Havells India's Solar Gambit: A Strategic Stake in Goldi Solar to Dominate India's Clean Energy Revolution

Havells India, a leader in electrical solutions, has placed a bold bet on India's solar revolution by acquiring an 8.9–9.24% stake in Goldi Solar through a ₹600 crore investment. This strategic partnership marks a pivotal shift for Havells, positioning it as a key player in end-to-end solar solutions. The move aligns with India's ambitious renewable energy targets and leverages Production-Linked Incentive (PLI) schemes to capitalize on domestic demand. However, regulatory approvals and Goldi's upcoming IPO remain critical catalysts for this vision.

Regulatory Approval: The First Hurdle to Solar Dominance

The partnership hinges on securing approval from India's Competition Commission of India (CCI) by June 30, 2025. This clearance is a prerequisite for Havells to claim its board seat and shareholder rights in Goldi. If approved, the deal will unlock synergies between Havells' distribution network and Goldi's manufacturing scale. Investors should monitor this timeline closely: a delay could stall Havells' entry into scalable solar manufacturing, while swift approval could trigger a re-rating of its stock.

Goldi Solar's IPO: A Catalyst for Scaling Ambitions

Goldi Solar, already a 10.7 GW solar module manufacturer, plans to expand to 14.7 GW by July 2025 and establish domestic cell production within 18 months. These moves are foundational to its 2026 IPO, which aims to raise capital for global expansion into U.S. and South American markets. The IPO will validate Goldi's valuation—currently underpinned by a 20x EV/EBITDA multiple—and provide liquidity for early investors, including Havells. A successful IPO could amplify Havells' stake value and signal investor confidence in India's solar boom.

The PLI Play: Government Backing for Domestic Manufacturing

India's PLI scheme for solar manufacturing offers incentives to companies that boost domestic production and reduce reliance on imports. Goldi's backward integration into cell manufacturing and its alignment with PLI goals position it to qualify for subsidies, lowering costs and enhancing competitiveness. Havells' partnership allows it to tap into these incentives without the risk of building its own factories. This synergy is critical as India aims to hit 500 GW of renewable capacity by 2030, with solar accounting for 300 GW.

Why This Partnership Matters for Investors

1. End-to-End Solar Solutions: Havells combines its expertise in electrical infrastructure (inverters, cables) with Goldi's module production, creating a one-stop shop for solar installations. This vertical integration reduces supply chain risks and strengthens margins.
2. Domestic Demand Surge: India's rooftop solar market is growing at 16% CAGR, driven by falling costs and government subsidies. Havells' retail network and Goldi's manufacturing scale can dominate this space.
3. Global Ambitions: Goldi's plans to export to the U.S. and South America open new revenue streams, while its partnership with Saudi Arabia's Desert Technologies hints at broader geopolitical opportunities.

Risks to Consider

• Regulatory Delays: CCI approval is a binary risk. Any holdup could delay Havells' integration into Goldi's operations.
• Margin Pressure: Solar is a capital-intensive sector with volatile polysilicon prices. Goldi's 8–9% EBITDA margins could shrink if input costs rise.
• IPO Valuation Risks: Overvaluation in the IPO could dilute Havells' stake or fail to meet investor expectations.

Investment Thesis

Havells' stake in Goldi Solar is a strategic bet on India's clean energy transition. The partnership combines distribution power with manufacturing scale, leveraging PLI incentives to reduce costs and tap domestic demand. Investors seeking exposure to India's renewable growth should watch two key milestones:
1. June 30, 2025: CCI approval to unlock the deal's potential.
2. 2026 IPO: A valuation test and capital infusion for Goldi's global expansion.

Recommendation: Buy Havells India (HAVELLS.NS) ahead of CCI approval, with a focus on long-term gains from its solar play. Pair this with a watch on Goldi's IPO timeline and margin sustainability. While risks exist, the upside—driven by India's 500 GW target—is compelling for patient investors.

In the race to dominate India's solar landscape, Havells and Goldi are betting big on domestic demand, regulatory tailwinds, and global scale. For investors, this partnership is a front-row seat to one of the world's fastest-growing clean energy markets.