Wind power major Suzlon Energy has been in the news for varied reasons lately. There’s completion of a 19.5-MW project for the Gujarat Mineral Development Corp. ahead of schedule, winning a repeat order from Turkey-based Ayen Enerji. Then there are reports of the Tulsi Tanti (chairman and MD) family offloading 4.5 per cent stake — reducing their holding to 53.08 per cent of the paid-up capital — in the company. The firm has also been raising funds to reduce debt and fuel expansion — it raised $201.9 million through global depository receipts and $93.9 million worth of zero-coupon convertible bonds in July this year.
Suzlon is also striving to get over the blade crack issue that surfaced in late 2007 in the US. The problems initially slowed orders for Suzlon, opening the door for competitor General Electric. Nevertheless, Suzlon held over 50 per cent of the Indian market and 12.3 per cent of the global market in 2008, thanks to its acquisition of Germany’s REpower Systems.
According to an analyst with Religare Capital Markets, “Suzlon has primarily been combating two major issues, one of debt (Rs 14,000 crore) and the other of the cracked blades. The latter has been fixed and is behind them now. But the debt issue is yet to be resolved. The amount got compounded due to the REpower acquisition.”
Suzlon might have witnessesed a slowdown in the US market, but its market share in Australia and New Zealand has been growing. The company plans to set up a manufacturing unit in China, a rotor blade facility in the US and a forging and foundry plant in India, increasing its capacity from 1,500 MW to 4,700 MW. With signs of revival becoming evident, Suzlon can breathe easy and hope to win more orders. Suzlon moved up to No. 16 in this year’s BW ranking.
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Wind power major Suzlon Energy has been in the news for varied reasons lately. There’s completion of a 19.5-MW project for the Gujarat Mineral Development Corp. ahead of schedule, winning a repeat order from Turkey-based Ayen Enerji. Then there are reports of the Tulsi Tanti (chairman and MD) family offloading 4.5 per cent stake — reducing their holding to 53.08 per cent of the paid-up capital — in the company. The firm has also been raising funds to reduce debt and fuel expansion — it raised $201.9 million through global depository receipts and $93.9 million worth of zero-coupon convertible bonds in July this year.
According to an analyst with Religare Capital Markets, “Suzlon has primarily been combating two major issues, one of debt (Rs 14,000 crore) and the other of the cracked blades. The latter has been fixed and is behind them now. But the debt issue is yet to be resolved. The amount got compounded due to the REpower acquisition.”
Suzlon might have witnessesed a slowdown in the US market, but its market share in Australia and New Zealand has been growing. The company plans to set up a manufacturing unit in China, a rotor blade facility in the US and a forging and foundry plant in India, increasing its capacity from 1,500 MW to 4,700 MW. With signs of revival becoming evident, Suzlon can breathe easy and hope to win more orders. Suzlon moved up to No. 16 in this year’s BW ranking.
Dhanya Krishnakumar