India's Jakson bets on solar to replace diesel generators - report

(SeeNews) - May 12, 2014 - Indian diesel engines supplier Jakson Group anticipates sales from solar and electrical contracting activities to match its diesel revenue in three years, according to its managing director.

Sameer Gupta told Bloomberg in an interview published on Monday that the group expects to achieve a 70% sales growth in three years for a total of INR 25 billion (USD 418m/EUR 303m). Jakson expects its solar and electrical contracting sales to account for 50% of total revenue by then, up from just a third at present.

The company intends to expand its own portfolio with a further 80 MW of photovoltaic (PV) capacity in addition to installing solar projects for third parties, the director noted. In late March, Jakson said it had commissioned a 10-MW solar park in Odisha state for the country’s largest generator NTPC Ltd (BOM:532555).

Jakson has been engaged in the assembly and sale of diesel engines made by US company Cummins Inc (NYSE:CMI). However, Gupta believes it is “no longer sustainable to use diesel generation as a continuous source of power”. According to him, the market will continue to grow but for different applications.

Jakson has already launched solar-based generators, the payoff period for which is less than seven years, Gupta added.

(INR 10 = USD 0.167/EUR 0.121)

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