Jakson Group Expects Robust Demand For Diesel Gensets Despite Green Shift

Jakson Group sees demand for diesel gensets, a fossil-fuel guzzler, to continue over the next decade as there are no alternatives at present due to its cost competitiveness as a backup generator. However, the diesel genset manufacturer and original equipment manufacturer is mindful of its sustainability goals and is working on an alternative fuel strategy with its technology partner, Cummins, on hydrogen internal combustion engine for gensets.

It has also technologically improved the engine and exhaust of gensets, touted to be cleaner than the ambient air of some of the metro cities in the country, according to Sameer Gupta, chairperson and managing director of Jakson Group.

"This will bring down pollution to negligible levels and even make the gensets 100% pollution-free in case of green hydrogen. But given the cost competitiveness and lack of infrastructure for hydrogen, the adoption will not happen before 10 years," he told NDTV Profit in an interview.

Sameer Gupta, chairperson and managing director of Jakson Group (Source: LinkedIn)

The company is also investing in several other green businesses, such as module manufacturing, green-hydrogen production through electrolysers, bioethanol and bio-CNG plants, along with participation in round-the-clock renewable power tenders as part of its diversification strategy.

"We anticipate around 12–15% growth for the gensets over the next decade and that's the reason we have invested in a new plant at Phaltan in Maharashtra, taking the annual capacity to 15,000 units from 10,000 units earlier," Gupta said. "The demand is expected to come from infrastructure, construction, rentals and data centres."

India's diesel genset market is expected to grow at a rate of 8.8% between 2022 and 2030 to $1.84 billion from an estimated $937.1 million. The development of the industry is attributed to the need for a reliable and continuous power supply and the upgradations in technology, according to a report by P&S Intelligence.

"However, the Indian diesel genset market might confront obstacles during the forecast period because of push for sustainable power, especially through ventures that aim to curb the usage of fossil fuels," it said.

Jakson's Green Investment Plans:

The genset manufacturer plans to nearly double its solar-panel manufacturing capacity to 2.2 gigawatts in two phases from 1.2 GW at present. "We plan to invest Rs 1,000 crore to increase the capacity by 1 GW almost immediately and are scouting for land. The first-phase investment of Rs 500 crore will happen in FY25," Gupta said.

The company also plans to invest Rs 4,500 crore on 1 GW of solar generation projects in Rajasthan, around Rs 700 crore on 10 bio-CNG plants, Rs 550 crore on two ethanol projects, Rs 100 crore on a 100 MW pilot hydrogen plant, according to Gupta.

The company now aims to participate in hybrid IPPs and is working on wind and battery storage. "We have already executed a few battery storage projects in the Middle East and Africa. The intent is to own assets and not be an EPC player alone in green business," Gupta said.

Financials

The group closed financial year 2024 with a revenue of close to Rs 6,000 crore from Rs 2,900 crore in fiscal 2023 on the back of a strong performance from the green energy business and distributed energy business — diesel gensets and rooftop solar. "We expect the turnover to increase to Rs 8,500 crore to Rs 9,000 crore in FY25," Gupta said.

Also Read: Gadkari Vows To Eliminate Petrol, Diesel Vehicles In India, Bats For Lower Tax For Hybrid Cars

Watch the full interview here