What's Happening?
Inox Clean Energy Ltd, a subsidiary of the INOXGFL Group, has acquired the US assets of Boviet Solar Technology LLC for approximately $750 million. This acquisition marks Inox Clean's strategic entry into the US solar manufacturing market. The deal includes
3 GW of solar module manufacturing capacity and a binding agreement for an additional 3 GW of solar cell manufacturing capacity, expected to be operational by December 2026. Boviet Solar, based in Greenville, North Carolina, is a significant player in the US solar module manufacturing sector. The acquisition allows Inox Clean to benefit from US government incentives under the Section 45X domestic manufacturing program, while also reducing tariff and policy-related risks through localized operations.
Why It's Important?
This acquisition is significant as it represents one of the largest purchases of US renewable energy assets by an Indian company. It strengthens Inox Clean's manufacturing presence in the US, a market with increasing demand for domestically produced solar equipment. The move aligns with Inox Clean's 'Make in America, For America' strategy, enhancing its access to multinational energy customers. The acquisition positions Inox Clean to capitalize on the growing US solar market, driven by rising power demand from AI-led workloads, data centers, and industrial expansion. It also supports the company's goal of building an integrated solar manufacturing ecosystem in the US.
What's Next?
Inox Clean plans to expand its solar manufacturing capacity to 11 GW and operational renewable IPP capacity to 10 GW by FY2028 across India, the US, and Africa. The company projects significant EBITDA growth by FY2027 and FY2028. The acquisition is expected to enhance Inox Clean's competitive edge in the US market, potentially leading to further strategic partnerships and expansions. The company will likely focus on integrating Boviet Solar's operations and leveraging its existing customer base to drive growth.
