Corporate Reports

Published: Dec 29, 2021
Updated: Dec 29, 2021

Byword for rooftop solar systems - Zodiac Energy

Aptly named Zodiac, this quarter-centuryold company is today a byword for rooftop solar systems, primarily in Gujarat but also across the country. By now, the NSE-listed company has installed more than 65,000 KW of rooftop and ground-mounted solar systems across country. The company owes its success not only to its visionary first-gen promoter Kunjbihari Shah but also to Mrs. Parul Shah, the driving force behind the residential rooftop solar power division. The figures say it all -- sales turnover has zoomed from Rs 9.19 crore in fiscal 2016 to Rs 68.18 crore in fiscal 2020, and net profit has correspondingly skyrocketed from Rs 11 lakh to Rs 3 crore during this period. Even Covid has not been able to slow its progress -- sales turnover was Rs 44 crore in H1FY21 compared to Rs 27.28 crore in the corresponding half-time last year. Dreaming big, Mr Shah expects a bumper sales turnover of Rs 250 crore for fiscal 2023.

There could be few names more appropriate for a solar energy provider than 'Zodiac'. And since the entire globe, including India, is slowly but surely transitioning to solar power - so far the cleanest and greenest known form of energy - it is completely fitting that Zodiac Energy Limited is the pole player in rooftop solar systems in the country.

Promoted in 1992 by first-gen entrepreneur Kunjbihari Shah - a far-sighted talented and engineer who rode the crest of the new solar energy wave before most others - the Gujarat-based company has gone from strength to strength during the last quarter-century and is today the country's numero uno installer of residential rooftop solar systems. The company's future prospects are virtually limitless, considering how solar power is catching on worldwide. And it is well-positioned to capitalize on these opportunities -- and even establish itself as a global brand -- on the solid foundation of a focused board of directors, a highly capable and technology-savvy management team, and technically proficient core management staff

BUSINESS WINGS

After his engineering degree, Kunjbihari Shah worked as an application engineer with Kirloskar Diesel Engine for two years. But working for someone else was not his 'thing' and he craved to chart his own path. In 1992, when then Finance Minister Dr Manmohan Singh took the epochal decision of opening up the economy, effectively ending the pernicious license-permit-quota regime, the young man grabbed to the opportunity to turn entrepreneur and set up Zodiac, his initial objective being to manufacture diesel Generators.

Moving with the times, he entered the solar energy space and put it on a firm footing by obtaining an ISO 14000 certification and going public with a listing on the National Stock Exchange. Today, Zodiac is a household name as a solar EPC player not only in Gujarat but throughout the country. By now, it has installed more than 65,000 KW of rooftop solar power systems as well as ground-mounted solar power systems across the country. Little wonder then that the company has emerged as the number one EPC player in the recently concluded residential rooftop drive by GUVNL comprising more than 480 empaneled agencies, with an aggregate capacity of 11.8 MW -- the highest capacity by any company in the scheme. An ambitious Mr Shah is now striving to replicate his Gujarat success on an all-India level and retain the company's numero uno position in the domestic residential rooftop solar power market.

LADY POWER

According to Mrs Parul Shah, the highly intelligent and hard-working executive director of the company who is in charge of the residential rooftop solar division and is the main driving force behind the rapid progress of the division, "By now, Zodiac has become the number one company in India as far as residential rooftop projects are concerned, with aggregate capacity of 20-plus MW and 5,000 plus clients. Interestingly the aggregate capacity of some of the states in India has not reached this 20 MW level in the residential rooftop segment." Acknowledging her stewardship, Mr Kunj Shah says, "With this achievement, Mrs Parul Shah has emerged as the pillar on which Zodiac Energy achieved this impressive growth. In fact, she has made solar energy a household name by providing impeccable quality, timely execution and unmatched after-sales service. Needless to say, today Zodiac is the undisputed leader in the residential rooftop solar space in India under her powerful and innovative leadership."

The remarkable progress of the company is well reflected in its financial performance. During the last five years, its sales turnover has zoomed more than seven times - from Rs 9.19 crore in fiscal 2016 to Rs 68.18 crore in fiscal 2020, with the profit at net level spurting by almost 30 times - from Rs 11 lakh to Rs 3 crore during this period, pushing up the EPS (earning per share) from Rs 1.24 to Rs 4.10.

The company has in fact taken the Covid pandemic challenge head on, and has grossed a sales turnover of Rs 44 crore as compared to Rs 27.28 crore in the corresponding half-time last year, with a substantially higher net profit of Rs 118 lakh as compared to Rs 72 lakh in the same period last year. "For the whole of fiscal 2021, we expect sales to cross the Rs 100-crore mark," maintains Mr Kunj Shah.

According to him, the company will be on the growth path going ahead and scaling new highs in revenues and earnings. Zodiac is currently putting up an 80 MW solar power park in North Gujarat to cater to clientele for captive energy as well as sale to DISCOMs solar plants. The company is also a distributor of Adani Solar Panels, ABB Solar Inverters and master distributors of SOFAR Solar Inverters for India. It has introduced "White Solar", a BIPV product in partnership with "Solaxess" of Switzerland, to be used as active facades which can generate electricity. "This product will change the landscape of the Indian construction industry and green buildings," claims Mr Shah.

EV FORAY

Pointing out that "Zodiac Energy has always embraced emerging technologies, be it co-generation, solar energy, building integrated photovoltaics, solar desalination, energy storage or electric vehicles," Mr Kunj Shah adds "Zodiac Energy plans to be in the electric vehicle segment by venturing into its eco system and infrastructure like fast battery chargers, battery packs and drive systems. With the experience of the company in the power electronics sector and energy storage devices, Zodiac is poised to make a mammoth step in the EV market. The company also wants to be in EV rental services for commercial vehicles. All these plans are at the drawing board stage and soon we will announce something for the market."

Viewed in the context of all these ambitious plans, the company is all set to make rapid strides going forward. Maintains Mr Shah "I expect a sales turnover of around Rs 175 crore for fiscal 2022 and Rs 250 crore for fiscal 2023, with a corresponding surge in profits."