GP Eco Solutions India | Riding the Green Wave: Can GP Eco Solutions Capitalize on India’s Renewable Energy Push? – 2024

GP Eco Solutions India Introduction:

Powering a Sustainable Future: Welcome to the GP Eco Solutions Blog!
Are you interested in harnessing the power of the sun to create a greener tomorrow? Do you want to learn more about innovative solutions that can reduce your energy footprint and save you money? Then welcome to the official blog of GP Eco Solutions Ltd!

As a leading provider of solar energy solutions in North India, GP Eco Solutions is passionate about helping individuals and businesses make the switch to clean, renewable energy. Here on this blog, we’ll be diving deep into all things solar, offering insights and information to empower you on your sustainable journey.

Whether you’re a homeowner considering rooftop solar panels, a business owner exploring commercial solar solutions, or simply someone curious about the future of renewable energy, this blog is for you

Brief about Company of GP Eco Solutions India

Overview of GP Eco Solutions India

Company was originally incorporated on July 30, 2010 as a Private Limited Company as “GP Eco Solutions India Private Limited” in , Kanpur. company converted from a Private Limited Company to Public Limited Company, pursuant to a special resolution passed by the Shareholders at their Extra-Ordinary General Meeting held on October 25, 2023. Consequently, the name of our Company was changed to “GP Eco Solutions India Limited”

History of GP Eco Solutions India

GP Eco Solutions Ltd, formerly GP Eco Solutions India Private Limited, is a company in India’s solar energy industry. Here’s a quick rundown of their history:

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• Founded: July 30, 2010
• Originally operated as a private limited company
• Became a public limited company in November 2023

They started as a distributor of solar panels and inverters, and have grown into an integrated solar energy solutions provider. Their core business is still distribution, but they also offer EPC services (engineering, procurement, and construction) for solar power projects, mainly for commercial and residential clients.

Management of GP Eco Solutions India

Share Holding pattern of GP Eco Solutions India

Qualitative Factors of GP Eco Solutions India

• Experienced Promoter and management team with strong industry expertise and successful track record;
• We have long term relationships with marquee brands supported by our committed strategy on engagement with customers;
• Good track record for the last 3 years; and
• Distributorship of Sungrow, Saatvik, Longi in Northern India

Strategy

• Further explore initiatives to strengthen control over our supply chain
• Increase geographical presence

Industry Outlook

SOLAR INVERTER MARKET OVERVIEW

• The Solar Inverter Market size was valued at USD 7.7 billion in 2022 and is expected to reach USD 17.9 billion by 2030, at a CAGR of 8.8% from 2022 to 2030.
• The market segmentation by Application is categorized as (grid-connected and off-grid) and
• The market segmentation by End-user categorized as (utility and rooftop)
• Grid-connected segment is fastest fastest-growing segment during the forecast year
• The grid-connected segment was the largest segment and valued at USD 22.98 billion in 2017
• APAC is most dominating region during the forecast period
• It also includes an in-depth analysis of drivers (factors influencing market growth), trends (emerging patterns or shifts in consumer behaviour), and challenges (barriers or obstacles faced by the industry)
• India Solar Power Market Largest-Growing Segments
  • The Grid Connected Segment
    • The main feature of the grid-connected segment is that it supplies solar energy directly to the building loads without the need for any energy storage system. Additionally, the segment is designed in such a way that the surplus energy is fed back to the grid whereas the energy will be imported from the grid if there is any shortfall.
  • Solar Power Market in India Dynamic
    • One of the key factors driving the Indian solar power market is the increasing investments in renewable energy. There has been a significant change in the global energy mix over the last decade with several improvements in energy efficiency playing a major role in balancing the energy supply and demand. As per the IEA, the cost of electricity production is comparatively higher than that of conventional sources. As a result, installed renewable power generation capacity has gained traction over the last few years.
  • Key India Solar Power Market Challenge
    • The low conversion efficiency of solar PVs is one of the key challenges hindering India solar power market growth. One of the essential requirements of an off-grid system is that it must be self-sufficient in terms of capacity to meet its overall needs. However, a majority of grid sources in several off-grid projects are highly unreliable. Thus, it is necessary to have a sizable PV system and energy storage to produce and store enough power to meet the total electricity needs
  • Solar Power Market in India Customer Landscape
    • The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies
  • India Major Solar Power Market Companies
    • Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
    • ABB Ltd: The company offers solar power such as solar products, solar systems, solar solutions, and services to optimize performance.
    • The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
      • ACME Solar
      • Adani Group
      • Azure Power
      • Canadian Solar Inc.
      • GCL System Integration Technology Co. Ltd.
      • Huawei Technologies Co. Ltd.
      • JA Solar Technology Co. Ltd.
      • Lanco Infratech Ltd.
      • Larsen and Toubro Ltd.
      • Mahindra and Mahindra Ltd.
      • MVV Energie AG
      • Reliance Industries Ltd.
      • Risen Energy Co. Ltd.
      • SMA Solar Technology AG
      • Sterling and Wilson Renewable Energy Ltd.
      • Sungrow Power Supply Co. Ltd.
      • Sunsure Energy
      • Suzlon Energy Ltd.
      • ReNew Power

Business Data of GP Eco Solutions India

Verticals of GP Eco Solutions India

1. Distributor of Solar Inverters and solar panel
   A. On grid Solar Invertor
   B. Hybrid Solar Invertor & Batteries
   C. Solar Panel
2. Solar EPC
3. Operation and maintenance of Solar plant

Product wise break-up of GP Eco Solutions India

(Rs. in Lakhs)

REVENUE BIFURCATION BASED ON ITS SALE OF 3RD PARTY GOODS AND SALE MADE UNDER ITS OWN BRAND of GP Eco Solutions India

(Amount in Lakhs)

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REVENUE BIFURCATION ON THE BASIS OF B2B AND B2C of GP Eco Solutions India

(Amount in Lakhs)

Revenue contribution from Geography presence of GP Eco Solutions India

(Amount in Lakhs)

Customer dependency of GP Eco Solutions India

(Amount in Lakhs)

Supplier dependency

(Amount in Lakhs)

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Strength

• Strategic Partnerships with Industry Leaders
• Experienced Promoter and management team with strong industry expertise and successful track record
• Quality Assurance and Standards
• Strong and long-standing customer relationships

Peers group comparison

Subsidiary companies

• Invergy India Private Limited

Group companies

• SAR Renewable
  • SAR Renewable is a sole proprietorship firm which is managed and controlled by Mrs. Sneha Bajpai. M/s SAR Renewable operates as a Franchise Partner of Waaree Energies Ltd. SAR Renewable sells various products of the company under the brand “Waaree” or render EPC Services to customers. However, Sar Renewable entered into a Franchise Agreement with Waaree Energies Ltd dated 15th September 2020 and expired on 3 years that is 14th Sep 2023. As of now SAR is working with Waaree, but no formal agreement is renewed or executed recently.
• GP Electronics
  • GP Electronic is a sole proprietorship firm which is managed and controlled by Mr. Pradeep Kumar Pandey. It operates in the business of selling air conditioning (A/C) units.
• Invergy Power General Trading Co LLC
  • Invergy Power General Trading Co. L.L.C was incorporated on July 20, 2022 under Companies Law of the Kingdom of Saudi Arabia (Companies Act, 2006). The company address and the head office in the Emirate of Dubai. Following are the details of our Membership Certificate, issued by the Dubai Chamber of Commerce & Industry;

Business risk factors

• Depend on third parties for the supply of our products and such third parties could fail to meet their obligations, which may have a material adverse effect on our business, results of operations and financial condition
• Top ten clients contribute approximately 33.20%, 57.01%, and 51.76% of our revenues from operations for the year ended March 31, 2023, March 31, 2022 and March 31, 2021 respectively. Any loss of business from one or more of them may adversely affect our revenues and profitability.
• A significant portion of our revenue is derived from Rajasthan, Haryana, Uttar Pradesh, and Delhi, and any adverse developments in these states could adversely affect our business.

(Amount in Lakhs)

• Significant portion of our revenues is dependent upon sale of Solar Inverters. The loss of our product or a decrease in the supply or volume of such product, will materially and adversely affect our revenues and profitability
• Company entering into a new line of business involving assembly of Solar Hybrid Inverters through our Subsidiary, Invergy India Private Limited (“IIPL”). Since the company has no prior experience in this field, it could adversely affect our business if the operations are not managed properly.
• We have experienced negative cash flows in the past. Any such negative cash flows in the future could adversely affect our business, results of operations and prospects.
• subsidiary company “IIPL” has limited Source of origin of goods for procurement of hybrid solar inverters and lithium ferro phosphate batteries.

Financials

Key Financial Ratios

(Figure in Lakhs, except EPS, NAV ,% and ratios)

Balance Sheet

Profit & Loss

(Amount in Lakhs except EPS & NAV)

Cash Flow

Capital structure

(Amount in ‘Lakhs’)

SWOT

• Strengths:
  • Specialization in solar inverters and solar panels.
  • Offers comprehensive EPC services to commercial and residential customers.
• Weaknesses:
  • The inventory turnover ratio suggests slower sales, which could indicate inefficiency in inventory management or lower demand for products.
• Opportunities:
  • Expansion in the renewable energy sector.
  • Growing awareness and government incentives for solar energy solutions.
• Threats:
  • Competition from other renewable energy solution providers.
  • Market volatility and regulatory changes affecting the renewable energy industry

IPO Details 

GP Eco Solutions Ltd IPO Details

Why need of funds

Litigants involved

Refer DRHP page numbers 221-226

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