Solar Semiconductor, a Hyderabad-based photovoltaic (PV) modules manufacturer, plans to raise $30 million by the end of this year. The company will preferably go for private equity and venture capital to raise the proposed amount, informed a top company executive. The money will be deployed mostly in acquiring firms in the US, Europe and India and will be partially utilised as working capital.
Speaking to VCCircle on the sidelines of CEOs meet at ‘3rd Renewable Energy India 2009 Expo’ in New Delhi, Hari R Surapaneni, CEO & President, Solar Semiconductor, said that the company plans to raise money to acquire prospective firms which can add value to the company and help the company to meet the target of a photovoltaic module-making capacity of 400 MW in one year time. The company currently has a capacity of producing 200 MW photovoltaic modules, while it has produced around 120 MW this year. The company will also start manufacturing PV module in its US plant this year.
“So far the money is coming from the promoters. We plan to raise money from investors, preferably PE and VC funding before the end of this year,” stated Surapaneni.
After its inception in 2006, the company has been partnering with companies in the overseas market for selling its products in these regions. In July 2008, Solar Semiconductor has announced a strategic partnership with AS Solar GmbH, a premium re-seller of Solar PV products in Europe. This multi-year partnership was valued at approximately $695 million.
Again in October 2008, as part of reverse merger, Solar Semiconductor entered into a deal worth $375 million with US based Trans-India Acquisition Corporation for around 80% stake in the company. However, in February 2009, both the companies called off the deal due to Trans-India’s failure to get permission from its investors on time.
Solar Semiconductor designs, manufactures and sells solar photovoltaic modules for industrial, commercial and public-utility customers worldwide. US based Sun Power is one of the major clients of Solar Semiconductor. It has production facilities in Kompally and Fab City in Hyderabad. For the Fab City project, the company has invested over Rs200 crore in phase I and proposed to spend more than Rs400 crore in the current fiscal that will envisage a total investment of Rs 1,100 crore over 10 years time.
Last year, the company has posted $100 million as revenue and is expecting a multiple of that by the end of this year.