Grew Solar CEO Discusses 20% Increase in Logistics Costs Amid West Asia Crisis
West Asia crisis has increased logistics cost by 20%: Grew Solar CEO
Business StandardImage: Business Standard
The ongoing crisis in West Asia has led to a 20% increase in logistics costs for Grew Solar, a ₹3,400-crore solar manufacturing company. CEO Vinay Thadani highlighted the company's expansion plans, including a new 3 GW solar cell facility in Madhya Pradesh and potential exports to Europe, as they adapt to rising costs and delivery delays.
- 01Logistics costs have risen by 20% due to the West Asia crisis.
- 02Grew Solar is expanding its module and cell capacity, investing ₹3,700 crore in new facilities.
- 03The company plans to explore export opportunities in Europe and MENA.
- 04Grew Solar is entering the battery energy storage system (BESS) and green data center markets.
- 05Despite rising commodity prices, Grew Solar maintains stable margins.
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Grew Solar, a leading solar manufacturing company in India, is facing a 20% increase in logistics costs due to the ongoing crisis in West Asia. CEO Vinay Thadani stated that while demand remains strong in the domestic market, delivery timelines have extended from 20 days to 24-25 days because of congestion and vessel shortages. The company is currently operating at 6.5 GW of module capacity and is set to add 3 GW of solar cell capacity at its facility in Narmadapuram, Madhya Pradesh, with an investment of ₹1,400 crore. Plans for an additional 5 GW expansion are underway, with a projected cost of ₹3,700 crore. Grew Solar is also exploring export opportunities, particularly in Europe and the Middle East, as these regions seek alternatives to Chinese solar products. Furthermore, the company is considering new ventures in battery energy storage systems and green data centers, aiming to meet 85% of energy needs through solar power. Despite rising global module prices, Thadani reassured that margins remain stable as costs are typically passed on within 15-30 days.
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The increase in logistics costs may lead to higher prices for solar products, affecting both consumers and businesses relying on solar energy solutions.
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