Microtek International is investing Rs 400 crore in a new Jaipur manufacturing facility, set for completion by November 2026. The move aims to scale the production of battery energy storage and solar hardware, supporting the company's objective to reach Rs 10,000 crore in revenue within two years. This expansion aligns with increasing demand driven by residential rooftop solar initiatives.
Microtek International has announced a significant capital expansion, committing Rs 400 crore to build a new manufacturing facility in Jaipur. The project, which focuses on solar hardware production, is scheduled to commence commercial operations in November 2026. This move represents a strategic effort to strengthen the company’s domestic manufacturing capabilities, reducing reliance on imported components for its solar and power backup solutions.
Scaling Solar and Storage Capabilities
The company is pivoting its business strategy toward the emerging residential and commercial solar storage market. Central to this expansion is the development of new Battery Energy Storage Systems (BESS), designed to integrate directly with the company’s existing line of inverters and uninterruptible power supply (UPS) units. By combining energy generation through solar panels with lithium-based storage, Microtek intends to offer households a comprehensive power management solution that decreases dependence on traditional grid electricity.
This growth strategy is timed to capitalize on the increasing adoption of rooftop solar systems across India, supported by government schemes such as the PM Surya Ghar: Muft Bijli Yojana. These policy tailwinds have created a surge in demand for affordable, localized energy hardware, prompting established power electronics companies to expand capacity rapidly.
Revenue Goals and Competitive Context
Management has set an ambitious target to double annual revenue to Rs 5,000 crore by fiscal year 2027, with a long-term goal of reaching Rs 10,000 crore in total revenue within the next two years. Currently, the company operates a distribution network of over 100,000 dealers, which it intends to leverage for its broader product portfolio. However, hitting these targets depends heavily on the timely execution of the Jaipur plant and the ability to maintain market share in a highly competitive sector.
The power electronics and storage industry is currently seeing intense competition. As the market shifts toward higher-value products like BESS, companies are facing pressure to maintain profit margins while investing heavily in capital expenditure. The risk for the business remains the execution of this large-scale project without significant cost overruns, alongside the need to compete with other major players already established in the residential solar and storage space. Investors and industry observers will be closely monitoring the project’s commissioning timeline and the company’s ability to scale distribution effectively over the next two years.