FIIs & DIIs Increase Stake: Smart Metering Solutions Provider to Establish 1 GWp Solar Module Manufacturing Plant in Jaipur!
The company’s shares have delivered an impressive return of over 6,200 per cent in just 3 years.
RMC Switchgears Ltd has announced plans to strengthen its foothold in the renewable energy sector with the establishment of a state-of-the-art Solar Module Manufacturing Plant and a Solar Module Mounting Structure facility in Badodiya Village, Chaksu Tehsil, Jaipur, Rajasthan. The facilities, with an annual production capacity of 1 GWp each, reflect RMC’s commitment to advancing sustainable growth and renewable energy capabilities.
The project involves a capital expenditure of ₹100 crore, which will be funded through a mix of internal accruals, equity, and debt, highlighting RMC’s disciplined financial strategy. Strategically located on land adjoining the company’s existing operational plant, the new facility will ensure seamless integration and operational efficiency. The plants are expected to commence operations by July 2025, with commercial revenues projected from August 2025.
Strategic Execution via RMC Green Energy
The project will be executed through RMC Green Energy Pvt. Ltd. a key subsidiary of RMC Switchgears Limited. To streamline operations, RMC plans to increase its ownership in the subsidiary from 51 per cent to nearly 100 per cent. This will be achieved through equity infusion and acquiring shares issued under a fresh issue by the subsidiary. The move to make RMC Green Energy a wholly owned subsidiary underscores the company’s vision of creating a robust and integrated solar ecosystem.
DSIJ's ‘Penny Pick’ service provides research-backed penny stock recommendations below Rs. 100. If this interests you, do download the service details here.
Backward Integration for Enhanced Efficiency
This expansion marks a significant step toward backward integration, aimed at reducing reliance on external suppliers. The Solar Module Manufacturing Plant will cater to RMC’s internal requirements for ongoing and future Solar EPC (Engineering, Procurement, and Construction) and IPP (Independent Power Producer) projects. By ensuring timely execution, cost efficiencies, and a reliable supply chain, the initiative will not only support captive consumption but also address strong market demand, contributing to the company’s growth in FY26.
Driving India’s Renewable Energy Ambitions
The project aligns with RMC’s Vision 2030, which aims to position the company as a ₹5000 crore enterprise. It will also bolster India’s ambitious renewable energy targets by enhancing RMC’s capabilities to execute large-scale Solar EPC projects. With this strategic initiative, RMC Switchgears Limited is poised to solidify its role in the renewable energy ecosystem, drive sustainable growth, and create value for its stakeholders.
On Monday, the shares of RMC Switchgears Ltd closed the day at around Rs 1104.45 per share. The company’s current market capitalization stands at Rs 1138.50 crore. The stock has delivered a multibagger return of over 6,000 per cent in just 3 years.
Investors must keep this Small-Cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.