City-based solar photovoltaic modules maker Vikram Solar is keeping a close watch on the trade negotiations between India and the US, with the latter a key export market for the company, where it has also planned to set up a manufacturing capacity.

The company, which has filed a draft prospectus for its initial public offer and has received Sebi’s approval last month, is planning to set up a 3 GW (gigawatt) solar photovoltaic modules plant in the US as part of the company’s expansion plan of 15.5 GW module and 5 GW cell capacity by fiscal year 2026-27.

The company has a 4.5 GW module manufacturing capacity across its two plants in Bengal and Tamil Nadu.

The US market, where the company has a sales office, is the largest export market for the company, contributing around 61.10 per cent of the company’s total revenue from operations as of FY24.

“The plan for the US project is still on, and we have not scrapped it. A project from inception to final implementation normally takes around 15-18 months. But, at the same time, the way the Indian government has been pushing through the ALMM (Approved Models and Manufacturers of Solar Photovoltaic Modules), the domestic market is evolving rapidly. As of now, we have course corrected our focus mainly towards the domestic market,” said Ranjan Jindal, chief financial officer, Vikram Solar.

“But going forward, we all know that the export market to the US will fetch better margins. So we are keeping a close watch on the developments,” Jindal said.

The company, which is setting up a 6 GW module plant in Tamil Nadu, is also looking to develop a vendor park over 40 acres in a bid to step up backwards integration.

“The idea behind developing the vendor park is to nearshore our supply chain. Suppliers of aluminium frames, encapsulants, junction boxes, etc, could set up their units in the park, and we will provide the common infrastructure. This will help in reducing the lead time for procurement, planning inventories better and lowering investment on working capital,” said Krishna Kumar Maskara, interim CEO, Vikram Solar.