The solar industry in India has seen rapid growth, driven by government initiatives and a strong push toward renewable energy. India’s installed solar capacity has surpassed 50 GW, positioning the country as one of the largest solar markets globally. The National Solar Mission aims to achieve 500 GW of renewable energy capacity by 2030, with solar playing a central role. Falling solar panel costs, supportive policies, and increased investments in solar infrastructure fuel this growth.
Leading companies in India’s solar industry include Adani Solar, Tata Power Solar, Vikram Solar, and ReNew Power. These firms and international players like First Solar are contributing to expanding the country’s solar capacity. With ongoing technological advancements and further policy support, India’s solar industry has a promising future.
Share Price
The shares of Pennar Industries are currently trading at Rs. 194.4 up by 0.47% from its previous close of Rs. 193.49. The stock also touched an intraday high of Rs. 196.6 as of January 01, 2025.
Recent Update
Overview of the Joint Venture Agreement
On December 31, 2024, a Joint Venture (JV) Agreement was executed between Zetwerk Manufacturing Businesses Private Limited, Pennar Industries Limited, and other partners for the establishment of a new Joint Venture company. This JV aims to manufacture and sell solar modules while also developing and operating a manufacturing unit. Through this partnership, the companies aim to leverage their combined expertise and resources to meet the growing demand for solar power both domestically and internationally.
Structure and Shareholding in the JV
The ownership structure of the Joint Venture company has been divided as follows: Zetwerk Manufacturing Businesses Private Limited holds 50.1% of the shareholding, Pennar Industries Limited holds 45.0%, and the remaining 4.9% is held by other stakeholders. This distribution ensures a controlling interest for Zetwerk while maintaining a significant role for Pennar Industries. The total equity share capital of the Joint Venture company is Rs. 41.67 crore, with Pennar Industries contributing Rs. 18.75 crore as its investment.
Business Operations and Market Focus
The primary objective of the Joint Venture is to manufacture and sell high-quality solar modules, contributing to the growth of the renewable energy sector. The company will focus on developing and operating a state-of-the-art manufacturing unit that caters to both the domestic and international markets. The solar module production will address the increasing demand for sustainable energy solutions and support India’s goal of expanding its renewable energy capacity.
Governance, Terms, and Conditions
The governance structure of the Joint Venture company will include a board of four directors: two directors from Pennar Industries Limited and two from Zetwerk Manufacturing Businesses Private Limited. Key decisions, such as business plans and marketing strategies, will require joint contributions from all shareholders. The shareholders will also have the right to participate in any further issuance of shares in proportion to their existing shareholding. Notably, this agreement does not fall within related party transactions, and the promoters or their group companies have no significant interest in the Joint Venture beyond their respective shareholding.
This Joint Venture is expected to strengthen the position of both Pennar Industries and Zetwerk in the solar energy sector, creating substantial growth opportunities in an emerging global market.
About the Company
Pennar Industries Limited is a diversified, multi-location company that manufactures precision engineering products, Pre-Engineered Building Systems, and hydraulics and warehousing solutions. With a strong presence across various sectors, the company delivers high-quality, innovative products to meet the evolving needs of industries. Pennar Industries is known for its expertise in engineering solutions, providing robust and sustainable products for diverse applications. Its commitment to excellence and technology-driven approach have helped establish the company as a prominent player in the manufacturing and infrastructure sectors.
Written By: Dipangshu Kundu
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