Oswal Pumps, a manufacturer of solar pumping systems, modules, and electric motors, said it will establish a 1.2 GW solar cell manufacturing facility based on TOPCon technology with an estimated investment of ₹4.56 billion (~$47.6 million).

The company’s wholly owned subsidiary Oswal Solar Energy will use the proposed facility’s entire output for its solar module manufacturing lines.

The facility is expected to meet approximately 75% of the subsidiary’s solar cell requirements. Oswal Solar Energy will continue to procure the remaining cells externally in the near term.

Oswal Pumps proposes to finance approximately ₹2.96 billion (~$31 million) of the project cost through debt and ₹1.59 billion (~$16.7 million) from unutilized initial public offering (IPO) proceeds totaling ₹1.63 billion (~$17.02 million).

The IPO proceeds were originally earmarked for an aluminum frame manufacturing facility, the remaining 300 MW of an ethylene vinyl acetate (EVA) encapsulant manufacturing facility, and the remaining 500 MW of a solar module manufacturing facility.

The company plans to redirect the funds to the solar cell project by fiscal year 2028.

Oswal Pumps reached the decision after evaluating long-term sourcing arrangements with domestic solar cell manufacturers, including multi-year offtake commitments. It said the proposed prices and upfront security deposits did not align with its assessment of long-term value and working capital requirements.

The company concluded that captive solar cell manufacturing would be more economically viable.

Oswal Pumps expects its investment to reduce reliance on third-party and imported cells, improve supply security, and limit exposure to spot-market price fluctuations.

The facility is also expected to supply domestically manufactured cells compliant with the Approved List of Models and Manufacturers List II requirements for modules used in government programs, including PM-KUSUM and PM Surya Ghar.

Oswal Pumps operates approximately 570 MW of solar module manufacturing capacity and is establishing an additional 1 GW.

The company said its existing facilities meet current requirements, but expanding module production would increase its reliance on externally procured solar cells compliant with domestic content requirements.

Oswal Pumps plans to retain 1.2 GW of EVA encapsulant manufacturing capacity, which it expects to meet most of its module production requirements, with a small quantity sourced externally.

In September, Oswal Pumps won Telangana Renewable Energy Development Corporation’s auction for 46.705 MW of grid-connected rooftop solar capacity at a contract value of ₹2.98 billion (~$31.15 million).

India added 50.6 GW of solar module and 9.7 GW of solar cell manufacturing capacity in the first half of 2026, according to Mercom India’s recently released research report, State of Solar PV Manufacturing in India 1H 2026.