He says their background in the energy industry and being based in Ahmedabad provided the brothers a natural advantage in reaching out to companies
entering the solar energy industry. “We tapped into the initial growth in solar power in Gujarat, and then pan-India,” he says, adding falling tariffs have exerted a lot of pressure on project design.
Gensol clocked annual revenues of Rs 75 crore in the last two years and is aiming to touch Rs 100 crore this year. “We have invested in the right areas, we are a profitable company and we are doing reasonably well. We are sufficiently funded at present and are not looking for any funding,” Jaggi says.
The other major business for Gensol is O&M contracts for solar power projects. “In the solar value chain, it is usually the most neglected part. While the company builds the project, maintenance is rarely an area of focus. We sensed a latent opportunity and decided to pursue it,” Jaggi adds.
Gensol entered into a joint venture with with Solarig, a Spanish company with a global O&M contract portfolio of 1.2 GW. “More than financial engineering, technology and project engineering will be the game changer in the Indian solar energy industry. As companies
compete to bring down the cost of power, investment in efficient systems is key to healthy returns,” Jaggi points out.
He says the O&M market is witnessing 50-60 per cent growth, quarter on quarter, but adds that the domestic solar power market is stagnant and the company added 7-8 GW of contracts in the last two years.
The Jaggi brothers have incubated six small ventures, including Prescinto Technologies, which provides supervisory control and data acquisition (SCADA) services. SCADA is used for remote monitoring and control of power demand and supply.
“D&E is 70 per cent of our business, O&M is about 28 per cent and SCADA is the new segment with only 2 per cent. We expect to increase the SCADA revenue share to 15-16 per cent in the next eight months. We aim to be at over 30-35 per cent margin in our existing business by 2019 with D&E, O&M, SCADA and energy storage,” Jaggi says.
Calling it “much more than Amazon” for solar power products, the Jaggi brothers have launched Ezysolare, an online marketplace for solar equipment installers in India, and Ezybox, a mobile, solar-powered inverter.