Indian solar firm wins its largest order ever in Australia, part of international expansion
NEW DELHI, NNA - Indian solar power firm Sterling and Wilson Solar Ltd. has bagged its largest order yet in Australia taking its cumulative order book in the country to 49 billion rupees ($648 million).
The company and its Australia-based units signed the 26 billion rupee engineering, procurement and construction deal as well as a long-term operation and maintenance contract valued at 4.15 billion rupees, Sterling and Wilson Solar said Monday. The contract can last up to 20 years.
Sterling and Wilson Solar, also known for short as SWSL, had set up operations in Australia just 15 months ago, the company said.
“With this award, SWSL has clearly established its presence in Australia,” the firm said in a statement Monday.
The company said on a conference call with analysts in February that in Australia the company had already received orders around 17.5 billion rupees since April 2019.
A substantial portion of its international revenues for the fiscal year ending in March 2021 will come from Australia, Latin America and the United States, where construction of solar projects is going ahead despite shutdowns due to the Covid-19 pandemic.
Business in those markets follows cultivation of a “strong team that is completely aligned with the local requirements”, company director and global CEO Bikesh Ogra said in a statement on Monday.
SWSL says it has signed two projects in India as well with global power producers worth 6.2 billion rupees.
India is allowing some projects to proceed despite widespread shutdowns to contain the Covid-19 outbreak.
“Renewable projects in India, which also add considerably to the company’s revenues, have been allowed to restart now,” the company said.
He said the company was in the process of handing over projects that are being completed post-shutdown and starting others.
“The worst impact of Covid-19 seems to have passed and the company is looking forward to increased activity in order booking and revenues,” the statement said.
According to Vinay Rustagi, managing director, Bridge to India, a clean energy consultancy, Indian EPC contractors have acquired expertise in building solar projects at record low costs and are using strong engineering skills and low costs to successfully compete internationally and hoping to earn better margins than in the Indian market.
"We expect this trend to continue as more Indian EPC contractors go to overseas markets," he told NNA on Tuesday.