US–China tariff war may benefit Indian solar firms, says Emmvee
DV Manjunatha, Founder and MD, and Suhas Donthi, Group CEO
Amid geopolitical tensions and the ongoing US–China trade war, the shifting dynamics in the global solar market may play to the advantage of Indian players, observe DV Manjunatha, Founder and MD, and Suhas Donthi, Group CEO of Bengaluru-based solar panel manufacturer Emmvee Energy.
In 2023, exports to the US accounted for about 18–20 per cent of Emmvee’s revenue. The company is now evaluating opportunities to set up a manufacturing facility in the US, amid increasing barriers against Chinese imports in that market.
“The US has imposed significant duties on Chinese solar components and even banned imports from certain regions over concerns of forced labour. These policy shifts create new avenues for Indian manufacturers to tap into global demand,” they said.
Manjunatha and Suhas discuss the group’s strategy for expansion and domestic growth .
Have the US restrictions on Chinese imports led to a rise in your exports to that market?
Suhas:Yes, in 2023, exports to the US accounted for about 18–20 per cent of our revenue. However, with India’s own solar installation boom—adding 25 GW in 2024 alone, we have redirected our focus to serve the domestic market. As a result, our current exports are comparatively lower.
Are you looking to set up manufacturing units in international markets such as the US?
Suhas: We are evaluating such opportunities. However, we’re closely observing policy developments in these markets. Policy stability will be a key factor in our decision-making.
Indian solar manufacturers have traditionally relied heavily on Chinese imports for raw materials. Has that changed for Emmvee?
Suhas: Yes, significantly. Apart from wafers and polysilicon, most raw materials are now available domestically. Our import dependency has dropped drastically. Earlier, 90 per cent of modules were imported from China; now, that figure has come down to zero. We’ve transitioned toward self-reliance and have built a localised supply chain to mitigate geopolitical risks. For every imported component, we also maintain a domestic supplier alternative, which we prefer to use whenever possible.
How are manufacturers like Emmvee responding to the threat of Chinese dumping?
Manjunath: As for dumping, the Government of India has taken strong steps. A 40 per cent Basic Customs Duty (BCD) has been imposed on imported modules.
Additionally, the ALMM (Approved List of Models and Manufacturers) and BIS (Bureau of Indian Standards) certifications are mandatory for any product that connects to the grid. Since ALMM approval is limited to Indian manufacturers, this has created a significant barrier for Chinese players.
European nations like Germany have withdrawn many of their solar subsidies. Has this impacted your international operations?
Manjunath: Between 2006 and 2014, we were one of the largest exporters to Europe from India. Since then, we have shifted focus there toward power generation and now operate grid-connected solar plants in Europe. While subsidy withdrawals have made module sales more challenging, the high cost of conventional energy means that the demand for solar remains strong.
The US market, on the other hand, is growing due to trade barriers imposed on Chinese imports. The US has levied significant duties and even banned imports from certain Chinese regions over concerns of forced labour. This makes Indian manufacturers like us an attractive alternative for American buyers.
You recently announced a massive expansion plan in Karnataka, with an investment of ₹15,000 crore. Could you walk us through what this entails and what else is on the cards for 2025?
Manjunath: The ₹15,000 crore investment will be spread across three to four phases. For the first phase, which is expected to be rolled out in 2026, we are in discussions with the State government for land allocation and related infrastructure. The government has been supportive and is working with us to expedite the process. In parallel, we are also expanding our existing capacity by another 4 GW, which will become operational by the end of this calendar year.
What is your expected topline for FY25?
Suhas: We are on track to close FY25 with a topline of around ₹2,500 crore.
Published on April 18, 2025
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