per cent comes from developed countries
like the US and Europe. The company has drawn up an
action plan to achieve its Rs 500-crore target.
In the last seven years, the
company has made some very successful forays into the
neighbouring markets. Currently, it enjoys a 67 per
cent market share in Bangladesh, 25 per cent in Nepal,
35 per cent in Sri Lanka and over 90 per cent in Bhutan.
In Nepal, the company has won every tender in the telecom
industry. “These markets are very price sensitive,
yet we have never sold as the cheapest. Superior quality
and excellent after sales services have always been
our business mantra,” says K. Subramanya, executive
vice president, Commercial Operations, Tata BP Solar.
In each of these markets, the
company has tied up with long-term partners who share
the company's vision and passion for renewable energy.
Tata BP Solar is aware that its networking and partnerships
would be difficult to duplicate for even the global
majors. Afghanistan is its latest market. Apart from
the neighbouring countries, the Central Asian belt is
also emerging as area with great potential.
However, the company's plan is
not just to increase market share, but also to grow
the market itself. The strategy is to hit the markets
with innovative products every year. "Our aim is
to create newer businesses, not only to grab market
share," says Mr Vora. Tata BP Solar has consistently
been investing in product development to this end.
The company designs and manufactures
solar power generating systems apart from solar cells
and modules. It has developed and marketed a wide range
of products and systems covering lighting, water pumping,
telecommunications, railway signalling and navigational
aids. The company has also launched solar powered Internet
kiosks and solar domestic water-heating systems.
The company’s research and
development team has developed a range of products and
applications for the Indian and export market, including
solar cookers, vaccine storage refrigerators, pumping
systems, lighting systems, street lights, solar power
packs for rural clinics, water purifiers and water heating
systems.
The company recently launched
three products: an international model of solar water
heating systems with a capacity of 300 litres per day,
high efficiency solar cells to increase current and
voltage in solar cells and Building Integrated Photovoltaic
(BIPV) modules, which can be used as a substitute for
glass in buildings to generate power. Tata BP Solar
was, in fact, the first in India to design, engineer
and market BIPV.
The company has also designed
a modern solar water heater for the international market,
which is undergoing testing and qualification in Europe.
The company expects to be able to market it by March
2004.
“Our products and services
are globally competitive not only in terms of quality
and price but deliveries as well," says Mr Subramanya.
The company's modules and deliveries set it apart in
its markets. Most global companies sell only their modules
to individuals and government agencies. The customer
has to buy other equipment, such as batteries and electronics,
from other vendors. Such piecemeal installations, completed
by a third party, very often result in compatibility
problems and after sales service also becomes a hurdle.
But Tata BP Solar’s approach
is that of a complete and integrated solar energy solutions
company. Every project the company handles, regardless
of its size, is studied from all angles before solutions
are offered. The company provides the entire gamut of
products and services through a single outlet. Its task
includes supplying batteries and looking after the electronics,
installation and maintenance.
Tata BP Solar monitors the constantly
changing global solar market and tries to close the
gap between expectations and deliverables. Technology
is being perfected and continuously upgraded. The company
is investing in research and development. The focus
is on continuously reducing the cost of solar power
by increasing cell efficiency and reducing product and
processing costs.
Currently, the company is developing
a process to achieve 16 per cent efficiency cells from
the current 15 per cent ones. The yield losses in the
Tata BP plant are already the lowest among all BP Solar
factories. The company is benchmarking itself against
the international leaders. "Going global is a continuous
learning experience for us. Globalisation is about people,
attitudes and culture. Our people have to learn to quickly
adapt to change. Otherwise they will be out of the race.
We are training our staff and have identified 20 managers
who will lead us into our next phase of growth,”
says Mr Subramanya.
Another day
The renewable energy industry is growing, the market
for products that capture electricity from the sun has
grown at about 30 per cent a year since the 1990s. Right
now, solar power accounts for a very small per cent
of all electricity generated globally. However, depleting
fuel reserves, rising energy costs and the environmental
concerns are compelling the world to consider renewable
energy as a long-term alternative.
As solar energy is more likely
to complement the power grid than replace it, it will
be used for niche applications in the urban areas. Its
real future lies in regions untouched by the power grid,
especially rural and remote areas. The greatest advantage
solar modules have in these areas is that they can be
easily installed anywhere. They have no moving parts
and are relatively maintenance-free. “The off grid
world will be our main customer for complete systems,
while in the developed world, we will market solar modules,”
says Mr Vora.
It has been projected worldwide
that at 25 per cent annual growth, photovoltaic (PV)
installations will reach 2500 MW a year by 2010, compared
with 500 MW in 2002. Solar power is on a growth curve
in the world; and India’s growth rate is pegged
at 20 per cent.
All this has lured investments
from large corporations, many of which are better known
for electronics or even for pumping oil. Sharp is the
world's largest provider of solar products, followed
by BP Solar, Kyocera, Shell Solar and Sanyo.
Tata BP Solar’s capacity
is almost 6 per cent of the worldwide solar sales in
2003. But the future looks even brighter. In fact, it
looks solar.
Other articles on the Tata
Group and globalisation:
Uploaded on January 5, 2004
|
