Moser Baer Photo Voltaic, has bagged contracts to supply solar modules to European solar system integrators in a deal valued at over $500 million.
Will supply solar thin film panels to two German firms
NEW DELHI: Moser Baer Photo Voltaic, a fully-owned arm of New Delhi-based Moser Baer India, has bagged contracts to supply solar modules to European solar system integrators in a deal valued at over $500 million. The deal is for supply of ‘amorphous silicon gen 8.5’ thin film panels up to 2012. The customers include two Germany-based firms — Ralos Vertriebs, a system integrator, and Colexon Energy, a commercial photovoltaic plants operator.
Ravi Khanna, CEO, Moser Baer Photo Voltaic, said the deal is for three years. “It will start contributing to our revenues from next year onwards,” he said. From the first year, it will fetch the company $130-140 million. The subsequent years are expected to bring $180 million and $190 million. “Due to reasons related to competitiveness, I cannot comment on the pricing of the deal. However it is a binding deal and customers cannot negotiate on prices,” Khanna said.
The terms of the agreement include fixed price take or pay obligations, fully secured by bank guarantees from top international banks. A major chunk of revenues for the company’s solar power business comes from Germany, Southern Europe and the US.
Sameer Ranade, an analyst with Mumbai-based brokerage PINC, said, “The photovoltaic business is gaining acceptance from customers and thin film volume business will see increase in volumes in the next two years.”
By this year’s end, Moser Baer’s Noida plant will have 180 megawatt (mw) capacity, which will be scaled up to 300 mw by 2009. Moser Baer India plans to list the subsidiary in three years. “Beyond that, we will add about 500 mw of thin film capacity at our Chennai plant,” Khanna said.
Moser Baer Photo Voltaic is targeting 1 gigawatt of capacity by 2010. The company is targeting revenues of $150-200 million in FY09. It expects revenues of $500 million, including sales from the new deal, in the fiscal after that. Recently, Moser Baer Photo Voltaic raised Rs 415 crore by diluting 6.5% stake to a consortium of investors including Nomura, CDC Group, Credit Suisse, Morgan Stanley and IDFC.
vivek_s@dnaindia.net 
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