Jupiter International Limited (JIL), as per the credit rating report, is engaged in the trading of IT peripherals. The company had set up a solar cell manufacturing plant of 301 MW. The solar cells are manufactured at an 800 MW integrated production facility situated in Baddi, Himachal Pradesh. It includes a 500 MW mono PERC solar cell facility and a 300 MW multi-crystalline solar cell facility. It is an ISO 9001:2015; ISO 14001:2015 and ISO 45001:2018 certified company. Its clientele includes Tata Power Solar, Waaree, Webel Solar, APS, and BHEL, among others. The company was incorporated in 1978 and is based in Kolkata, West Bengal.

Company Overview:

Name: Jupiter International Ltd.

Industry: Solar Energy

Headquarters: Kolkata, West Bengal

Key Focus:

Jupiter International Ltd. is a prominent player in the solar energy market in Ethiopia. The company is involved in various aspects of the solar industry, including:

1. Solar Power Solutions: They provide comprehensive solar power solutions, including the design, installation, and maintenance of solar energy systems for both residential and commercial clients.

2. Solar Products: Jupiter International offers a range of solar products such as photovoltaic panels, solar inverters, batteries, and other related equipment necessary for effective solar power generation and storage.

3. Sustainability Initiatives: Jupiter International Ltd. is committed to promoting renewable energy and sustainability. Their projects often aim to reduce reliance on fossil fuels and decrease carbon emissions.

Product & Services:

Product Category	Product Description
Multi-Crystalline Photovoltaic Cells	Photovoltaic cells made from multi-crystalline silicon, featuring a diamond wire saw cut, blue antireflective coating, and soldering pads.
Multi-Crystalline Modules	High-efficiency, reliable, and optimal output modules with approximately 16% efficiency and a fill factor over 75%.
Roof Top Solutions	Solar solutions for rooftops, including Grid Tied, Grid Interactive, and Off-Grid systems, driven by government subsidies and incentives.
Off-Grid Solutions	Solar systems that convert sunlight directly to electricity, independent of local utility grids, beneficial for areas without grid access.
Ground Mounted Solutions	Solar plants connected to the Utility Grid to feed surplus electricity, making it a source of income for the owner; suitable for home, industrial.

Subsidiaries:

Jupiter Solar Power Limited

Sector: Renewable Energy (Solar)

Key Operations: Manufacturing of solar cells and modules, solar power generation.

Percentage of shareholding: 58.98%

PAT: 12.11 Cr

Funding Details:

Announced Date	Money Raised	Investor
16 July, 2024	300 Cr	Value Quest Advisors
13 March, 2022	170 Cr	Edelweiss Alternative Asset Advisors

Expansion Plans: With the new investment, Jupiter International plans to establish a new manufacturing facility with a capacity of 1.8 GW for solar cells and 1.2 GW for solar modules. In addition to this, the company has entered into a joint venture with AmpIn Energy, aimed at developing an integrated solar cell and module capacity of 1.2 GW each. This expansion is expected to significantly bolster Jupiter International's position in the renewable energy sector.

Current Operations: Jupiter International is headquartered in Kolkata and operates a state-of-the-art solar cell manufacturing facility in Baddi, Himachal Pradesh, which currently has a production capacity of 800 MW per year. The company, which was incorporated in 2009, has made substantial strides in the renewable energy sector under the leadership of its promoter, Alok Garodia.

Management Team:

  

Devki Nandan                   Rajkumar Garodia                 Alok Garodia

VP - Operations               Chairman                               Managing Director 

Particulars	FY23	FY22
Revenue	429.99	301
EBITDA	21.64	48.69
PAT	-35.89	34.49
PAT Margin	-8.35%	11.46%
EPS	-22.86	21.97

Key Takeaways:

• The company experienced significant revenue growth, increasing from ₹301 crore in FY22 to ₹429.99 crore in FY23, reflecting a 42.85% growth.
• EBITDA dropped sharply from ₹48.69 crore in FY22 to ₹21.64 crore in FY23, indicating a 55.56% decline. This suggests a deterioration in operating performance or increased operating costs.
• The company moved from a profit of ₹34.49 crore in FY22 to a loss of ₹35.89 crore in FY23. This indicates a significant decline in overall profitability.

Industry Overview

Global Solar Industry Growth:

• The global solar power industry is experiencing significant growth due to increasing focus on renewable energy, environmental sustainability, and reducing carbon emissions.
• According to various reports, the global solar power market is expected to grow at a CAGR of over 20% during the next decade, driven by both developed and developing countries transitioning to greener energy sources.

Rising Demand for Solar Power:

• Demand for solar energy has been driven by declining costs of solar photovoltaic (PV) technology and increasing electricity demand. The rise of grid parity (where solar becomes as affordable as traditional power sources) has further accelerated adoption.
• There is a growing demand for solar cells and modules, with key sectors such as residential, commercial, and industrial facilities increasingly installing solar energy systems.

India’s Renewable Energy Push:

• India, where Jupiter International operates, is rapidly advancing its renewable energy capacity, aiming for 500 GW of non-fossil fuel capacity by 2030.
• The Indian government has introduced various incentives, subsidies, and favorable policies to promote the adoption of solar energy. This includes initiatives like the Production-Linked Incentive (PLI) scheme for solar manufacturing and the development of large solar parks.

Competitive Market Landscape:

• India’s solar sector is highly competitive, with both domestic and international players, such as Adani Solar, Vikram Solar, and Waaree Energies, contributing to the solar module manufacturing space.
• Jupiter International faces competition from larger integrated solar companies that have well-established supply chains, economies of scale, and a strong market presence.

Peer Comparision:

Particulars	Jupiter International Limited	Modern Insulators ltd
Revenue	429.99	443
PAT	-35.89	34.49
Net Profit Margin	-8.35%	11.46%
CMP	1675	138
MCAP	2627.2	653
P/E Ratio	-73.20	17.83
P/B Ratio	51.22	1.53

Key Strenghts:

Presence of over a decade of group in solar cell manufacturing business: Jupiter group is an established player in the solar cell manufacturing sector, with an operational track record of over a decade. Mr. Alok Garodia (MD), son of Mr. R. K Garodia, with experience of more than a decade in solar industry is actively involved in the family business and looks after the day-to-day affairs of the group. A team of qualified and experienced personnel assist the directors to oversee the business.

Deterioration in financial performance of FY23 albeit improvement witnessed from Q2FY24 onwards on the back of stabilization of newly commissioned unit: The company's performance deteriorated in FY19 due to price reductions by Chinese solar manufacturers, leading to liquidity issues and NPA status. Government support in FY20 and FY21 improved financials, but raw material cost hikes caused a significant drop in PBILDT margin in FY22. Despite a 43% revenue increase in FY23, profitability suffered due to delays in commissioning a new plant and losses from asset sales. However, profitability has improved from Q2FY24 with the stabilization of the new unit.

Key weakness:

Volatility in raw material prices and finished goods: Silicon wafer is the primary raw material for manufacturing SPV cells which is imported from China. Since raw material prices are volatile in nature, the profitability margin of the company is susceptible to input price fluctuation. Further, the company imports its major raw materials leading to susceptibility of profitability to forex fluctuation risk.

Highly regulated industry: India imports majority of solar equipment from China, Malaysia, Vietnam, and Thailand. In order to promote domestic solar manufacturers, Government of India has launched various schemes viz. Rooftop Program, Central public sector undertaking scheme (CPSU) and PM Kusum Scheme, which emphasizes on using domestic manufactured modules and solar cells. Along with these schemes, Product Linked Incentive (PLI) and imposition of Basic Custom Duty (BCD) augurs well for small sized solar project developers, rooftop power projects and residential customers who rely largely on domestic solar modules. With the focus of government to encourage domestic cell manufacturers, Jupiter group is expected to reap benefits out of the scheme & incentives along with the increase in demand for cells.

Customer concentration risk albeit reputed clientele: The customer profile of the company is concentrated with top 10 customers accounting for around 80% of the total sales in FY22 as against 76% in FY21. However, the customer profile comprises of reputed solar module manufacturers.