FT : Suzlon Sizzling

Monday, October 29, 2007

Suzlon, the Indian wind turbine manufacturer, has revealed plans to more than double its production capacity to take advantage of soaring demand, including from China and India, and to list its Hansen Transmissions subsidiary on the London Stock Exchange.  In an interview with the Financial Times, Tulsi Tanti, Suzlon chairman and managing director, said that his group’s board had approved investment to expand its manufacturing capacity from 2,700MW to 5,700MW by the end of 2008.  The new wind turbine factories would be built in India, but two of them would be located near the country’s ports in order to serve the international market.  Mr Tanti said that he aimed to expand Suzlon’s market share from 14%t to 25%.  “We are the fastest-growing company in the industry”, he said, adding that his group had grown 100% in each of the past three years compared with average sector growth of 20% to 25%.  He said that Suzlon built and installed 1,000MW of wind turbines in the first half of this year compared with 1,450MW for the whole of 2006.

Suzlon and Repower Systems, the German turbine maker, had more than $6bn of orders representing more than 4,700MW of capacity on their books for 2008 and 2009, according to Mr Tanti.  This year Suzlon paid €1.34bn ($1.9bn) to take over Germany’s Repower, beating a rival bid from Areva, the French energy group.  Mr Tanti said that the acquisition meant Suzlon was now a fully integrated turbine manufacturer.  Last year Suzlon paid $565m to buy Belgian gearbox maker Hansen Transmissions International. Mr Tanti said Suzlon was preparing to list Hansen on the London Stock Exchange, and said more details would be given next month.  Another recent development is Suzlon’s move into making components such as gearboxes and rotor blades to sell to other wind turbine groups.  “Suzlon is the only organisation with full access to every component in the wind process,” said Mr Tanti.  He said that there were “huge opportunities for growth” in the Chinese market, where 3,000MW- 4,000MW of wind power had been installed and about 10,000MW was being built.

Reference : http://www.ft.com/cms/s/0/705a35dc-85bf-11dc-8170-0000779fd2ac.html

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