Sunny Side Up

In 2012, Ujaas Energy decided to expand its transformer-making business to solar parks. Therein began its success story. Ujaas’s turnover was Rs 35 crore in FY2012, and a year later, it was Rs 244 crore. This, after a complete shift in business focus. With a Rs 533-crore turnover as of March 2014, the company has actualised its dreams.

Operating on a contractual basis, Ujaas calls itself a one-stop shop for solar solutions  —  a USP that has helped it win over investors. Says Vikalp Mundra, joint managing director, “Projects are treated as our own baby, which we not only help build but also take care of.”
 
Ujaas’s solar plants are based on the sale of renewable energy certificates and the sale of solar power. The company undertakes land acquisition, construction, operations and maintenance for close to 25 years after commissioning. “The business model is a unique innovation which helps us achieve economies of scale,” says Mundra.

Ujaas has gone from 15 investors in 2012 to over 40 investors, all of whom have solar power requirements in the range of 0.5 MW and 20 MW. “Most of our investors are non-energy companies and, therefore, our complete solutions along with operations and maintenance after commissioning gives them the confidence to invest,” says Mundra. Additionally, the investment offers tax incentives. Under the law, income from solar plants is tax-free for the first 10 years, incentivising investors. “The fact that income is directly linked to power, where tariffs are inflation-linked assures returns for customers,” he adds.

The company is now expanding into other verticals like rooftop solar projects. In FY2014, it had under 1 MW in rooftop solar power capacity, but by the end of FY2015, it will have over 10 MW. The sun is shining!

(This story was published in BW | Businessworld Issue Dated 11-08-2014)