Tata BP Solar to invest Rs 150 cr to up output
Business Standard — December 1, 2005

Tata BP Solar India, a joint venture firm of Tata Power and energy major BP (British Petroleum) Solar, will invest over Rs 150 crore to increase the production capacity in India to 100 megawatts. The company has a 38-megawatt solar module manufacturing facility in Bangalore. According to sources close to the development, the expansion project would be completed in 2006. According to the BP official, "The company is looking for opportunities in the sector and the expansion will be depend on the market outcome". However, he refused to comment on the expansion plan.

Industry sources noted that the expansion work would cost between Rs 100-150 crore. The company's manufacturing facilities for Solar Photovoltaic and Solar Thermal products at Bangalore are the largest of their kind in the country. At Bangalore, the company manufactures a range of solar products that cater to individual customers as well as large institutions. The expansion would be financed through internal accruals, sources said. Established in 1989, Tata BP Solar had clocked a sales turnover of Rs 476 crore last year, with exports to the US and European countries touching Rs 380 crore.

The company is looking at revenues of Rs 1,500 crore by 2009. The company has a presence in neighbouring countries such as Nepal, Bhutan, Bangladesh, Afghanistan and Sri Lanka. BP Solar has plans to double its solar energy capacity in the US, Spain and Australia also. Investment into solar energy over the next three years is planned to boost BP's top position as the manufacturer and supplier of photovoltaic systems. BP recently signed a strategic joint venture to access China's expanding solar market and provide local manufacturing capacity and is exploring similar opportunities elsewhere in the region.

The London-based oil giant BP (parent company), had announced the launch of a new unit called BP Alternative Energy to manage a fleet of projects. The new unit had the potential to jack up the sales to around $6 billion a year within a decade.