Shakti Pump Secures Land To Setup Solar Cell, Module Manufacturing Facility

Madhya Pradesh-based solar pump company, Shakti Pumps, has recently secured land for setting up a solar cell and PV module manufacturing facility using wafers as input material.

The company announced this development in a regulatory filing, stating, “Madhya Pradesh Industrial Development Corporation Limited (MPIDC) has sanctioned 113 acres of land to our wholly owned subsidiary, Shakti Energy Solutions Limited (formerly known as Shakti Energy Solutions Private Limited).” It also disclosed the project location: “This land is located at Smart Industrial Township, Sector – 7, Pithampur, Dist. Dhar (M.P.).”

Shakti Pumps Expansion Into Solar Manufacturing 

Earlier this year, Shakti Pumps had announced tentative plans to expand into solar manufacturing  of DCR (Domestic Content Requirement) solar cell-based modules to meet the domestic cell requirement in tenders.  The firm had cited shortage in the market and higher prices as a key drag on its own growth and margins. To achieve this, the company partnered with ReNew Photovoltaic Private Limited for procuring additional quantities.

Shakti Pumps‘ new manufacturing facility is expected to help the company with a steady supply of DCR compliant solar cells in solar irrigation schemes and align with the Ministry of New and Renewable Energy (MNRE) regulations for specific projects like PM-KUSUM and PM Surya Ghar. Additionally, the government’s requirement to use only DCR-compliant solar modules in such schemes makes this expansion a strategic move to enhance compliance and meet growing demand.

However, with actual production likely to start only in 2026, one has to wonder about the move, as the firm might find itself saddled with a diversification that does not add adequate value. The firms core business of solar pumps has seen quite a few new entrants, and older players ramp up to grab expanding market opportunities, and for the market leader Shakti Pumps to enter solar cell manufacturing, which is completely different business, is somewhat of a risk. In time, we should know how this plays out.