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SolarQuarter had an exclusive conversation with Manish Dhuria, Sales Head – North India, Krannich Solar and learned about the company’s key developments, current situation of solar distribution market and the challenges being faced by EPCs and installers. He also briefed us about the company’s strength and the likely evolution in the remaining part of the year.
How has the year 2022 been so far for Krannich? Which have been some key developments?
The first half of 2022 has given a mixed result. The first quarter (Jan-22 to Mar-22) was very good with outstanding sales for both modules and inverters. We were able to supply nearly 50 MW of modules (Trina, JA Solar, Longi, Suntech, Luxor and Solarium). Quarter 2 (Apr-22 to Jun-22) saw comparatively a bit of a slow down, but we were able to add Jinko solar to our portfolio, which would give us leverage in supporting the big development in the Indian market.
What is the current situation of the solar distribution market in India?
With the implementation of 40% increased BCD on imported modules there is a big concern regarding the pricing and availability of modules in the Indian market. Due to the same, there has been a slowdown in new project closures & subsequently there has been an impact on the supply & commissioning of projects. Also, there is some ambiguity regarding the ALMM extension in the next quarter. This is again resulting in customers opting for Indian alternatives. Since the mid of quarter 2, we were hoping that the situation would be pretty stable by the end of the quarter but due to increased exchange rates & shipping line charges, that stability is yet to be achieved.
What is the biggest strength of your company?
Krannich is one of the largest distributors in the solar industry across the globe. We are equipped with a very experienced sales & well-trained operations team here in India. With multiple warehouses across the nation, we cater to the solar modules & inverter demand from the remotest part of India with ease. Also having tied up with the best of the brand in the industry (Modules: – Trina Solar, JA Solar, Longi Solar, Jinko, Luxor and Solarium. Inverter: – SolarEdge, Growatt, Sofar and GoodWe. Structure: – K2 Systems.) we strive to provide the customer with an absolute peace of mind before & after purchasing material from us.
What are some challenges that you are facing because of the rising prices? How difficult is it for EPCs and installers?
As explained earlier due to the constantly increasing prices, it is getting challenging for EPCs and Installers to freeze a project cost thereby impacting project closures. Many of our customers who had closed projects earlier are now in a dilemma since the project was closed at prices that were equivalent to modules prevalent today. This is forcing them to either do a project at a loss (which will be a rare scenario) or put the project on hold for an indefinite period.
How do we see your company evolving in the second half of 2022?
We expect the prices to stabilize utmost by the mid of Quarter 3 (Jul-22 to Sep-22) which in turn will give a clear idea to the EPCs & installers to finalize their project costing. Also, since there is a considerable slump in the industry in Quarter 2 (Apr-22 to Jun-22) we expect Quarter 3 and Quarter 4 to be much better in a way.