As per Shakti pumps, they have a patent for grid connected pumps which is in pilot in Ajmer. Then they should be the only player bidding for this, right? Moment of truth.
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Well, having a patent doesn’t guarantee the order for Shakti Pumps, imv. If the patent capability is must requirement of the tender, then it increases the probability of Shakti Pumps being the only player to bid for it.
I went and read the scope of work and required specifications in the tender document. At a high level - no where I saw the requirement for automation to shift power to the grid after drawing water is completed. However, I would let someone with more technical knowledge to read the specifications required to confirm whether my inference is true.
I think main requirement is Remote Monitoring System for solar power plant. I felt it is complex but doable by organizations with decent pockets, right technical partners and resources.
I will not be surprised if many players bid for this tender.
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This is from the Q1 FY25 concall. So, they have competitors in the on-grid solar pump market. But Shakti has better technology & products than their competitors and have protected their product by patents.
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Ah I see. I somehow didn’t pay attention while reading this. This actually feels better for the Kusum C scheme overall as there won’t be any monopoly. Let’s see how superior technology of Shakti pumps make a difference here. But since pumps will never need to run more than a few hours per day, it should not be making a big difference.
In my opinion, governments typically oppose monopolies and favor competition. While better technology from Shakti is beneficial for everyone in the value chain and for the country, we must consider a key point in the context of the new tender that Amit shared. At the end of the day, a competitor of Shakti could potentially submit a lower bid and still meet all the tender requirements, even without the technological advantage that Shakti Pump offers (according to management).
Yes, this might mean that farmers need to manually turn off the pump and feed the grid to earn money when there’s no need to pump water for the field. Although this adds a layer of inconvenience, it’s manageable.
Ultimately, as long as a competitor can offer remote monitoring capabilities and fulfill all the tender requirements, they have a chance to win this tender, even without the advanced technology that Shakti provides.
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Automatic solar electricity supply to the grid is not a big invention, because when farmer want to stop the solar pump after watching that irrigation has been completed ,he need to go to the farm. Now .farmer will switch off pump and start grid supply manually.
Farmer cannot observe remotely that all farm has get irrigated.
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In what would expand the coverage of solar energy in rural areas, the Union ministry of new and renewable energy (MNRE) has raised allocation target for Rajasthan under component A and C of Pradhan Mantri Kisan Urja Suraksha Evam Utthan Mahabhiyan (PM-KUSUM).
Chief minister Bhajan Lal Sharma had written a letter to MNRE minister Prahlad Joshi requesting an increase from the current target to 550 MW under the two Kusum schemes.
As per MNRE’s new order, Rajasthan Renewable Energy Corporation Ltd has been allocated an additional target of 1,000MW, taking the total to 1,550MW. The Centre provides subsidies under the schemes. MNRE has issued an additional allocation of 1 lakh agricultural pumps to be solarised. This allocation is in addition to the 2 lakh pumps previously issued.
Source Link
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Rajasthan has been one of the states in which Shakti Pumps is a leader in implementing the solar pumps.
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@piyush_narang This is order from Aug 2023, how it is relevant for Aug 2024
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I think what @piyush_narang has posted shows 2 values, “Total order value” which was the full value of order in 2023. As of filing DHRP, partial order has been fulfilled an last column shows Balance Order value.
So it is a possibility that Premier energies is manufacturing solar part of the pump for Shakti’s product. So remaining order value is 900 crores. So assuming (without any data) that solar part of the product costs say 25% of selling price, then they would be aiming atleast 3600 cr worth of cumulative sales in coming 4-6 quarters. Their last FY’s revenue was ~1350
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Only @piyush_narang can confirm, what is the date of this data is it recent?
Order book data is as of March 15th, 2024. This is on page #212 from their DRHP that I got from Premier’s website.
Solar module is about 50% of their sales as confirmed by management during Q4FY24 con-call. Below is the screenshot from the transcript. They had order book of Rs. 2400 by end of March 2024. So remaining order of Rs. 1102cr with Premier is in line to support fulfillment of their order book.
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Certainly, these were the points I was to make…
Last Aug, 10 to this Aug 10 (date of RHP), they have done ~1600 cr of sales. This means 800 cr of modules. Out of this they have procured 500 cr from premier energies.60%. For them to use this 900 cr remaining in next probably 6 quarters, 3000 cr of revenue in next 6 quarters. Which is 500 cr quarterly.
My sense is they will easily do 500 cr quarterly runrate…
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Thank you @piyush_narang this is really a good find.
That’s roughly what Mgmt. is also guiding na ? 2000 Cr. order book to be executed in 15 months.
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Indeed Shakti Pump is customer of Premier Energies (called out wthin first 35 seconds of this video)
Tarun
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Some progress starting to happen under Component C
Maharashtra Cabinet Sanctions ₹100 Billion for Solar Projects (mercomindia.com)
Maharashtra State Elec. board subsidiary Solar Agro Power recently invited bids to procure 49 MW of Solar power under Component C of PM KUSUM program for Feeder level solarization.
Similarly in J&K projects between 1kw to 30 kw to solarize 4000 grid connected pumps.
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Another Component C tender from UP this time:
- 10,000 grid-connected agriculture pumps under KUSUM Component C-1
- Financially, the project is estimated to cost INR 407.41 crore, inclusive of GST.
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Recently listed Premier Energies has today announced a large 215Cr order for 8000 odd solar pumps under KUSUM Component B received from Uttar Pradesh Dept of Agriculture.
I was under the impression that Premier Energies was into manufacturing and supply of solar modules for solar pumps and not the pumps themselves. Have they ventured into pumps as well? In that case, are they directly competing with Shakti Pumps or could they be buying the pumps from Shakti Pumps?
Edit: From DRHP it indeed appears that they provide EPC services in solar pumps wherein they make the modules and source the pumps from vendors like Shakti.
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