Shakti Pumps Is Steadily Boosting Its Manufacturing Arm. Here’s How

Shakti Pumps is steadily expanding its manufacturing footprint beyond solar pumps, with the company now putting greater emphasis on backward integration across the solar value chain. The latest move came on September 14, when the company infused ₹11 crore into its wholly owned subsidiary Shakti Energy Solutions Ltd (SESL). The subsidiary is setting up a greenfield 2.2 GW solar DCR cell and module manufacturing plant at Pithampur, Madhya Pradesh. ## Expansion Spree The investment is part of a much larger manufacturing expansion planned by the company. In its latest investor presentation, Shakti Pumps outlined a phased capex programme of around ₹1,700 crore, aimed at doubling capacities across its core businesses while adding new solar and electric-vehicle manufacturing capabilities. At the centre of the plan is solar manufacturing. The company is developing a 0.5 GW DCR module facility as a near-term step, followed by the 2.2 GW integrated DCR cell and module plant at Pithampur. The 0.5 GW facility is expected to be commissioned around September 2026, while the larger 2.2 GW facility is targeted for September 2027. The strategy represents a shift from being primarily a solar-pump manufacturer to building a more vertically integrated solar business. Shakti already manufactures several components used in its solar-pump systems, including pumps, motors, VFDs, controllers, structures and inverters. ## Planned Cell and Module Production The company has said the planned cell and module capacity will help secure solar component supplies, improve cost optimisation and support long-term profitability. It also expects the manufacturing capacity to serve its own solar-pump and rooftop businesses, while supplying domestic and export customers. This backward integration could become particularly relevant as Shakti expands its rooftop solar business. During its Q1 FY27 earnings call, management said the company wants to offer its own panels alongside its rooftop inverters and other components. It also said export customers had been seeking panels from the company for several years. The company currently buys around 50-60 MW of modules every month, according to management. The initial 0.5 GW module facility is expected to operate at 40-50% utilisation before moving towards 60-70% and eventually around 85%. ## Manufacturing Push The manufacturing push also ties into Shakti's broader growth ambitions. Management has set a target of reaching ₹5,000 crore in revenue by FY29, with growth expected to come from solar pumps, rooftop solar, VFDs, modules and cells, structures, exports and other businesses. The company expects the full integration of its solar manufacturing chain to eventually support margins as well. Management has indicated that once the planned capacities are fully commissioned, the expanded manufacturing structure could contribute around three percentage points to EBITDA margin. The latest ₹11 crore infusion, therefore, is less about the size of the immediate investment and more about financing the next stage of Shakti Pumps' manufacturing strategy. SESL, which reported ₹239.11 crore revenue in FY26, is the vehicle through which the company is building its solar cell and module manufacturing business. With the 0.5 GW module facility expected first and the 2.2 GW integrated plant planned for 2027, Shakti is gradually moving towards a model where more of the components required for its solar businesses are manufactured in-house.