Shree Ganesh Jewellery House (SGJHL) makes its debut in solar power business with Alex Group of Companies in, the Gujarat Solar Park. The company just commenced production with a 25 MW plant, with an investment of Rs 4 billion.
Alex Group of Companies is aggressively looking at scaling up the solar energy business, targeting 500 MW in 3 years with a ballpark investment of Rs 50 billion. Funding will be done through private equity participation and internal accruals. The business is a cash generating model and would not require hand holding by Shree Ganesh.
The company is in advanced stages of discussions with many state governments including Bihar, Uttar Pradesh, Jharkhand and Odisha. Besides the current 25 MW plant in Gujarat, the company has signed a MoU for setting up an additional 25MW in Phase III of the Gujarat Solar Park and further 50 MW has been applied for which is under consideration by the Gujarat Government. The order pipeline in the next 2 years is expected to include a 50 MW in UP, 25 MW in Jharkhand, 25 (20+5) MW in Odisha, 25MW in Rajasthan and 75MW project in Bihar where the project has received clearance from the state industrial promotion board. In the sidelines of the Jawaharlal Nehru National Solar Mission targeting 22000 MW by 2022 the Alex Group of Companies also envisions tremendous opportunities in the solar energy sector.
Nilesh Parekh, Chairman, SGJHL and Group chairman, Alex Group of Companies commented, “This is our entry into a new generation of renewable energy. The company will be professionally run by experts and has already started competing aggressively for projects across states. We have been one of the few companies in India to have been awarded projects in both the major solar initiatives in India, namely, The Gujarat Solar Policy 2009 and the Jawaharlal Nehru National Solar Mission (JNNSM). The fact that JNNSM was globally oversubscribed by more than 15 times and we have been selected as one of the few developers under the prestigious policy speaks in itself of the confidence we have been able to build with our approach to developing solar energy. In real financial terms as well, Alex Group has been able to become self-financed in a record 30 months. We however don`t want to lose momentum and are also in talks with international investors for our ambitions in the solar energy business.“
Shree Ganesh has worked out a differentiated model for the Alex Group of Companies considering its non-EPC background of gold jewellery manufacturing. To ensure efficiency and develop par global expertise for its projects, Alex Group of Companies has collaborated with international and local domain experts including EPC contractors, advanced engineers, and even owners` engineer, lender engineer, international suppliers like First Solar GmbH, inverters from SMA and project consultants of international capacity to keep a quality check on the project rather than developing expertise in-house.