Suzlon Energy

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Suzlon Energy Ltd
Type Public
Traded as BSE: 532667
NSE: SUZLON
Industry Renewable energy
Founded 1995
Headquarters Pune, Maharashtra, India
Key people Tulsi Tanti, Founder, Chairman & MD
Products Wind Turbines
Revenue increase $5.4 billion (2009)[1]
Employees 13,000
Parent SUZLON
Subsidiaries REpower
Website www.suzlon.com
Suzlon generators in front of a vintage gas pump at the Bluegrass Ridge Wind Farm in King City, Missouri

Suzlon Energy (BSE: 532667, NSE: SUZLON) is a global wind power company based in India. In terms of market share, the company is the fifth largest wind turbine manufacturer world wide). In terms of net worth, it is the world's most valuable wind power company,[2] but measured by market value, the company is smaller than Vestas[3] and possibly GE, Gamesa Corporación Tecnológica, Enercon and Siemens, of which the market value is harder to know because they are not traded as independent entities.

With headquarters in Pune, it has several manufacturing locations in India, including Pondicherry, Daman, Bhuj, Gandhidham, and in Nandurbar, which at 1000MW is the biggest. There are also locations in mainland China, Germany and Belgium. The company is listed on the National Stock Exchange of India and on the Bombay Stock Exchange.

Contents

[edit] Company description

Suzlon is a vertically integrated wind power company. Suzlon delivers end-to-end wind power solutions from assembly, installation to commissioning.[4] The company manufactures blades, generators, panels, and towers in-house, as well as gearboxes through its partial ownership of Hansen Transmissions and state-of-the-art large or offshore turbines through its subsidiary REpower. The company is integrated downstream and delivers turnkey projects through its project management and installation consultancy, and operations & maintenance services. Suzlon is a multinational company with offices, R&D and technology centers, manufacturing facilities and service support centers spread across the globe.

Suzlon has design and R&D teams and facilities in Germany, India and The Netherlands to retrofit blades for clients. The international sales business of Suzlon is managed out of Aarhus, Denmark, while its global management office is in Pune, India.

Suzlon and Elin EBG Motoren GmbH of Austria have entered into a joint venture Suzlon Generators (P) Ltd to manufacture slip ring generators required for wind turbine generators (WTGs) at the former's manufacturing facility at Pune in Maharashtra.[5] Suzlon acquired Hansen Transmissions, Belgium in 2006. The acquisition of the world’s second leading gearbox maker gives Suzlon manufacturing and technology development capability for wind gearboxes, enabling an integrated R&D approach to design even more efficient wind turbines. It Plugs a critical gap in Suzlon’s supply chain as the Gearbox is one of the longest lead-time products in WTG value chain. It also develops a long-term growth driver in form of Wind and Industrial gearbox business of Hansen Transmissions.

Suzlon Energy Limited (SEL), India’s largest wind turbine manufacturer, announced crossing 8,000 MW (megawatt) of cumulative installations in India, underlining the strong momentum in India's fast growing wind energy market[citation needed]. This cumulative power generation capacity has the potential to light up four million homes annually. Suzlon has cumulatively added over 8,000 MW of wind power capacity for over 1,600 customers in India across 40 sites in eight States. Suzlon accounts for nearly half of the country’s total wind installations[citation needed]. In the key states of Tamil Nadu, Maharashtra and Gujarat, Suzlon’s installation base is over 1,000 MW each. Leading corporate such as the Bajaj Group, the Birla Group, MSPL, DLF, the Tata Group, the Reliance Group, the ITC Group, L&T, as well as public sector companies like GSPL, HPCL, Indian Railways, Rajasthan Mines & Minerals, GACL, GSPC, GSFC, Indian Oil, ONGC and State Bank of India (SBI), amongst others, have chosen Suzlon for their wind power projects[citation needed]. Suzlon is India's largest wind turbine manufacturer and has been leading the wind energy market in India for the past 12 years with nearly 50 percent YoY market share. The company has a workforce of 9,000 employees in India, and eight manufacturing facilities across the country.

[edit] History

Suzlon's story began in 1995 when founder Tulsi Tanti was managing a 20-employee textile company. Due to the local infrastructure's erratic availability of electricity and because of the rising costs of power, the highest business expenditure after the raw materials was electricity.[6]

Suzlon was founded by Tulsi Tanti in 1995, when he was working in a family-owned textile company. In that year, India's shaky power grid and the rising cost of electricity offset any profits the company would make.[7] After providing electricity for his own company, Tanti realized that other companies in India could also greatly benefit from being sold wind power technology and advised on its use. With the help of some of his friends of Rajkot, he moved into wind energy production as a way to secure the textile company's energy needs, and founded Suzlon Energy.[8] Suzlon adopted a business model wherein clients would be responsible for 25% of the up-front capital investment and Suzlon would arrange the remaining 75% on loan. Initially banks were hesitant to fund loans for this model but by 2008 40-50 Indian banks were financing wind power projects for Suzlon clients.[6]

In 2001, Tanti sold off the textile business, so he could focus on the development of his wind energy business. In 2009, Suzlon is still actively run by Tulsi Tanti, now in the role of Chairman and Managing Director.

In 2003, Suzlon got its first sale in USA, with an order from DanMar & Associates to supply 24 turbines in southwestern Minnesota.[9] Also in 2003 Suzlon set up an office in Beijing.[6]

Suzlon Rotor Corporation in 2006 began producing the blades in Pipestone, Minnesota in the United States. Among its clients is Wind Capital Group.[10]

In the year 2006, Suzlon reached a definitive agreement for acquisition of Belgium firm Hansen Transmissions, specializing in gearboxes for wind turbines, for $565 million. In 2007, the company purchased a controlling stake in Germany's REpower which valued the firm at US$ 1.6 billion.

In June 2007, Suzlon had signed a contract with Edison Mission Energy (EME) of US for delivery of 150 wind turbines of 2.1 MW in 2008 and a similar volume to be delivered in 2009. EME had an option not to purchase the 150 turbines due to be delivered in 2009, which it has chosen to exercise.

In November 2009, the company decided to sell 35% stake of Hansen for $370 million as part of its debt restructuring program, through placing new shares. It appointed Bank of America Merrill Lynch and Morgan Stanley as the managers and book runners for the same.[11][12][13]

In January 2011, Suzlon received an order worth $1.28 billion for building 1000MW of wind energy projects from the Indian branch of the Lord Swaraj Paul-owned Caparo Energy Ltd.[14]

In May 2011, Suzlon announced returning to profitability after the financial crisis of 2009 [15]

In October 2011, Suzlon sold its remaining 26.06% stake in Hansen Transmissions International NV to ZF Friedrichshafen AG for Rs890Cr ($178 million). [16] In the same month, it also achieved full control of its German subsidiary Repower by acquiring the remaining 5% stake held by minority shareholders that resisted the takeover. The takeover was completed through the squeez-out procedure by paying EUR 63 Million. [17]

[edit] Wind parks

Suzlon operates the largest wind park in the world, the 584 MW wind park in the Eastern Ghats-Tamil Nadu. Also, the company operates what was at the time of construction Asia's largest wind park, a 201MW park near the Koyna reservoir in Satara district of Maharashtra - The Vankusawade Wind Park.[18]

Suzlon will install 45 units of its S88 – 2.1 megawatt wind turbine for AGL at the Hallett Wind Farm to be located approximately 220 kilometers north of Adelaide, in South Australia.[19]

[edit] See also

Wikimedia Commons has media related to: Suzlon Energy

[edit] External links

[edit] References

  1. ^ Business Standard (2009-06-28). "Suzlon FY09 consolidated revenue up 91%". Business-standard.com. http://www.business-standard.com/india/news/suzlon-fy09-consolidated-revenue91/65842/on. Retrieved 2011-11-22. 
  2. ^ "The World's Billionaires, #368 Tulsi Tanti" Forbes. March 5, 2008. Accessed July 26, 2008.
  3. ^ Vestas Wind Systems A/S Market Valuation Multiples, Infinancials, accessed December 26, 2009
  4. ^ Case Study: Suzlon[dead link]
  5. ^ Suzlon Energy Website[dead link]
  6. ^ a b c Kumar, Nirmalya (2009). India's Global Powerhouses. Harvard Business Press. pp. 136–8. ISBN 978-1-4221-4762-7. 
  7. ^ Heroes of the Environment, Time, October 17th 2007, accessed on December 26th 2009.
  8. ^ Forbes[dead link]
  9. ^ "Wind Man". Forbes.com. 2006-10-27. http://www.forbes.com/forbes/2006/0619/124.html. Retrieved 2011-11-22. 
  10. ^ Renewable energy world[dead link]
  11. ^ "सुजलॉन बेचेगी हैनसेन का 35% हिस्सा". Sharemanthan.in. http://www.sharemanthan.in/index.php/component/content/article/61-corporate-update/4482-suzlon-to-sell-35-per-cent-of-hansen. Retrieved 2011-11-22. 
  12. ^ "Suzlon: awaiting large orders - Money Matters". livemint.com. 2010-02-02. http://www.livemint.com/2010/02/01224856/Suzlon-awaiting-large-orders.html. Retrieved 2011-11-22. 
  13. ^ Business Standard. "Suzlon: Some breeze, finally". Business-standard.com. http://www.business-standard.com/india/news/suzlon-some-breeze-finally/10/02/378264/. Retrieved 2011-11-22. 
  14. ^ Yep, Eric (2011-01-28). "Suzlon Energy Bags $1.28 Billion Order - WSJ.com". Online.wsj.com. http://online.wsj.com/article/SB10001424052748703956604576109362906432814.html. Retrieved 2011-11-22. 
  15. ^ http://www.suzlon.com/images/Media_Center_news/198_Press%20Release.pdf
  16. ^ "Suzlon Energy to Receive $178 Million for Hansen Stake Next Week- Bloomberg". Mobile.bloomberg.com. 2011-10-07. http://mobile.bloomberg.com/news/2011-10-07/suzlon-energy-to-receive-178-million-for-hansen-stake-next-week. Retrieved 2011-11-22. 
  17. ^ Yep, Eric (2011-10-28). "Suzlon: Completed 'Squeeze-Out' Process of REpower Minority Shareholders - WSJ.com". Online.wsj.com. http://online.wsj.com/article/SB10001424052970203554104577003263853518948.html. Retrieved 2011-11-22. 
  18. ^ Asias largest wind park[dead link]
  19. ^ Suzlon[dead link]
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