Lanco Infra bets big on solar biz, eyes $300m annual rev - CNBC-TV18 -

After acquiring Australian coal mining company Griffin, Lanco Infratech is now betting big on the solar business. The company is looking at USD 300 million of annual revenue from its solar SEZ and hopes to list its solar biz in two years, reports CNBC-TV18’s Mehak Kasbekar and Malvika Jain.

It is all stones and boulders now but this is where India's first solar SEZ is set to take shape. Lanco Infratech plans to invest Rs 3000 crore to set up a solar photovoltaic manufacturing unit over 250 acres at Rajnandgaon, Raipur in the state of Chattisgarh. The SEZ will have an annual manufacturing capacity of 250 Mw photovoltaic cells and aims to meet 15% of India's demand for solar energy equipment. But the big bucks will flow in from abroad, as the company plans to export 50% of the equipment at competitive prices to Europe and USA.

L Madhusudhan Rao, Chairman, Lanco Infratech said, "Solar for us is an independent company. That is how we want to position this company. We want to bring in this independence from 2-3 yrs from today. at some point of time we may separate this and list this."

The project, being funded with a 75:25 debt-equity ratio, involves an initial investment of 1,370 crore rupees in the first phase that is expected to be completed in 15 months. The manufacturing unit shall be fully commissioned by 2014.

Rao said, "Gas today has become little bit tricky. There is going to be 50-60 mmscmd of gas available in the next 3-4 yrs and we don't see much scope beyond that in short to medium term.”

The company is restructuring its business to create a separate power vertical. Lanco has a long-term plan to increase its power generation capacity from nearly 2,100 MW to 15,000 mw by 2015. The company may also look at listing the arm soon.

Source: Lanco Infra bets big on solar biz, eyes $300m annual rev - CNBC-TV18 -

Lanco’s foray into Solar Business

Lanco Solar is a global developer with presence in United Kingdom, Germany, France, Italy, Spain, USA & Canada. 

Lanco Solar is a global Engineering, Procurement and Construction Company to deliver EPC solutions 

Lanco Solar is establishing integrated manufacturing facility to produce 300 MW Photovoltaic modules per annum 

Lanco Solar Holdings, Singapore, a subsidiary of Lanco Infratech Ltd. has unveiled its solar plans. It is implementing a fully integrated business strategy as a Developer of Solar Farms, EPC contractor and also integrated manufacturer of solar PV modules. Lanco Solar is present in both solar PV and Solar Thermal technologies.

Under various policies of both state and central governments, Lanco Solar has already signed power purchase agreements to the extent of 140 MW and aims to develop 200-300 MW of solar power over the next 2 years. Lanco Solar also offers turnkey engineering, procurement and construction (EPC) services to other solar power developers and are looking to build 300-500 MW of solar thermal and solar PV plants over the next couple of years. Lanco Solar has also secured contracts for establishing solar power generation projects to be built on Parliament house and Science City in Punjab.

Lanco Solar has established a global presence across United Kingdom, Germany, France, Italy, Spain, USA & Canada. Lanco Solar is developing Solar Power Plants & providing turnkey EPC services in these countries. The first few projects in Europe are expected to be commissioned by April 2011.

As part of its integrated business strategy, Lanco is setting up India's first integrated Solar PV manufacturing Special Economic Zone (SEZ) project in Rajnandgaon district of Chhatisgarh. In an event which was marked with presence of distinguished gathering. Hon. Chief Minister of Chhattisgarh, Dr. Raman Singh laid the foundation stone for the SEZ project while Dr Farooq Abdullah, Hon. Union Minister for New & Renewable Energy was the Guest of Honour for the event. The SEZ project is being developed in phases and will have integrated facilities for manufacture of Polysilicon , Ingots, wafers, PV Cells and PV modules with capacities of 250 MW/year equivalent. First phase of the project with an investment of Rs.1370 crores, consisting of Polysilicon, Ingots & Wafers, will be fully operational by year 2012. The state-of-the-art project is the first such integrated solar photovoltaic facility coming up in India, putting the country and the State of Chhattisgarh in the global map of polysilicon production bases.

The high-technology processes involved in the project are similar to that of semiconductor industry The facility is being designed to produce polysilicon of very high purity (micro-electronic grade) and will be set up using technology from Germany and USA.

The SEZ project would provide major boost to the local employment creation and small and medium scale ancillary industries in and around the area. It will create direct and indirect employment for 8,000 people. The project will enhance local entrepreneurship in many fields such as aluminum frame manufacturing, chemical process industries, electrical and electronic industries and construction industry. Small and Medium enterprises such as cutting tools, graphite machining, glass manufacturing, quartz crucible production,panel and switchgear repairing, PLC and robotics-cum-automation servicing, pallets and plastic packaging industry and ash bricks for servicing and maintenance would additionally provide job opportunities for a large number of people in and around the area.

The project would provide the critical backward integration for the solar projects undertaken by the company. Lancohas signed power purchase agreements with NTPC Vidyut Vyapar Nigam Limited (NVVN) for development of a 5MW solar PV project and a 100MW solar Thermal project in the state of Rajasthan under the first phase of the National Solar Mission. In addition, it has signed up with Gujarat Urja Vikas Nigam Ltd (GUVNL) for development of a 35 MW Solar PV project in the state of Gujarat. The company has already commissioned a 5 MW solar PV project in Gujarat using its in-house EPC capabilities, while another 5 MW is under development.

Speaking on the occasion, Hon. Union Minister for New & Renewable Energy, Dr Farooq Abdullah, said, "One of the main objectives of National solar mission is to take a global leadership role in solar manufacturing across the value chain, including setting up of manufacturing capacities for poly silicon. I am happy that this integrated project is the first step in this direction."

Speaking on the occasion, Hon. Chief Minister of Chhattisgarh, Dr. Raman Singh, said, "In view of the nations determined foray into renewable energy, this project would play a critical role as integrated manufacturer of equipment for solar industry and also help the state in being at the forefront of clean energy revolution promoting non-polluting industries. The SEZ would help the state in creating thousands of employment opportunities in the region and boost small and medium scale entrepreneurship in the state."

Present at the occasion, Mr. L Madhusudhan Rao, Chairman, LITL, said, "Lanco Infratech has been developing a number of solar projects and has been at the forefront in its commitment to develop and promote renewable energy in India. India's 1st Solar PV manufacturing SEZ would provide components not only for Lanco projects but for the whole industry. It would also help the country in developing critical technologies in the solar energy sector and prove as a stepping stone for future of solar power in India."

Source: Lanco’s foray into Solar Business