Luminous Power Technologies expects the share of solar business to grow to 40 per cent of its total sales in the next three years. Solar solutions currently account for nearly 20 per cent of its total business at present.
The company, which is the Indian subsidiary of French multinational Schneider Electric, has a wide range of products in the power backup, home electrical, and residential solar space that covers inverters, batteries, solar solutions to home electrical offerings such as fans and LED lighting.
According to Vipul Sabharwal, Managing Director, Luminous Power Technologies, the residential solar business has been growing at around 15-20 per cent on a year-on-year basis over the last two-to-three years.
“In the last two years due to Covid and work from home the demand for uninterrupted power supply has become very important. So we have seen a good demand for our products. Nearly 20 per cent of our business comes from residential rooftop products and that has been growing at double digit. We expect the growth momentum to continue moving forward,” Sabharwal told BusinessLine.
The company will focus on enhancing product portfolio and invest on strengthening the supply chain to grow its solar business. It recently launched an integrated inverter with lithium-ion batteries, which are likely to have three times battery life as compared to conventional battery based inverters.
The estimated market size for inverter batteries is close to ₹10,000 crore and solar inverter batteries account for another ₹5,000-6,000 crore.
“Solar is an important segment for us. On the product front we will look at more powerful inverters, connected products, more new technologies and efficient panels,” he said.
The company is investing close to ₹350 crore to ramp up its manufacturing capacity over the next three years and grow the solar business. It currently has seven manufacturing units across the country and one more plant has been commissioned at Haridwar in Uttarakhand. This plant is likely to be operational in the next 15-18 months.
The company is hopeful of scaling up its capacity by nearly 40 per cent in the next few years.
Luminous Power has been growing at a CAGR of 12-15 per cent over the last four-to-five years and hopes to be able to sustain the growth moving forward.