According to reports, cable manufacturer Lapp India expects a significant jump in business from the emerging solar-energy sector.
“Cables are a key component of solar panels and modules,” says Mr Srinivas P. Kamisetty, Managing Director. “With huge Government thrust and subsidies for solar energy, this sector has huge business potential for us.”
The company expects business of €7-8 million this year from solar power plant installations in India. Last year, it was hardly €1 million.
In India, solar-panel builders mostly export their products. But this is about to change. “The Government has given out licences for lot of megawatt of solar energy. But only [a] fraction of that has been deployed. But now with States such as Gujarat, Karnataka, Madhya Pradesh and Rajasthan moving forward to deploy solar power plants, there is lot of scope for us in the domestic market.”
Currently, Lapp India imports cables for solar installations in India from Korea. Certain components come from Switzerland. The company is exploring opportunities to manufacture solar cables at its Bangalore facility.
“Cables for solar need to be protected from ultra-violet radiation; they also need to last longer. We are tweaking our manufacturing processes in Bangalore to be able to do this,” says Mr Kamisetty. Lapp India will invest close to €1 million on this.
Lapp India, a subsidiary of the German Lapp Group, manufactures cables and connectors for application in steel plants, refineries, engineering, robotics and automotives. It is looking to invest Rs 200-250 crore in five years.
A part of this will go into its upcoming manufacturing facility in Bhopal. The 30-acre plant will start operations in April. The first phase will see manufacture of single-core wires for households, followed by multi-core industrial wires.
Lapp India clocked a turnover of Rs 300 crore last financial year.