Havells bets Rs 600cr on India’s solar boom with Goldi Solar deal—Is this the start of something bigger?

How is Havells expanding into renewable energy through Goldi Solar?

Havells India Limited has taken a decisive step to expand into the renewable energy sector with a strategic ₹600 crore investment in Goldi Solar Private Limited, a leading solar module manufacturer. The investment, formalised through a binding term sheet, represents a minority stake acquisition that aligns with Havells’ broader goal of leveraging the “energy transition” megatrend reshaping the global and Indian power landscape.

Announced on April 14, 2025, the deal is part of Goldi Solar’s wider fundraising plan of up to ₹1,300 crore, expected to close within 75 days. The move positions Havells to strengthen its footprint in solar energy at a time when India is poised for an aggressive push toward clean energy capacity. The long-term strategic implication is a calibrated pivot from its core portfolio of electrical consumer goods toward becoming a more integrated energy solutions provider.

Why is Havells making a strategic shift into solar energy now?

India’s solar sector has reached a critical inflection point, underpinned by supportive government initiatives and rapidly improving unit economics. With projections suggesting that India’s total renewable energy capacity could reach 500 GW by 2030—nearly two-thirds of which is expected to come from solar—companies across industries are recalibrating their strategies to be part of the evolving value chain.

Havells, known for its dominance in fast-moving electrical goods (FMEG), has long been active in the solar ecosystem through the sale of inverters, solar cables, DC switchgears, and modules. However, the company’s growing emphasis on localisation and vertical integration in the face of regulatory changes and supply chain challenges has made it imperative to deepen its manufacturing presence in the solar space. Instead of setting up its own manufacturing facilities from scratch, Havells opted for a partnership with an established player to mitigate risk while ensuring stable sourcing.

The company’s board, after a detailed review, chose Goldi Solar based on its track record, expansion plans, and backward integration into cell manufacturing—a critical component to reduce dependence on imports and ensure module reliability.

What makes Goldi Solar a compelling partner for Havells?

Goldi Solar, a family-owned enterprise led by Ishverbhai Dholakiya, has demonstrated significant scalability and operational strength in the past few years. Originally incorporated in 2011, Goldi began module manufacturing over 14 years ago and has since become a notable player in the domestic solar manufacturing landscape.

Between March 2024 and March 2025, Goldi scaled its module manufacturing capacity from 2.9 GW to 10.7 GW, with further plans to increase capacity by another 4 GW by July 2025. In parallel, the company is developing its domestic solar cell manufacturing capabilities, which are critical for backward integration and cost competitiveness.

Financially, Goldi Solar’s performance has shown momentum. Its FY24 revenue stood at ₹1,757 crore (audited), which nearly doubled to an unaudited ₹3,420 crore in FY25. EBITDA margins for the business remain steady at 8–9%, in line with industry norms, while a robust order book for the first half of FY26 and a visible pipeline for the second half reflect strong demand visibility.

From Havells’ perspective, investing in a fast-growing and vertically integrating player like Goldi provides access to assured module supplies, improved supply chain control, and the potential to build a joint go-to-market strategy targeting both residential and commercial solar customers.

What are the financial terms and regulatory steps in the Havells-Goldi deal?

The binding term sheet outlines a primary capital investment of ₹600 crore from Havells. Depending on the final size of Goldi’s overall capital raise—which ranges from ₹1,050 crore to ₹1,300 crore—Havells is expected to hold between 8.90% and 9.24% equity in Goldi Solar. The investment pegs Goldi’s enterprise valuation at 20 times its unaudited FY25 EBITDA, consistent with prevailing multiples in India’s solar manufacturing sector.

Havells will be granted customary shareholder rights, including a board seat and certain investor reserve matters. These rights will ensure that Havells has strategic oversight without direct operational control, consistent with its minority shareholder position. The transaction remains subject to regulatory approvals, including from the Competition Commission of India (CCI), as well as the fulfilment of customary conditions precedent.

What is the market sentiment and stock performance of Havells?

As of April 11, 2025, shares of Havells India Limited closed at ₹1,532.85, marking a 4.3% uptick from the previous trading day. The stock has demonstrated strong investor interest, supported by the company’s consistent fundamentals and renewed focus on growth sectors like renewables. The current market capitalisation stands at approximately ₹96,041 crore, underpinned by a trailing twelve-month P/E ratio of 75.02—well above the sector average of 22.28.

Havells has delivered a net profit of ₹1,270.76 crore for FY24, while maintaining a low debt-to-equity ratio of 0.0426 and a healthy return on equity (ROE) of 18.10%. This financial resilience, along with a steady dividend yield of 0.65%, reinforces its appeal among long-term investors.

Sentiment from institutional analysts remains broadly positive. The average price target is pegged at ₹1,765.62, suggesting a potential upside of over 15% from current levels. Among 33 covering analysts, 10 have issued a ‘strong buy’, 13 rate it a ‘buy’, 7 recommend ‘hold’, while only a few consider it a ‘sell’. However, user sentiment on retail platforms such as Moneycontrol reflects caution, with a majority currently showing a ‘sell’ outlook.

The valuation may appear stretched for value investors, but the premium reflects market confidence in Havells’ expansion into adjacent verticals. Analysts recommend a ‘Hold’ stance for existing shareholders, while new investors may consider a ‘Buy on Dips’ strategy, especially if the stock corrects in the near term.

How does this align with Havells’ long-term strategic vision?

Havells’ entry into solar manufacturing through a minority stake in Goldi Solar is more than just a diversification move. It signals the company’s intent to play a larger role in India’s energy transition narrative. By participating across the value chain—from electrical appliances and switchgears to solar modules and energy generation—Havells is positioning itself as a vertically integrated energy solutions brand.

The investment leverages Havells’ brand strength and Goldi’s manufacturing capability to tap into residential, commercial, and industrial solar adoption. As regulatory push for renewable energy intensifies and domestic module requirements increase, this alliance gives Havells a supply-side hedge and strategic flexibility.

Over time, this partnership may evolve into a deeper technological and market collaboration, opening doors for integrated product development, co-branded offerings, and perhaps expanded stakes if the venture proves lucrative.