India will have huge growth potential of additional 5-6 GW in the next 12 months, says Marc Jarrault, Managing Director, LAPP India Pvt Ltd, in an interview.
Says Marc Jarrault, Managing Director, LAPP India Pvt Ltd, in conversation with R Srinivasan.
Kindly comment on the current scenario since Lapp India expects a significant jump in business (kindly mention the figure or percentage) in the solar cables sector.
According to a Mercom report, the share of renewable power in India’s energy mix is increasing continually with cumulative installations now exceeding 50 GW. In India, the solar sector accounts for almost 18 per cent of all renewable energy generation. Catering to the growing demand, LAPP India, is constantly innovating to develop products and solutions to meet the increasing demand and garner greater market share in the Indian solar cable sector. With solar cable industry expected to touch 1500 VDC system by next fiscal, LAPP India, aims to cater to more grid-connected projects that require PV cables.
Comment on business potential in view of the government thrust and subsidies for solar.
Once GST is rolled out, it is expected to give a boost to the government’s ‘Make in India’ initiative by improving competitiveness of Indian manufacturers of solar cells, panels and modules. GST will also eliminate the cascading effect of the existing tax structure, thereby, introducing an input tax credit. Analysing this potential for business, LAPP India, will now be able to think of an addition of over 4 GW easily per year which is up by over four times what we were two years back. This is slated to increase further with annual additions expected to cross 6 GW. Our business potential has definitely increased because of this increased activity and we stand to gain with support from our valued customers. Thus, we are aiming to garner a wider market share with support from our valued customers.
Kindly elaborate on factors behind the company’s expectation of business of €7-8 million this GW year from solar plant installations in India from hardly €1 mn last year?
India is rapidly growing. Energy will determine India’s development ambitions. Owing to the country’s substantial growth, energy requirements too are increasing at a rapid rate. India’s 6-lakh crore solar mission and the new wind energy plan is expected to make India a renewable powerhouse globally with the largest renewable energy base. The government is also taking initiatives to reduce India’s dependency on coal-fuelled electricity. As renewable sources have an advantage of being cost-competitive as compared to fossil fuel-based generation, India’s target is to reach 175 GW of renewable energy capacity by 2022, which includes 100 GW solar power, 60 GW of wind power, 10 GW of biomass-fired power and 5 GW of small hydro power. With the solar target, recently being revised to 120 GW, India will have huge growth potential of additional 5-6 GW in the next 12 months. Keeping this in mind, we at LAPP India, aim to tap this potential and contribute to India’s growth story.
Comment on the exports scenario from India.
India’s current economic environment is vibrant and conducive for higher growth for Lapp India. The business policies and skilled manpower available in here is giving us at LAPP India, an opportunity to evaluate exporting solar cables to Maldives and other SAARC countries, where we are seeing immense potential for solar sector. As a part of Gamesa last year, LAPP India, catered to a 20 MW project in Sri Lanka by supplying solar cables for over 50 MW projects.
Comment on manufacture of solar cables at its Bangalore facility and details in terms of JVs etc.
Lapp India started its first manufacturing unit outside Germany, at Jigani, Bangalore. Having made an investment of 2.1 million euro, the Jigani plant is the second largest manufacturing unit of the Lapp group. The plant has a capacity to manufacture about 120,000 km of multi-core cables and 78,000 km of single core wires per annum. All our products for photovoltaic segments are sourced from our subsidiary companies as these are not presently manufactured in India.
How is the company tweaking its manufacturing processes in Bangalore so that solar cables could be protected from UV radiation and can last longer? Since the company is investing around €1 mn for this tweaking, what is the total annual spend on R&D overall for solar cables?
The current government’s focus on renewable energy has increased the demand for special cables required in solar sector. The growing prominence of renewable energy in India provides LAPP India, an opportunity to constantly innovate. The group is planning to also invest in R&D to contribute to innovation across sectors and develop solutions like OLFLEX® SOLAR XLWP water proof cables, to meet the demand of an ever-evolving ecosystem. With its headquarters in Stuttgart, Germany, the group is a leading supplier of integrated solutions and branded products in the field of cable and connection technology. To make sure that it stays that way in the future, we always keep a close eye on the markets. Furthermore, over the years we have demonstrated a keen perception for individual customer needs. We are constantly further developing our products and system solutions and setting standards in safety, quality and functionality.