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Large foreign companies have been making a beeline into the Indian solar market, with every new day bringing a new foreign company looking to set up a billion dollar solar business in India attracted by Indian’s massive 100 GW solar target by 2022. Recently Softbank, Foxconn and Rosneft have announced their intention to set up gigawatts of solar capacity in India. Trina Solar and JA Solar which are 2 of the world’s biggest solar panel makers are also firming up their plants to set up large scale manufacturing facilities in the country, due to the DCR provision as well as for “Make in India”. Canadian Solar has also done a JV for setting up manufacturing and also wants to set up large solar parks in India in association with its associate funds.
Solar in India
Now another large Chinese company Zhenfa Energy plans to set up 2 GW of solar power plants in India in a JV with Rolta Power. Note Rolta is more known for its government IT contracts and has recently set up a module manufacturing line. The company has tied up with Chinese Zhenfa Energy.
The Zhenfa Group claims to have developed over 3000 MW of solar power plants in China and recently acquired a solar encapsulants maker in USA. There is little information about the ownership and the antecedents of the group, as Zhenfa Energy was set up in 2012. The company looks well connected with access to massive amounts of capital which would allow it to set up 3000 MW of solar projects in such a short period of time.
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JV provides platform for successful operation in another country, since it combines the strength of firm working in own country and strength of JV firm Thus, it creates synergy. No country wants import items in bulk quantity as it disturbs balance of trade. Therefore, JV remains is only alternative for investment in other countries.