Fujiyama Power Systems (UTLSOLAR) Commits INR 3 Billion to Ratlam Manufacturing Expansion

Fujiyama Power Systems (UTLSOLAR) has announced the establishment of a new greenfield manufacturing facility in Ratlam, Madhya Pradesh. The strategic expansion is designed to capitalize on accelerating demand within India’s residential rooftop solar market, specifically targeting opportunities generated by the PM Surya Ghar Muft Bijli Yojana (PMSGMBY) scheme. The company anticipates commissioning the facility in the first quarter of fiscal year 2027 (1QFY27).

Project Specifications and Investment

The Ratlam facility represents a total financial commitment of INR 3 billion. This investment aligns with a broader market trajectory, as India’s rooftop solar sector is projected to reach approximately 100GW by FY30. While the primary capacity targets are often cited in rounded gigawatt figures, the company’s specific production objectives for the 2028 horizon reflect a significant scale-up across its core verticals.

Ratlam Facility Capacity Targets (Post-Expansion)

Lithium-Ion Production and Technical Expertise

A central component of the Ratlam expansion is the technological shift from traditional tubular batteries to lithium-ion (Li-ion) solutions. UTLSOLAR plans to scale its Li-ion capacity from 45 MWh in FY25 to 2.5 GWh by 1QFY27. While this capacity will be established upfront, management indicates that utilization will ramp up in stages according to market demand.

The transition is supported by the company’s internal expertise in power electronics, which includes the development of single-card surface mount technology (SMT) inverters and patented rMPPT (Maximum Power Point Tracking) technology. The shift toward Li-ion is driven by three identified technical advantages:

• Longer life: Increased cycle durability compared to lead-acid alternatives.
• Lower maintenance: Minimal operational requirements over the product’s lifespan.
• Superior long-term cost efficiency: Enhanced economic viability for integrated solar-storage users.

Strategic Backward Integration

To secure its supply chain and meet government eligibility requirements, UTLSOLAR commissioned a 1GW Domestic Content Requirement (DCR) solar cell manufacturing facility in Dadri, Uttar Pradesh, in January 2026. Solar cells represent approximately 50% of total panel manufacturing costs, and this backward integration is expected to lift gross margins to approximately 51%, compared to the 23-27% margins typically associated with outsourced DCR cells.

In-house production is essential for compliance with the PMSGMBY scheme, which mandates the use of DCR-compliant materials for residential installations. The manufacturing process for these cells relies on a raw material structure primarily composed of silicon wafers and silver (Ag) paste. The company anticipates adding another 2GW of capacity to achieve full backward integration in solar panels.

Corporate Context and Distribution Strategy

Fujiyama Power Systems (UTLSOLAR) operates as an integrated B2C player with a manufacturing footprint that now includes Parwanoo, Greater Noida, Bawal, and Dadri. To drive market penetration, the company employs a “Twin-Brand Strategy” utilizing both the UTLSOLAR and Fujiyama Solar brands. This mechanism allows the company to appoint two distributors in the same city, increasing channel density and brand visibility without causing channel conflict.

The efficacy of this distribution model is evidenced by recent growth; the company’s distributor base expanded 65% in a single year, growing from 482 distributors in September 2024 to 800 by September 2025. As of late 2025, the company maintains a network of approximately 7,500 channel partners and 65 service engineers.

The Ratlam project solidifies UTLSOLAR’s transition toward an integrated manufacturing model capable of providing end-to-end solar-storage solutions. By aligning its production capacity with the DCR requirements of the residential PMSGMBY scheme and scaling its Li-ion capabilities, the company is positioned to address the 7.1 million untapped installations currently identified in the national residential solar target.

Official Sources & References

• Fujiyama Power Systems (UTL Solar) — Official Corporate Portals:
  • UTL Solar Official Website
  • Fujiyama Solar Product Portal