Redefines solar potential
Shyamal Chatterjee is building an integrated solar conglomerate and changing the industry dynamics to create space for profitable investments in the power sector while contributing to the treaty on climate change.
The glass façade of Maxx Pride at Beltarodi, Nagpur, overlooking the east where the office of Galaxy Solar Pvt Ltd is situated, makes summer mornings extremely hot on the office veranda. Everyone wants to live away from the blistering sun that makes solar power, the fast-growing electric power source. But Shyamal Chatterjee wants his project sites to have plenty of sun rays and convert them into power to power our urban and rural homes, offices, industrial complexes, farmlands and streets. In the great mission lies an abundant business that will have no recession.
Shyamal Chatterjee is busy with his morning engagement with staff. Phone calls do not stop. Yet he carries no sign of strain: the self-made entrepreneur, the 44-year-old Shyamal beams at his litmus tests since his engineering college days. “I was looking for a scalable business where there could be plenty of new opportunities for sustainable growth,” he recalls while dwelling on how he managed to find his pocket money and meet living expenses in Nagpur where he moved in for his engineering study. Hailing from a well-to-do family of public servants, Shyamal could have focussed only on learning, not earning. “But business has always been a passion and I have understood that it wouldn’t be as easy as making a livelihood through services,” he says.
On the other hand, the door of vast opportunities is kept wide open. That was not everyone’s cup of tea. It was fit in the hands of ace entrepreneurs like Shyamal Chatterjee, a mechanical engineer and self-disciplined technocrat. Energy from nature calls for cutting-edge engineering skills, the government’s policy support and missionary zeal among all involved in the business. Inside the second-floor office of Galaxy Solar, it is cool, dust-free and immaculate. Workers remain focused on their duties and engineers work on computer-aided designs. Shyamal Chatterjee, the company’s promoter, heavily invested his money, time, knowledge and talent. He combines his entrepreneurial acumen with his risk-bearing ability, engineering talent, policy encouragement, India’s solar power generating potential, the need for a stable energy source to support the growing economy and climate necessities.
As the economy grows power consumption also rises. Conventional sources hold potential climate risks and contribute to global warming, which has already crossed all limits due to greenhouse gas emissions. The camphor aroma inside the office stirs visitors’ confidence in him as an ace solar power entrepreneur with innovative ideas to make the industry worth large-scale investment and consistently profitable growth. Galaxy is redefining solar business dynamics and reengineering the commercial dimension of a potential segment that was moving slowly until 2016. Now the changes are visible on the surface.
What was a tiny cubicle seven years ago has now become an office big enough to call a corporate office. That marks the scale of his business growth and his confidence indicates his discovery of a broader space for an entrepreneur like him who always thinks of making new things and doing things differently. The seven years of Galaxy reflect it. “When I entered the solar business seven years ago, I did not feel as much scope for growth in the segment, maybe due to our conventional approach to this non-conventional power sector. Perhaps, a person like the General Manager at Coal India, who first advised me to explore possibilities in the solar segment, might have understood the scope and space within the industry that unquestionably required a dynamic change,” he avers. Until 2016, solar energy as a renewable resource did not receive significant attention, resulting in insufficient investments for business expansion, innovation, and research and development (R&D). However, the segment has the potential to generate 5,000 trillion kWh per year of energy in India, perhaps even more with new technologies and modules. The National Institute of Solar Energy (NISE) assessed the country’s solar potential of about 748 GW and assumed that solar PV modules would cover three per cent of the wasteland area.
Shyamal was taken aback by two significant events: the sudden withdrawal of two high-value currencies in November 2016 and the implementation of GST in July 2017. He recalled the advice of Majumdar. The two hits, however, cleaned up the economy of the cash hoarding practice and brought in a nationally uniform indirect tax. These monetary and taxation measures tested the resilience and susceptibility of small businesses, especially those run informally. Shyamal found it hard to douse the fiery passion of entrepreneurship. Where to take the next plunge was the question he grappled with to find an answer. Though days ahead were for green energy, the potential of solar photovoltaic power was taken lightly, even when India required energy to support economic growth and satisfy the growing needs of people, especially in the days of their financial well-being. The legacy of poor growth in the infrastructure sector until the middle of the last decade, especially in the energy sector posed multiple challenges.
Began with a small hope, a big challenge in his hands and determination to make an imprint in whatever he does, he decided to enter solar power as Majumdar suggested. That was the right time for a brilliant engineer like him to venture into a segment, at the nascent stage, but with unlimited potential. The year was 2016-17. India then had an installed solar power capacity of 9.01 GW, around 1.4 million solar home lamps and nearly half a million solar-panelled street lights. Things have changed soon. Then 34 solar parks were to generate 20 GW of power. The segment grew rapidly in the last seven years. The impact of solar energy on India’s energy landscape has been significant, as acknowledged by the government and affirmed by industry experts.
Solar energy’s decentralised and distributed models have benefited millions of people in villages. It carried inexplicable socioeconomic benefits. It drastically reduced rural drudgeries and generated employment in small towns and villages. While being instrumental in improving the standard of living it created livelihood opportunities. Naturally, for an entrepreneur like Shyamal Chatterjee with a big philanthropic mind reaching the solar business was the call of nature.
However, that was the time people heard about solar power, many people were not convinced about its advantages and economic viability. Convincing people to build 2kv of power too was a task. That was a challenge for the government, which promoted solar power with liberal investment norms and subsidies. Government subsidy was a turning point for the industry, he agrees. The government is still promoting the solar industry to achieve scalability on one side and captive generation through rooftop installation, on the other hand.
But, if the industry needed scalability and long-term investments, there might be some bigger things to happen. The industry needed a corporate approach from professionally run companies with innovative ideas and technology prowess. Shyamal spotted a big space for him in this gap. The investors’ community looks at scalable models with guaranteed revenue streams, professional management which rightly foresees what ensues for its business growth, and constantly innovating talents. Shyamal found a solid space for Galaxy. Solar stocks command good valuations on the exchanges even in the bear market, indicating investors’ confidence in the scalable models. The segment received foreign direct investment (FDI) of around $4 billion until last year. “Without the government subsidy and open policy and a vision to convert sun rays, the gift of nature, into electricity, it would have taken a longer time to see the rise in the share of solar power in the overall combination of power generation,” he points out. Now he sees a major shift in the equation, thanks to new technologies and the emergence of corporate models. The government maintained a strong policy, and the public began to recognise the importance of generating sustainable green power that is economically viable. Additionally, businesses and industrial complexes acknowledged their responsibility to protect the ozone layer and the environment.
Greenhouse gas emissions have exceeded safe limits, leading to significant changes in weather patterns that threaten humans, animals, plants, and marine life. This situation has raised serious global concerns and serves as a warning about the possibility of making the Earth uninhabitable if carbon emissions are not reduced. That can be achieved only if solar power contributes substantially more. Shyamal Chatterjee acknowledges that our lawmakers’ commendable approach could make solar power generation a scalable business model. “For no other reason than this, today our country is a leader in solar power. We have begun to build sizeable solar power projects and contribute to cutting pollution. We have come a long way from focusing merely on making solar lamps and geysers to megawatt and gigawatt-size solar farms. Industrial complexes are installing solar power generating systems thereby creating a power-generating asset within,” he adds. Things have changed now. An individual like an organisation can generate power according to their requirements and consume it without the distribution company’s tariff worries. More solar parks are coming up. Durable models require long-term technical support for guaranteed performance and maintaining efficiency. Galaxy finds its position in the maintenance service requirement, after execution of projects, like every running machine.
Shyamal got his first big opportunity when a senior official from the Tribal Department of the Union government contacted him on behalf of Nitin Gadkari, the Union Minister for Road Transport and Highways. Nitin Gadkari wanted to meet with him to discuss a project for installing a floating solar system at his sugar factory. He wanted to supply drinking water to nearby tribal villages using lift irrigation. Known for his practical approach, professional culture and dedication to his work, Gadkari advised Shyamal to utilise his mechanical engineering knowledge to design an effective solution and prepare a plan according to his requirements. Within four days, Shyamal prepared the project report and successfully presented it to Nitin Gadkari, who approved it instantly. “I had a sigh of relief,” he recalls.
Following the plan approval, the company issued the work order and an upfront payment. That cheered the Galaxy team. “As the company was at the early stage of commercial operations, upfront payment for the 30kv project brought great relief. Since the cost of the project was not so small, an upfront payment enabled us to execute the project on time,” he recalls while revisiting major milestones in his business history. As a minister with a huge clout in industries and polity, he could have got it done at a lower cost by a bigger player. Others would have done it for him to create brand credentials. But Gadkari believed in professionalism and the value of skills, Shyamal says. “For me, that was a big opportunity,” he reminisces. Nitin Gadkari appreciated the project acknowledging it as the first ever such project he could see, and he inaugurated it in the presence of high-profile vendors like Panasonic and Polycab. Highly satisfied with Shyamal’s acumen in the implementation of the solar project, Nitin Gadkari advised him to maintain the spirit of doing such work, whoever may be the customer, with integrity and dexterity to ensure business growth forever. “The appreciation was an inspiration to perform better,” he recollects. His good works kept him growing thereby creating a brand value for himself. Galaxy continued to innovate and explored new ways in the industry.
Before entering the solar power business, Shyamal was engaged in mining consultancy, road and flyover construction, making machinery, etc. One day, Majumdar, a General Manager at Coal India told him that an engineer like him with talent and dedication should not stick to consultancy or contract work alone. That would not create long-term value. But he was afraid of burning his fingers on new technologies and business. In the days we used to see only solar street lamps the advice of Majumdar did not fall on his ear so well. Though solar was an interesting topic, the industry was not running from a business perspective. However, Majumdar asked him to think of a bigger size and go to Suzlon to study more about renewable power generation. That was the time executives from Suzlon moved out to set up solar companies. As Majumdar advised him, he went to Suzlon for seven days to study the new area of renewable power generation. “I could learn many things from it; the most important among them was the lack of service culture in the solar industry. The legacy had a scope for correction,” he recalls. Initially, people thought solar was a short-term business proposition with a thin margin. The contractors’ responsibility was over once the contract work was done. “In the solar business, there was no after-sales service. At the same time, there are guarantee clauses on the panel and other products we supply and install. Our agreement with the government and private customers is for 25 years. Without regular servicing, no one can assure the longevity and efficiency of running assets. Many people still do not know that solar photovoltaic system requires a lot of services for 25-year-long efficient functioning. Its batteries need timely services. “What we do now is through the battery system but grid-connected. Connecting with a battery would be the next big thing happening in India. Galaxy Solar is preparing to take a position in this gap with everything ready at its disposal to meet the requirements.
Seven years down the line Galaxy’s business is doing a roaring business as the order book is swelling. There is no dearth of opportunities, Shyamal feels as he moves from city to city, discusses with executive after executive and meets with person after person. “We need to look at how we can harness the opportunities and build a sustainable revenue stream by deploying our skills with integrity and vision,” says Shyamal, the first-generation entrepreneur known for his policy of long-term relationships with his business customers and channel partners.
Currently, the company has an order book position worth ₹2000 crore, which includes Mukhyamantri Saur Krishi Vahini Yojana of Maharashtra and various other small commercial park projects with an aggregate capacity of 500 MW across the state. This unique project will help many small players flourish in the solar power business. Shyamal expects execution of around 30 per cent of the current order book by the middle of the next financial year. Within 18 months the company will complete the execution of the orders currently in hand. Along with it, Galaxy, which already is aiming for a full-fledged pan-India presence, is also planning to enter new geographies based on the potential available.
Galaxy has started building premium projects with a guarantee of longevity, efficiency and reliability – a value for money to the customers. Shyamal wants people to deal with Galaxy as a premium brand in services and products. A satisfied customer generates more customers. That is the reason Galaxy’s customer-referral rate is very high, he points out. “Customer satisfaction encourages the Galaxy team to do more, innovate the service and product models and enter new territories. The company is moving into making itself an integrated solar power company with forward and backward integration,” he says. It is investing in commercial assets like building solar parks and has finalised a 15-MW solar park with its investment. It is acquiring technical know-how to manufacture solar photovoltaic panels, modules and batteries. Galaxy has an array of top-ranking corporate clients. At present, it has 2200 customers. Ambuja, Ultratech, Himami, Godrej, Titagarh Railway, Toyota etc. are some on the long list. “Our services and systems are running well owing to our commitments and material sourcing from the best in the industry,” says Shyamal. “We always choose the best manufacturers in the industry so that our customers get the best value for money. Galaxy chooses Panasonic for panels, Polycab for inverters and cables,” he adds.
As our business volume increased, we reduced our cost of service and passed the benefits of the volume that we acquired to the customers by way of cost rationalisation. It follows the general industry metrics of economy of scale and operational efficiency. Shyamal follows the Japanese business philosophy of making premium quality products without being concerned about initial costs. A quality product with a long life is good economics. Shyamal knows the art of survival and the importance of building sustainable business models unlike many so-called solar companies, which were mere contract executors. Their business was saturated over a period, though solar power could thrive in the change of times which necessitated sustainable energy development.
With the speed Galaxy grows its office space also grows and more engineers work on computer-aided engineering designs. Multiple reasons created bigger opportunities. Under the Paris Climate Accord, every signatory like India needs to reduce carbon emissions by 30-35 per cent by 2023 to achieve the Sustainable Development Goals of the United Nations. India’s compulsion under the Paris Climate Accord to engage in a consistent reduction in greenhouse gas emissions was one reason that assured the growth of solar power as a viable renewable power model. India can achieve the emission target only by reducing dependence on fossil fuel-fired power generation. That naturally necessitated solar power’s contribution to the overall combination of power. While considering the green energy alternatives, cost efficiency and sustainability remained important factors. When India targets carbon neutrality by 2070 solar power will be the viable alternate energy source for lower greenhouse gas emissions.
The National Solar Mission (NSM) is a key component of India’s National Action Plan on Climate Change, which prioritises renewable energy development. Solar power instils greater confidence. To achieve carbon neutrality by 2030, India aims to install 500 GW of renewable energy, with solar energy expected to contribute half of this target. This translates to a need for 250 GW from solar sources, presenting significant opportunities for servicing the assets that generate this power. Galaxy recognizes these opportunities and sees growth potential both vertically and horizontally. Shyamal has made substantial investments in capital, time, and talent as he guides his team toward the next goal for Galaxy, keeping a keen eye on the sunrise in the east and sunset in the west, while strategically positioning themselves at the heart of India’s mission.
Shyamal Chatterjee visited 25 locations in India to establish offices as part of his network expansion plan. He ensures that each office operates professionally and adheres strictly to business ethics, as well as customer care. For Shyamal, “Galaxy” signifies delivering value for money to its customers and maintaining a brand reputation that continually generates business.
In addition to executing large-scale solar projects, Galaxy provides project management and consultancy services. The company collaborates closely with numerous corporate clients, fostering long-term relationships that establish a reliable revenue model. This helps Galaxy deliver innovative services and specific project models each customer needs.
While working on the current order book position worth around ₹2000 crore, the company expects confirmation of new orders to take its futuristic position at a substantially higher level. New orders are at an advanced stage of negotiation with large Indian entities and multinationals.
Shyamal Chatterjee believes in taking calculated risks, first with his own capital and making it a successful business model before inviting others to join the commercial venture. Galaxy Solar Pvt Ltd stands out as an emerging solar power player because of its comprehensive knowledge of the business, a strong grasp of its in-house talents, and an exceptional ability to demonstrate resilience in every situation.
Galaxy Solar has strategically positioned itself in an emerging industry that is currently in its nascent stages, setting the foundation for long-term growth. The company has now entered a growth phase, bringing its vision of building a scalable business to life. It recognises a significant opportunity as India receives an annual energy influx of 5,000 trillion kWh, with most regions able to generate between 4 to 7 kWh per square meter daily from sunlight.
Business is a thought process where you must have a transparent approach. An entrepreneur’s idea should be prudent and evolving. When you don’t have business inheritance and parental support with capital, you must work extra time and look at challenges optimistically. Then you can absorb the market shocks and aberrations in the industry.
Shyamal Chatterjee
Founder & Managing Director
