Fujiyama Power Systems has secured technology rights to proceed with its 1.2-GW TOPCon solar cell facility in Ratlam, Madhya Pradesh. Expected to go live in the first half of FY28, the project aims to serve domestic solar demand. Investors are tracking the company's project execution and capital spending plans amid shifting global technology export controls.
Fujiyama Power Systems has confirmed it is moving ahead with plans to build a 1.2-GW solar cell manufacturing facility in Ratlam, Madhya Pradesh. The company has finalized a technology transfer agreement that allows it to access advanced TOPCon production methods. This move is significant because China, which currently holds a majority of global solar manufacturing capacity, recently tightened export controls on these advanced solar production technologies. By securing the rights ahead of these restrictions, the company intends to maintain its project timeline without disruptions.
The project is slated to begin commercial production in the first half of the 2028 fiscal year. The facility will focus on TOPCon (Tunnel Oxide Passivated Contact) cells, which are known for higher efficiency compared to older solar cell technologies. In addition to solar manufacturing, the company is diversifying into energy storage. It has deployed a 5-MW battery energy storage system at Dadri and is planning a 10-MW rollout at the upcoming Ratlam site. This reflects a broader industry shift where companies are looking to integrate solar generation with storage to provide more stable power supply.
While the company has set ambitious financial targets, projecting a compound annual growth rate of over 50% for revenue, EBITDA, and profit through fiscal year 2028, these figures rely heavily on successful project execution. Building large-scale solar manufacturing plants is capital-intensive, which often requires significant debt or equity funding. Investors may track the company's debt levels and cash flow to see if the project creates any financial strain during the construction phase.
Market demand is being supported by government initiatives like the PM Surya Ghar Muft Bijli Yojana, which mandates the use of domestically produced solar components. This domestic content requirement creates a protected market for Indian manufacturers, reducing immediate competition from cheaper imported solar cells. However, the renewable energy sector in India remains competitive and sensitive to fluctuations in raw material costs, such as silicon prices, and global supply chain dynamics. If global module prices fall significantly, domestic manufacturers may face pressure on their profit margins.
The key monitorable for shareholders will be the commissioning of the Ratlam facility. Any delays in setting up the machinery or obtaining the necessary regulatory clearances could push back the production timeline and affect the company’s revenue growth. Additionally, investors will watch for management updates on the utilization of the new capacity once it goes online to see if domestic demand matches the company's production goals.