Servokon expands into wind energy sector and plans future investments to fuel growth, ET EnergyWorld

Servokon, a power solutions company, is venturing into the wind energy sector as part of its significant expansion plans. The company aims to tap into India’s massive untapped potential for wind energy, alongside its existing focus on solar solutions. In an exclusive interview with ETEnergyworld, Haji Kamruddin, the founder and managing director of Servokon, shed light on the company’s journey and shared insights into their expansion plans and funding requirements.

“Alongside solar energy, India has massive untapped potential for wind energy. For now we will cater to the solar and wind energy requirements of small industries in and around Ghaziabad and going forward, we will plan bigger projects as we start manufacturing our own panels,” said Kamruddin.

At the recent Uttar Pradesh Global Investors Summit 2023, Servokon achieved significant milestones by signing two Memorandums of Understanding (MoUs) worth a combined sum of Rs 450 crores. Each MoU, valued at Rs 225 crores, focuses on establishing a manufacturing plant dedicated to solar panels, modules, and large transformers.

However, one of the key challenges Servokon faces in executing these ambitious plans is the availability of land. To support their expansion goals, the company requires an 8-acre land area.

Recognizing the potential for further growth, Servokon has identified key areas such as solar energy, EV charging, high-rated power transformers, and now, a venture into wind energy. These sectors present significant growth opportunities, with projected growth rates of 50 to 60%.

Currently, Servokon’s primary focus lies within the transformer industry, with plans to develop a 30MVA transformer capacity. However, their ultimate objective is to expand this capacity to 100 MVA within the next 1-1.5 years, necessitating the development of requisite machinery and systems.

To meet the capital expenditure requirements for their growth and expansion plans, Servokon is actively exploring various options.

“In future, to enable the diversification of our business portfolio and to attract investments, we will try to partner with private companies or apply for initial public offerings (IPOs),” said Haji Kamruddin.

By evaluating their investment requirements and forming alliances with private players, Servokon aims to ensure sufficient resources to support their expansion plans.

Additionally, Servokon is proactively encouraging its existing customer base to adopt solar systems, leveraging government support and subsidies. By promoting the adoption of solar energy, Servokon aims to fortify its market position and further contribute to the growth of renewable energy in the region.

Servokon’s strategic foray into the wind energy sector comes on the backdrop of plans for raising capital through partnerships with private investors or a potential IPO.

  • Published On Jun 21, 2023 at 05:17 PM IST

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