Marsons Limited announced that the company is entering into the renewable energy sector. The company was historically focused on the Transmission and Distribution (T&D) Transformer segment and has announced its strategic entry into the renewable energy sector.
The company stated that this move is part of its broader effort to diversify its portfolio and strengthen its position in the Indian power sector. Marsons Limited aims to capitalise on the growing demand for renewable energy infrastructure by expanding its product offerings to cater to solar and wind power plants.
The company’s primary focus in the renewable energy segment will be the supply of specialised transformers. Specifically, Marsons will introduce Inverter Duty Transformers and Generator Step-Up Transformers, which are essential components in solar and wind power generation.
To support this initiative, the company plans to invest around ₹2.5 crore in machinery and prototype development over the next 3 months. This investment is expected to unlock significant growth opportunities, with the potential for the renewable energy segment to contribute 30-40% of the company’s revenue by FY27.
In addition to expanding its transformer product range, Marsons is also exploring solar power plant development as a new vertical in partnership with Aditya Clean Energy Systems (P) Ltd. As part of this collaboration, the company recently received a Letter of Intent (LOI) for a potential project to develop a 150 MW solar power generation plant. While the project is still in its early stages, Marsons is required to complete a sample 2 MW solar project before receiving any formal Letter of Award. The project is currently subject to cancellation risks, but it represents a significant step toward diversifying Marsons’ business operations.
The company plans to conduct site surveys and prepare a Detailed Project Report (DPR) to evaluate the project’s viability, cash flow requirements, and execution risks before proceeding further. These steps will help Marsons assess the long-term feasibility of solar power plant development as a new growth avenue.
Marsons is optimistic about its strategic expansion into the renewable energy sector. The company believes that entering new markets, particularly renewable energy, will lead to positive outcomes. By maintaining its commitment to delivering high-quality products and services, Marsons aims to drive sustained growth and success in the evolving power sector.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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