Jakson stays evergreen
Jakson group is pushing its ‘early bird’ advantage to the fullest extent and hopes to gain a significant position in the energy and infra segment in the coming years. Given that India’s energy needs are growing because of the transition to renewable and clean energy, Jakson has expanded its business verticals. The company reflects a mindset of being innovative, backed by investment in research and service.
Jakson group has evolved into a prominent player in its legacy diesel generator business, while also diversifying into new areas. Today, it has robust portfolios in five business verticals -- distributed energy, solar modules & cells, infrastructure & EPC, green energy & renewables and the recently entered bio-fuels. “After the Covid scare, we prepared ourselves for the future and got in sync with the country’s vision of being self-reliant, as far the energy sector is concerned,” explains Sameer Gupta, 58, chairman & managing director, Jakson group.
This closely-held group based in Noida is one of the country’s key players in the energy and infra segment today and has achieved an annual turnover of Rs8,000 crore, while having an order book of Rs15,000 crore at present. The debt-free company has had a CAGR close to 27 per cent for the last five years and is employing 3,500-odd people.
Gupta and his brother Sundeep Gupta, 57, vice-chairman & MD, have carefully built a strong diverse business portfolio in energy and infrastructure spectrum over the years. Now, the fourth generation of the family has been given charge of the company’s day-to-day operations. Sameer’s elder son Raghav, 32, is MD, Jakson Infra Business, while his younger son Siddhant, 30, is spearheading biofuels, as a director. Sundeep’s elder son Bharat, 30, is director, solar modules & cell business, while the younger son Kunal, 27, has just joined the business and is into infra space.
In line with the government's vision for energy security, last year, the Jakson group had forayed into the biofuel segment and commissioned a state-of-the-art project for making ethanol at Balaghat, Madhya Pradesh. This greenfield plant was commissioned last year at an investment of Rs250 crore. Spread across 43 acres, this zero-liquid-discharge plant has a capacity to produce 150 kl ethanol per day, which makes it one of the most advanced grain-based distilleries in the region.
The plant, strategically located in the heart of central India’s rice bowl, benefits from abundant, cost-effective supply of maize and rice. It also has a 4.5 MW captive power plant, which is run using coal and rice husk. The entire ethanol produced is contracted to major oil companies, such as IOC, HPCL and BPCL.
Ethanol is now the buzzword in sustainability and green energy; and the government has set a target to have 20 per cent ethanol blending in petrol by 2025. “We entered the ethanol business, realising the government’s strong emphasis on ethanol-blending for clean fuel,” says Siddhant. “So, we thought it is a good opportunity to enter the segment and create a sustainable business”.
The road map for the company is to set up a 200 kl extra neutral alcohol (ENA) plant in the same premises by 2027, at a capex of Rs300 crore. “ENA is used as raw material for any kind of spirit,” informs Siddhant. “We plan to tie up with large liquor brand manufacturers. And once we are sure about our quality, we will also go for bottling units and set up our own brands and get into segments like IMFL or domestic liquor. Currently, we are waiting for environment clearance for our ENA plant, which may take 6-9 months”. The management is also looking at opportunities to expand the ethanol production capacity, by setting up another 225-klpd plant on the same premises.
The Jakson story is a perfect example for aspiring entrepreneurs. Jaikishan Gupta, father of the company’s present chairman emeritus Satish Kumar Gupta was working with Multan Electric Supply in Lahore, where he later had set up an electrical trading business in 1945. He moved to India with his wife and children five days before Independence in 1947. He then restarted his electrical shop in Delhi’s Kamala market in 1947, selling electric motors, pump sets and associated switchgear. By the late 1960s, his younger son Satish, now 89, had joined him and was instrumental in growing the business into a large distributorship for leading multinational brands like L&T, Siemens and the then Kirloskar-Cummins.
Jakson also started a small generator set making unit in Delhi, anticipating power shortage, because of the growth in agriculture and industries in the country. They started assembling Jakson brand gensets and sold 60 sets from that unit. The initiative had not gone unnoticed. The product quality of Jakson was good and the Kirloskars, which was in partnership with Cummins till 1987, picked Jakson as one of its 24 OEM manufacturers in 1982. Later, Jakson upgraded the manufacturing facility to a capacity of 100 gensets in 1985. In 1990, Satish Gupta’s sons Sameer and Sundeep joined the business as trainees and learned the nitty-gritties of the business the hard way. They often spent nights on the shop floor or at the customer’s site. Gradually, their relationship with Cummins strengthened over decades and Jakson became one of the three GOEM (generator original equipment manufacturer) of Cummins India.
The manufacturing facility had given the Guptas a competitive edge over other genset-makers, as most of them assembled the sets on the customers’ premises. As competition increased, Jakson slowly moved up the assembly chain to make control panels, switchgear, acoustic encloses for generator sets. This backward integration and engineering experience made Jakson a customers’ favourite.
Sameer is an electrical engineer while Sundeep is a computer engineer. Both were instrumental in growing the business at a blistering pace. Jakson was the first to bring in the concept of silent generator in the organised sector of the country. The company realised that noise pollution would be a major issue in future and, hence, decided to work on that and set up a small section to make silent generator sets in 1998 in Noida, building up competency in manufacturing steel and insulation acoustic enclosures for noise proof.
In 2003, the Central Pollution Control Board made silent generators mandatory. “The notification helped our company to go for immediate production, since we already had the infrastructure in place. The rule was a game-changer in genset business and impacted profit margin up to 30 per cent”, recalls Sameer. Similarly, with its expert engineering skill, the company was the first to launch ‘ready to use’ (RTU) genset in the country for plug-and-play operation, which can now be found everywhere.
Jakson sources the engines and alternators from Cummins and co-brands the products as Cummins-Jakson. Today, it produces a wide range of DG sets -- from 7.5 kVA to 3,750 kVA -- to suit the requirements for various applications spanning usage in homes, housing units, commercial establishments, industrial units, automobile, IT & ITeS, data centre, healthcare, as well as hospitality. From just 100 units in the late 1980s, the company has moved up to a capacity to produce 15,000 generators and enjoys 50,000-70,000 loyal customers.
“Jakson continues to be a long-standing strategic partner to Cummins in our journey to power India’s sustainable progress,” says Shveta Arya, MD, Cummins India. “This collaboration is key, as we lead our industry into the next era of smarter, cleaner power, unlocking new opportunities with our ‘destination zero’ strategy”.
Jakson has two genset manufacturing facilities – one, at Kalsar, Gujarat, and, the other, at Phalton, Maharastra. Phalton is the latest facility of Jakson, commissioned in 2023 at an investment of Rs50 crore. It is one of the modern plants in the industry, with advance technology for consistent quality with a capacity to produce 2,500 units of diesel gensets, ranging from 250 kVA to 2,500 kVA. It also has a rated capacity of 2,000 enclosures annually.
The seven-acre Jakson plant in Phalton is close to the Cummins engine manufacturing facilities gives the company an additional advantage in logistics, as Jakson gets engine and alternator from Cummins for gensets. The USP of the plant is its testing facility. “It is the largest and rare in the industry,” says Sundeep. “Its micro-processer-controlled testing facility can test up to 3 MW generators”.
“The gensets we are making today is greener and cleaner than the ambient air, thanks to the CPCB mandate,” claims Sameer. “The AQI (Air Quality Index) of the genset exhaust is even cleaner, compared to most of the cities in the country”.
Genset-making is the mainstay of the group which, under the distributed energy business, achieved revenues of Rs2,000 crore, growing at 9-10 per cent, as against the industry growth of 5-6 per cent. “The overall usage of genset has come down due to improved power situation but the demand for equipment has not declined. You need to have a stand-by genset for every infrastructure, hospitals, datacentres, construction sites and road construction, as an emergency power available to you. It is like an insurance policy,” he describes.
The distributed energy also offers solar rooftop, diesel power plants, parts distribution and services, hybrid energy system, battery energy storage systems and energy solution for defence applications. Jakson possesses years of expertise and in-house engineering capabilities to build rooftop solar power plants of all sizes, including Ram Mandir at Ayodhya, several airports, Indian Railways' coaches and Metro Rail.
Riding on the emergent demand and the government’s push for solar industry, Jakson is now ready to expand its solar module business. And, for the first time, the company plans to enter solar cell manufacturing. Currently, it has a capacity to produce 1.2 GW of PV modules at its automated plant in Noida. This advanced facility specialises in half-cut-cell PV modules, utilising both P-type and N-type top con-cells. Automated operations ensure precision and efficiency, while adhering to the latest ISO standards for quality and safety.
“We always adopted the changing market scenario and invested in capacity expansion and value addition,” affirms Sundeep. “The new integrated facility coming up in Madhya Pradesh will have 3 GW of solar cells and 2 GW of module capacity. It takes an investment of over Rs2,000 crore in the first phase. The units would be commissioned in the next one-and-a-half years.” With this expansion, the module capacity will become 3.2 GW. The new project will come up on 100 acres of land. For the first time, Jakson is foraying into solar cell manufacturing. The investment will be made through internal accruals and bank funding. By significantly ramping up its manufacturing capabilities, Jakson aims to serve better to its growing customer base.
“We are entering the solar cell manufacturing business because the government has come out with a regulation that, after June 2026, it is mandatory that all domestic module manufacturers have to use Indian made solar cell only,” says Bharat. “The move is to curb import from China. This has boosted the industry. Eventually, we will also get into wafer and ingot manufacturing too”. In future, it can also get into other materials like glass and aluminium for module manufacturing, when volume grows. It is big business too, adds Bharat. He is also looking at the export market for solar panels.
However, some experts argue that the MNRE’s mandate on solar cell could cause a consolidation. Small players will be affected, as they either have to set up cell capacity or compete for the share from the government-identified companies, which potentially will favour large players.
Present demand for solar cells is 40 GW per annum, whereas the country’s current installed solar capacity is about 110 GW. The government’s projection is to add about 40 GW a year for the next 10 years to reach 500 GW.
Jakson Green is a new energy transition platform, formed in 2022. The company focusses on EPC, IPP, IHP and O&M of new energy assets spanning solar, utility scale energy storage, waste to energy, fuel cell technologies, green hydrogen and green ammonia projects. This venture shows the group’s increasing focus on sustainable growth in the renewable energy sector.
Bikesh Ogra, MD, Jakson Green, and Kannan Krishnan, joint MD, carry over 26 years of experience in energy and infra segment and have served in Sterling & Wilson Solar. They joined the business as partners and hold a total of 30 per cent share of the company. Headquartered in India, Jakson Green operates across Europe, MENA, CIS and Africa. “We have achieved a turnover of Rs3,800 crore, which is expected to go up significantly in the current year, as we have an order book of Rs10,000 crore. Also, today, we have an EPC portfolio of 8 GW solar projects, says Bikesh.
The major EPC projects of Jakson Green include Nur Bukhara Solar PV from Masdar at Uzbekistan; 290 MWp solar and 150 MWhr battery storage and substation; solar PV project from Jinko Power in Saudi Arabia; 450MWp Solar plus substation, Solar Project from ACWA Power in Saudi Arabia;108 MWp Solar, NTPC Nokh in India, 306MWp and Solar Statkraft Mihir Solar PV Project in India.
Jakson Green has also partnered with Blueleaf Energy, a pan-Asian renewable energy platform, owned by a Macquarie Asset Management-managed fund, which has announced a strategic partnership with a 1-gigawatt (GW) solar portfolio in Rajasthan, at an investment of $400 million. The partnership will focus on jointly developing and building gigawatt-scale green energy projects in India. "The sheer scale of this project is a testimony to our commitment to delivering world-class projects, while being the most trusted energy transition partner,” Bikesh explains.
The 1 GW portfolio comprises of three solar projects. These projects include Intra State Transmission System and Inter State Transmission System projects with 25-year power purchase agreements (PPAs) secured via competitive bidding from RUVNL, SECI, and NHPC. The three solar projects are expected to be commissioned in 2025-2026.
“Blueleaf’s development and commercial capabilities combined with Jakson Green’s project execution strength creates a strong partnership for delivering high-quality renewable energy projects, propelling us towards our shared goal of adding in excess of 5 GW of renewable energy capacity to the Indian grid by 2030, to accelerate the nation’s journey to net zero,” remarked Raghuram Natarajan, CEO, Blueleaf Energy.
Similarly, Jakson Green Renewables, the asset management arm of Jakson Green, has secured 1 GWp Operation & Maintenance (O&M) project. With these latest additions, Jakson Green’s total O&M portfolio now stands at a total of 5 GWp, reinforcing its leadership in the renewable energy sector.
These projects comprise four high-capacity solar projects, ranging from 75 MWp to 435 MWp, strategically located across Rajasthan, Chhattisgarh and Tamil Nadu. “With a portfolio now at 5 GWp, we are well-positioned to drive sustainable energy solutions across India and beyond. Our focus remains on delivering superior operational performance and maximising returns for our clients,” says Kannan. “Jakson is strong in electrical engineering but in solar manufacturing they need emphasis more on skilled manpower,” adds a veteran in solar industry, who commented off the record.
Jakson Infra started as an electrical distribution company 10 years ago. Now diversified into five domains starting from Power Transmission and substation, Power distribution, water infrastructure, civil infrastructure and metro electrification. It is a leading provider of turnkey solutions across sectors, offering a suite of services including design, engineering, procurement and project management. Specialising in power transmission and substation projects up to 400kv. The skilled team delivers complex projects with quality, serving both Indian and international utilities.
The company plays a pivotal role in urban and rural electrification partnering government bodies ensure electricity reaches every household. The expertise in electrical and mechanical works includes managing metro projects in major cities like Bengaluru, Mumbai, Kolkata, Delhi and Kochi, covering multi-disciplinary activities, such as traction substations, electrical system, HVAC and fire-fighting, among others.
“Today, we have Rs900 crore order book, going up from Rs400 crore. Now our focus is to do higher value engineering jobs with our engineering skills and cost optimisation,” says Raghav. Today, the company has an open order book of Rs5,000 crore, split into about Rs1,500 crore in distribution, Rs1,000 crore in transmission, Rs1,000 crore in civil and water works and another Rs1,500 crore from metro railways. They are all government projects.
Some of the important projects the company is executing are Prayagraj Project for Purvanchal Vidyut Vitaran Nigam (valuation: Rs600 crore), Jal Jeevan Mission in Uttar Pradesh (value: Rs1,400 crore), Nandurbar Hospital project, Maharashtra (value: Rs600 crore) and the first international project in Rwanda for Rs86 crore.
“The Jakson group demonstrates a strong growth mindset and is making significant strategic investments in the energy and infrastructure sectors, backed by a committed and capable leadership team,” says Guilherme Mendonca, MD & CEO, Siemens Energy India.
“We have moved up the business through efficiency, capacity enhancement, and a great deal of emphasis on the customers need,” says Bahadur Sam Dastoor, executive director & group CEO. The group has set a target to achieve a turnover of Rs15,000 crore in the next three years. “Depending on the growth, we may need some investments but in which form we do not know yet,” says Sameer, when asked about the IPO.
Four generations’ careful crafting has resulted in the Jakson group’s success. It is now interesting to see how the company seeks new avenues efficiently with top-down focus and takes the business to the next level.