Fujiyama Power Systems has announced plans to establish a 1.2 GW TopCon solar cell manufacturing facility at its Ratlam plant in Madhya Pradesh with an investment of ₹350 crore.

The project, approved by the company’s board, forms part of Fujiyama’s broader strategy to strengthen backward integration, enhance technological capabilities, and expand its presence in India’s rapidly growing on-grid rooftop solar market.

The proposed facility will manufacture advanced Tunnel Oxide Passivated Contact (TopCon) solar cells and is expected to become operational during the first quarter of FY28. According to the company, the expansion will support timely availability of Domestic Content Requirement (DCR)-compliant solar cells, reduce dependence on external sourcing, minimise cost volatility, and improve operational margins.

The investment comes at a time when the implementation of ALMM-II for solar photovoltaic cells is scheduled to take effect from June 1, 2026. Industry experts believe the policy is likely to significantly boost domestic demand for locally manufactured solar cells and modules.

Pawan Kumar Garg said the company’s inclusion in the Ministry of New and Renewable Energy’s ALMM-II approved list places it in a strong position to cater to increasing rooftop solar demand across India.

He added that the new facility would support projects under the Pradhan Mantri Surya Ghar Muft Bijli Yojana, which is accelerating residential rooftop solar adoption through subsidies and policy support.

The company plans to finance the project through a combination of debt and internal accruals.

Industry observers note that the investment reflects the growing focus among Indian solar manufacturers on domestic supply chain development, technology upgrades, and localisation as India seeks to strengthen energy security and reduce reliance on imported solar components.

The expansion is also expected to support the broader growth of India’s rooftop solar ecosystem by improving access to compliant and domestically manufactured solar products.