EQ In Exclusive Conversation With Lyren Liu, Vice President – FoxESS
- How much Inverters have you supplied to India till now, what is the target/expectation in 2020-2021
A: Our team have been working in solar inverter sector for 12 years, however, this brand is new to the market, having launched as recently as two months ago. Despite this, our long-term working relationship with partners in India has already resulted in the supply of 5000 units, and we anticipate significant growth in 2020/21.
- Please share your Road Maps – Pricing, Technology etc…
A: We aim to manufacture the most reliable and cost-effective products for our clients. Our R&D team have been working in the inverter & storage sectors for 12 years and we have recently recruited more senior engineers from tier 1 companies, adding further strength to our industry leading R&D department. We have already made significant improvements in the areas of inverter efficiency and lifespan thanks to pioneering design features including a unique cooling system design.
On pricing, our primary focus remains on quality and service. We would prefer to offer superior quality products and a strong local service network than join a price war with our competitors. By remaining in line with competitor pricing, we believe we can supply industry-leading quality and service for no extra cost to the customer.
- What are your views on BIS and other tariff barriers
A: BIS has been pending too long time and finally everyone seems to have it with the price decrease. I remain positive on tariff barriers because the market will always find a way to solve the issue and provide a balance that satisfies all parties.
- What are your views on Inverters – Make in India
A: It will happen in time and we anticipate that India will be a key global base for inverter manufacturing in the long term; but that process will take time, but there are clearly steps forward, and we are delighted to see our partners set up inverter manufacturing facilities in India. But this is a long process, Progressive process in the other words. We are happy to see our partners set up the inverter factory in India. What we are doing now is helping more partners/friends grow up together in India. Only if our partners getting bigger, we can be truly big company.
- Currently 10GW + Solar Projects are in the offing, Whats your plan to Capture this opportunity.
A: We will continue to provide our partners with full support during this period, including promotional offers, as we recognize that this is a big opportunity for everyone and we want to ensure we grasp that opportunity with both hands. Ultimately, we will simply continue to focus on quality and service. By remaining committed to offering the best products and superior service, by doing the right things consistently, we believe those opportunities will come to us.
- What according to you is the current opportunities, biggest challenges, in Indian Solar Market.
A: The are currently too many inverter companies in the market offering low-quality products at the lowest prices. It is a race to the bottom that is not healthy for the solar and storage sectors, and it is ultimately short-changing the consumer as they are receiving sub-standard products and poor service. At Fox we take a long term, strategic view, and believe that product quality and longevity is key to building a sustainable business and establishing a brand presence.
- Please describe in brief about your company, directors, promoters, investors, its vision & mission
A: Tsingshan Group is a Fortune Global 500 company and is the largest producer of stainless steel in the world. It has more than 56,000 employees and annual sales revenues in 2019 of 37.6 billion USD. Tsingshan Group controls the complete production chain including nickel-chromium alloy smelting, battery material production, battery cell manufacturing, battery pack assembly and supply of energy storage systems to global markets. The move into the renewable energy industry is a natural progression for Tsingshan Group and represents a significant economic growth point beyond the production of stainless steel. As the world’s largest stainless steel company, Tsingshan Group is a great, visionary company. It has set up a full industrial chain for lithium-ion batteries, and FoxESS is an extended application of its battery business.
We have mature inverter and storage products and solutions, and with the support of
lithium-ion batteries from Tsingshan, we are in a powerful position for cost control –
so we have a competitive edge. In addition, we have been granted unlimited support from
Tsingshan for exploring markets and global expansion.
- What is the size of your company in terms of manufacturing capacities, growth chart, future expansion plans, revenues, shipments, ASP’s, financial figures,
A: Tsingshan Group is a Fortune Global 500 company and is the largest producer of stainless steel in the world. It has more than 56,000 employees and annual sales revenues in 2019 of 37.6 billion USD. We have 2 battery cell factories providing 21GWh of capacity and 2 inverter factories which are 11GW in total. We aim to produce 5GW of inverters in 2021 and 10GW in 2022
- How much is your R&D budget as % of your sales / profits
A: We are new company launching a new brand and range of products into the market, so we’re at a key stage in our development, and a lot of thought has gone into what we need to do to quickly and successfully establish ourselves in the market. The answer to that is simple – the products. Invest in product development and the rest takes care of itself. The proportion of R&D investment is around 15-20% of total company sales. This investment is key to our future success and we continue to attract leading engineers from the industry to join our team.
- What are the top 5 markets for your company in the past, present and future
A: I think the top 5 markets will not change in the short term; they are USA, India, China, Germany & Japan
- Kindly comment of Energy Storage as a game changer, its technology, cost trends…etc…
A: It represents a significant growth opportunity. The cost of lithium batteries has been decreasing by 15% year on year. As prices fall and as demand increases, the market will boom. FoxESS, as part of the Tsingshan Group and with vertically integrated supply chains, is ideally placed to take advantage of this growth.
- Kindly highlight your product, technology & company USP’s, distinctive advantages etc…
A: Quality is the core.
