IBT conducted an exclusive interview with Mr. Vineet Mittal, the Director of Finance and Strategy at Navitas Green Solutions Pvt. Ltd under its Green Guardians interview series. As a prominent player in the clean energy sector, Mr. Mittal shares insights into the company’s journey, challenges faced during the early years, and its vision for the future.
From pioneering agrivoltaics to addressing financing hurdles, he sheds light on the growth strategies and opportunities in the evolving clean energy landscape. Discover how Navitas Green Solutions is revolutionizing the solar sector and contributing to India’s energy transition in this engaging interview.
Image Source: Navitas Solar
IBT: What is your inspiration behind starting Navitas?
Interviewee: So first of all, thank you for inviting me to speak on this platform. It’s a pleasure. And it’s a good initiative to directly connect with the Clean Energy related entrepreneurs. The motivation behind our journey into Clean Energy stemmed from our textile background, where we noticed certain pollutants affecting the environment. We felt compelled to make a positive change, either by altering existing processes or adopting environmentally friendly practices. The inspiration to work in a socially responsible manner led us to explore various options, and ultimately, we found our calling in the solar industry.
IBT: As an influential player in the clean energy sector, how do you assess the competitive landscape and growth prospects for the industry? Also, what is your target audience? And what strategies does your company employ to offer a superior value proposition?
Interviewee: Our belief in distributed solar as the true application of solar energy has always been at the core of our business. The ability to generate solar power at the point of consumption, without relying on an expensive transmission network, is the real beauty of solar energy. This has remained our primary focus.
Our customer base is extensive, with around 800 clients throughout the country. We have been actively involved in installing solar systems and supporting rooftop electrification and pumping programs. By offering differentiated solutions and bringing globally available technologies to meet the specific needs of remote areas, we aim to remain relevant in a competitive market. Our dedication to supplying the best products even to the remotest parts of the country drives our commitment to sustainability and inclusivity.
IBT: As an entrepreneur, you must have faced a lot of challenges during the initial years. Could you please brief us about those challenges and the impact you’ve made thus far?
Interviewee: One of the foremost challenges was arranging enough debt finance, for the Greenfield project like this, because banks had not seen a lot of history in solar manufacturing within India. This was 10 years ago. Now, there are a lot of investors and a lot of government favourable policies. So that is slightly easing right now. But in the early days, enabling finance for the setting up of the factory, for working capital, those were like key bottlenecks that we had to manage and mitigate.
Our team’s expertise and educational qualifications in management played a crucial role in mitigating these challenges. While it was certainly a difficult period, we were able to navigate through it and find suitable solutions to move forward.
IBT: Navitas started in 2013 and it has been almost 10 years. So can you please tell us the challenges you face today at a time when even the government is pushing the sector?
Interviewee: One of the major challenges we currently face in the industry is the constant fluctuation of policies at the central level. The lack of a clear and stable policy framework makes it difficult for businesses to plan and forecast their strategies for the future. We need greater clarity and a well-defined roadmap for the next three to five years, outlining the government’s stance on various aspects such as government procurement, incentive programs, tariff and non-tariff barriers, and support for local manufacturing.
Currently, these policies exist in bits and pieces, and there is no comprehensive and cohesive policy that covers all the crucial aspects of the industry’s growth. Other countries and regions have shown success in providing a stable and comprehensive policy environment, and we believe that adopting such an approach would greatly benefit all stakeholders in the industry. A long-term and predictable policy framework would provide the much-needed visibility and confidence for businesses to invest, expand, and contribute to the growth of the clean energy sector in India.
IBT: What is the long-term strategy of Navitas Solar, and are there any specific areas where you and the company are focusing right now?
Interviewee: In the long term, our main goal is to keep delivering excellent products to our customers in India while also expanding our reach to other large countries and continents through exports. We are committed to being a value-driven company, providing products that offer added value to our customers. Scaling up our operations and reaching more customers in different geographies will be a crucial part of our growth strategy.
Furthermore, we are exploring diversification opportunities in the supply chain, including raw material supply and downstream execution activities. We aim to cater to different categories of customers to ensure our relevance in the market. Rather than solely relying on our manufacturing arm, we are looking to diversify our business by adding new related ventures.
In essence, we envision our company as a comprehensive platform that covers various aspects of the value chain. Our progressive approach involves steadily expanding our presence and offerings across the value chain to better serve our customers and establish a strong position in the industry.
IBT: Solar plus storage is becoming extremely popular these days. Do you think it is a growing area for startups today and another area for investment opportunities when it comes to businesses?
Interviewee: Certainly, storage is an essential aspect of renewable energy systems. Solar energy, being intermittent, requires reliable storage solutions to ensure continuous power supply. There are various storage methods, including mechanical storage in the form of batteries, which come in different capacities and types. In recent years, lithium-ion batteries of various chemistries have gained popularity.
Additionally, pumped hydro is being explored as a potential storage solution, harnessing potential energy stored in water on large dams. Storage and solar power are closely linked, as solar energy cannot reach its full potential without effective storage mechanisms. The affordability of storage solutions has been a key factor in their widespread adoption. While solar with storage may be slightly expensive in some cases, it has become manageable for specific applications.
As a result, the storage market presents a significant opportunity for growth. We, as a company, have actively engaged in developing storage solutions for various markets, including Energy Storage Systems (ESS) and electric mobility, such as batteries for electric scooters and three-wheelers. With green power generated by solar, these batteries are well-suited for India’s road conditions and driving requirements.
For anyone seeking to enter the clean tech ecosystem, the storage sector offers an attractive and promising avenue to contribute to sustainable energy solutions.
IBT: With the PLI scheme, new players are coming and the capacity is increasing. How can it push the existing players in the market? Also, what recommendation do you have for the policymakers to ensure that the sector can get enough acceleration?
Interviewee: Certainly, the existing players and a few new entrants have applied for the Production Linked Incentive (PLI) scheme, received allocations, and are establishing manufacturing facilities. India’s self-sufficiency in the supply chain, from silicon to wafer, invert, and modules, will be a significant advantage.
As an MSME entrepreneur in the manufacturing space, operating in the industry for almost a decade, we do have some recommendations and challenges. We believe that there should have been a separate allocation for midsize and small-sized companies that have been present in the industry for at least five years. Moreover, offering a certain level of allocation for expansion plans specifically targeting module lines and additional support for the cell line would have been highly inclusive. The current structure of the scheme seems feasible for only large corporates, which may not necessarily possess the technical expertise that existing Indian companies like ours already have.
In conclusion, a more tailored and inclusive approach to the PLI scheme could have better supported and encouraged long-standing Indian manufacturing companies, allowing them to contribute significantly to the nation’s solar energy growth.
Mr. Vineet Mittal has 10+ years of hands-on experience in sales & finance, networking & business development. He has vast experience in Polyester Films, Construction Materials, Textile and renewable energy. Mr. Mittal was awarded as Green Influencer of the Year by Solar Quarter. Mr. Mittal has also won the Green Trend Setter Award for the steps taken in the field of sustainability by Vyapaar Jagat. Mr. Mittal was awarded Youth Icon of the Year in the Make in India Category by EQ. He is featured among India’s 100 Most Powerful Solar Sector Business Leaders by Solar Quarter.
