Swelect Energy Systems Ltd.

About the Company:

Swelect Energy Systems Ltd (Headquartered in Chennai) is in the business of providing sustainable energy solutions.Company is one of the fastest growing renewable energy company in India.

SWELECT, with a strong back drop of 30 years of Power electronics and Power Systems experience, is well positioned in the Renewable Energy space with over 60 MW of Solar Photovoltaic EPC experience.

Major Line of business:
• I – Manufacturing : Solar PV Modules, Solar Inverters and Mounting Structures
• II – EPC : Solar Power Generation & Systems Integration
• III – Iron & Steel Foundry Products

Highlights of the Company:

Solar PV Modules Manufacturing:

SWELECT had acquired and successfully amalgamated HHV Solar Technologies Ltd into its fold. In this
process, SWELECT has achieved higher cost efficiencies and thereby increasing the value proposition to its end customers in terms of better warranty and total cost of ownership.

SWELECT’s latest addition of roll forming machines in its Salem Plant, has enhanced its ability to offer state of the art Module Mounting Systems (MMS) with an output of 10 MW per month. This expansion and capacity addition has given SWELECT a unique advantage of near total backward integration in the manufacturing of BoS (Balance of System). This gives SWELECT an edge on the price competitiveness, timely delivery and most importantly highest quality complying to international standards.

With the amalgamation of HHV Solar into SWELECT and the expansion of the Salem Plant gives SWELECT distinct status as one of the very few companies in India to have total backward integration in the manufacturing process. This has given SWELECT greater market visibility as an OEM.

HHV ST Solar Modules have a strong brand recall for providing world-class SPV modules following highest manufacturing quality standards in the international market. HHV ST modules are already being exported to several countries across the globe.

HHV Solar Technologies had recently supplied its high-efficiency SPV modules for India’s 1st Solar Ferry.

Solar Power Generation & System Integration (Projects completed by the Company):

Recently company had successfully designed, manufactured, installed and commissioned India’s
Largest Floating Solar power plant for NTPC. This plant is located in Kayankulam, Kerala on the back waters.

SWELECT has recently designed, manufactured, installed and commissioned a 3.5 MW Solar Power plant for a major
and leading Dairy products company in Tamil Nadu.

MW SPV roof top installation was designed, manufactured, installed and commissioned on one of Chennai’s largest commercial rooftop for a major IT Park.
MW Single SPV rooftop power plant is going to be designed, manufactured, installed and commissioned for Integral Coach Factory in Chennai.
150 Kw SPV Car Port was recently designed, manufactured, installed and commissioned for Chennai Metro Rail.
10 MW SPV Power Plant in Kunigal, Karnataka is under design and is expected to start construction very soon.

Iron & Steel Foundry Products:

AMEX Irons Pvt. Ltd. has merged into AMEX Alloys Pvt, Company has the following capabilities to supply High
Quality castings to Oil & Gas, Transportation, Pharmaceuticals, Infrastructure, Flow Control etc.:

Design, Manufacturing, Machining & Export of a wide range of Steel Castings (using sand)
Design, Manufacturing, Machining & Export of a wide range of Iron Castings (using sand)
Design, Manufacturing, Machining & Export of a wide range of Investment Castings – using lost Wax process and
advanced Machinery

Thus making AMEX Brand as India’s first Foundry Group offering all the above under one roof and a One-Stop-Solution Foundry.

Also Watch (Detailed Analysis Inside this Video):

Opportunities for Solar Industry in India.

Indian Solar industry has seen more than 100% growth compared to the previous year. With Grid parity achieved and increased adoption of Solar Power, Indian Solar space is poised for quantum leap in capacity addition. Innovative deployment of Solar, combined with huge push from the government in adoption of Solar, has catalysed the industry into one of the fastest growing industry segment in India.

SWELECT being a technology agnostic company, is having multiple revenue streams opening up in the Solar Photovoltaic space in terms of Product sale, Projects and Power Sale.

Indian Solar market is also consolidating and recently many large-scale Solar Projects (more than 100 MW range) came with an unpredictable Power cost offers at Rs.2.44 / KWh. In addition, entry of cheap Chinese Solar modules also pose a threat to the Indian Solar Modules manufacturers. Grid availability and power evacuation infrastructure issues are also creating hurdles for faster adoption of solar power. Mainly the dropping Solar tariff is a threat when we aim for large-scale Power Plants.

Future for Solar Industry in India.

With the Central and State Governments promoting Renewable Energy and increased awareness for sustainable energy, the future outlook for the renewable industry is looking very positive.

SWELECT has taken new initiatives to achieve higher cost efficiencies by furthering its backward integration. The recent addition of machinery for Module Mounting Racks adds synergy to the existing Solar Module Manufacturing activity. This has opened up new product offering which will enhance the company product portfolio and also strengthens its core manufacturing prowess.

SWELECT, with its strong focus on quality, long-term business visibility and excellent brand recall in the market, is well positioned to become a pioneer in the renewable energy market.

Positives for the Company:

Experienced Management Team.
Well positioned in the Renewable Energy space with over 60 MW of Solar Photovoltaic EPC experience.
Indian Solar industry has seen more than 100% growth compared to the previous year.
With Grid parity achieved and increased adoption of Solar Power, Indian Solar space is poised for quantum leap in capacity addition.
Debt free company.
Cash Rich Company. (cash reserve of around Rs.300 crores)
Consistent Dividend Payer.
CMP is around Rs.537 and Market cap is around Rs.540 Crores ($83 million)
Stock could give at least 50% return in the long-term.

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