Suzlon Energy
Encyclopedia
Wind power
Wind power is the conversion of wind energy into a useful form of energy, such as using wind turbines to make electricity, windmills for mechanical power, windpumps for water pumping or drainage, or sails to propel ships....
company based in India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
. In terms of market share, the company is the fifth largest wind turbine manufacturer in Asia
Asia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...
(and the 8th largest worldwide). In terms of net worth
Net worth
In business, net worth is the total assets minus total outside liabilities of an individual or a company. For a company, this is called shareholders' preference and may be referred to as book value. Net worth is stated as at a particular year in time...
, it is the world's most valuable wind power company, but measured by market value, the company is smaller than Vestas
Vestas
Vestas Wind Systems A/S is a Danish manufacturer, seller, installer, and servicer of wind turbines. It is the largest in the world, but due to very rapid growth of its competitors, its market share decreased from 28% in 2007 to 12.5% in 2009...
and possibly GE, Gamesa Corporación Tecnológica
Gamesa Corporación Tecnológica
Gamesa Corporación Tecnológica , is a manufacturing company principally involved in the fabrication of wind turbines and the construction of wind farms....
, Enercon
Enercon
Enercon GmbH, based in Aurich, Germany, is the fourth-largest wind turbine manufacturer in the world and has been the market leader in Germany since the mid-nineties. Enercon has production facilities in Germany , Sweden, Brazil, India, Canada, Turkey and Portugal...
and Siemens
Siemens
Siemens may refer toSiemens, a German family name carried by generations of telecommunications industrialists, including:* Werner von Siemens , inventor, founder of Siemens AG...
, of which the market value is harder to know because they are not traded as independent entities.
With headquarters in Pune
Pune
Pune , is the eighth largest metropolis in India, the second largest in the state of Maharashtra after Mumbai, and the largest city in the Western Ghats. Once the centre of power of the Maratha Empire, it is situated 560 metres above sea level on the Deccan plateau at the confluence of the Mula ...
, it has several manufacturing sites in India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
including Pondicherry, Daman, Bhuj
Bhuj
Bhuj is a city and a municipality in Kachchh district in the state of Gujarat, India.-History:It was established by Rao Hamirji in 1510 and was made the state capital by Rao Khengarji I in 1549. Its foundation stone as state capital laid formally on Vikram Samvat 1604 Maagha 5th...
and Gandhidham
Gandhidham
Gandhidham is a city and a municipality in the Kachchh District of Gujarat state of India. The town was created in the early 1950s for the resettlement of the refugees from Sindh of Pakistan in the aftermath of the partition of India....
as well as in mainland China
Mainland China
Mainland China, the Chinese mainland or simply the mainland, is a geopolitical term that refers to the area under the jurisdiction of the People's Republic of China . According to the Taipei-based Mainland Affairs Council, the term excludes the PRC Special Administrative Regions of Hong Kong and...
, Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
and Belgium
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
. The company is listed on the National Stock Exchange of India
National Stock Exchange of India
The National Stock Exchange is a stock exchange located at Mumbai, Maharashtra, India. It is the 9th largest stock exchange in the world by market capitalization and largest in India by daily turnover and number of trades, for both equities and derivative trading. NSE has a market capitalization...
and on the Bombay Stock Exchange
Bombay Stock Exchange
The Bombay Stock Exchange is a stock exchange located on Dalal Street, Mumbai and is the oldest stock exchange in Asia. The equity market capitalization of the companies listed on the BSE was 1.63 trillion as of December 2010, making it the 4th largest stock exchange in Asia and the 8th largest...
.
Company description
Suzlon is a vertically integratedVertical integration
In microeconomics and management, the term vertical integration describes a style of management control. Vertically integrated companies in a supply chain are united through a common owner. Usually each member of the supply chain produces a different product or service, and the products combine to...
wind power company. Suzlon delivers end-to-end wind power solutions from assembly, installation to commissioning. The company manufactures blades, generators, panels, and towers in-house, as well as gearboxes through its partial ownership of Hansen Transmissions
Hansen Transmissions
Hansen Transmissions International NV is an established global wind turbine gearbox and industrial gearbox designer, manufacturer and supplier, with a leading position in the wind turbine gearbox market...
and state-of-the-art large or offshore turbines through its subsidiary REpower
REpower
REpower is a German wind turbine company founded in 2001, purchased December 2009 by Suzlon Energy Ltd. Its product range comprises several types of turbines with rated outputs of between 1.5 and 6 megawatts. It created the 5M, in 2005....
. The company is integrated downstream
Downstream (manufacturing)
Downstream in manufacturing refers to processes that occur later on in a production sequence or production line.Viewing a company "from order to cash" might have high-level processes such as Marketing, Sales, Order Entry, Manufacturing, Packaging, Shipping, Invoicing...
and delivers turnkey
Turnkey
A turn-key or a turn-key project is a type of project that is constructed by a developer and sold or turned over to a buyer in a ready-to-use condition.-Common usage:...
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
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
, India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
and The Netherlands to retrofit
Retrofit
Retrofitting refers to the addition of new technology or features to older systems.* power plant retrofit, improving power plant efficiency / increasing output / reducing emissions...
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 venutre Suzlon Generators (P) Ltd to manufacture slip ring generators required for wind turbine generators (WTGs) at the former's manufacturing facility at Pune
Pune
Pune , is the eighth largest metropolis in India, the second largest in the state of Maharashtra after Mumbai, and the largest city in the Western Ghats. Once the centre of power of the Maratha Empire, it is situated 560 metres above sea level on the Deccan plateau at the confluence of the Mula ...
in Maharashtra
Maharashtra
Maharashtra is a state located in India. It is the second most populous after Uttar Pradesh and third largest state by area in India...
. 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 5,000 MW (megawatt) of cumulative installations in India, underlining the strong
momentum in India's fast growing wind energy market. This cumulative power generation
capacity has the potential to light up four million homes annually.
Suzlon has cumulatively added over 5,000 MW of wind power capacity for over 1,500
customers in India across 40 sites in eight States. Suzlon accounts for nearly half of the
country’s total wind installations. In the key states of Tamil Nadu, Maharashtra and Gujarat,
Suzlon’s installation base is over 1,000 MW each. Leading corporates 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.
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.
History
Suzlon's story began in 1995 when founder Tulsi TantiTulsi Tanti
Tulsi Tanti is the chairman and managing director of Suzlon Energy, a US $2 billion market cap wind power based company. He, along with his three siblings, own 58% of the company. He is from Rajkot Gujarat where he started his first venture which was in textiles in Surat called Sulzer Synthetics P....
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.
Suzlon was founded by Tulsi Tanti
Tulsi Tanti
Tulsi Tanti is the chairman and managing director of Suzlon Energy, a US $2 billion market cap wind power based company. He, along with his three siblings, own 58% of the company. He is from Rajkot Gujarat where he started his first venture which was in textiles in Surat called Sulzer Synthetics P....
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. 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. 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.
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
Minnesota
Minnesota is a U.S. state located in the Midwestern United States. The twelfth largest state of the U.S., it is the twenty-first most populous, with 5.3 million residents. Minnesota was carved out of the eastern half of the Minnesota Territory and admitted to the Union as the thirty-second state...
. Also in 2003 Suzlon set up an office in Beijing.
Suzlon Rotor Corporation in 2006 began producing the blades in Pipestone, Minnesota
Pipestone, Minnesota
As of the census of 2000, there were 4,280 people, 1,900 households, and 1,138 families residing in the city. The population density was 1,090.8 people per square mile . There were 2,097 housing units at an average density of 534.4 per square mile...
in the United States. Among its clients is Wind Capital Group
Wind Capital Group
The wind power developer Wind Capital Group was founded in 2005 by Missouri native Tom Carnahan.- Blue Grass Ridge Wind Farm:On January 31st 2006, Wind Capital Group announced the planned construction of Blue Grass Ridge Wind Farm near King City in Gentry County, Missouri. Construction of the 27...
.
In the year 2006, Suzlon reached a definitive agreement for acquisition of Belgium firm Hansen Transmissions, specializing in gearboxes for wind turbines, for $565 million. In 2007, the company purchased a controlling stake in Germany's REpower
REpower
REpower is a German wind turbine company founded in 2001, purchased December 2009 by Suzlon Energy Ltd. Its product range comprises several types of turbines with rated outputs of between 1.5 and 6 megawatts. It created the 5M, in 2005....
which valued the firm at US$ 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.
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.
In May 2011, Suzlon announced returning to profitability after the financial crisis of 2009
In October 2011, Suzlon sold it's remaining 26.06% stake in Hansen Transmissions International NV to ZF Friedrichshafen AG for Rs890Cr ($178 million).
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.
Wind parks
Suzlon operates the largest wind park in the world, the 584 MW wind park in the Eastern GhatsEastern Ghats
The Eastern Ghats or Eastern Ghauts are a discontinuous range of mountains along India's eastern coast. The Eastern Ghats run from West Bengal state in the north, through Orissa and Andhra Pradesh to Tamil Nadu in the south passing some parts of Karnataka. They are eroded and cut through by the...
-Tamil Nadu
Tamil Nadu
Tamil Nadu is one of the 28 states of India. Its capital and largest city is Chennai. Tamil Nadu lies in the southernmost part of the Indian Peninsula and is bordered by the union territory of Pondicherry, and the states of Kerala, Karnataka, and Andhra Pradesh...
. Also, the company operates what was at the time of construction Asia's largest wind park, a 201MW park near the Koyna
Koyna
Koyna may refer to:*Koyna River, river that originates in the Western Ghats of Maharashtra*Koynanagar, town at the site of the Koyna Dam*Koyna Dam, A dam on Koyna River* Koyna Hydroelectric Project, Hydroelectric project associated with Koyna River...
reservoir in Satara
Satara
Satara is a city located in the Satara District of Maharashtra state of India. The town is 2320 ft. above sea-level, near the confluence of the Krishna and its tributary river Venna. The city was the capital of the Maratha empire in the 17th century, hence one of the the historical cities of...
district of Maharashtra
Maharashtra
Maharashtra is a state located in India. It is the second most populous after Uttar Pradesh and third largest state by area in India...
- The Vankusawade Wind Park
Vankusawade Wind Park
Vankusawade Wind Park is located on a high mountain plateau at 1,150 m above the Koyana Reservoir, around 40 km from the town of Satara, Satara District in Maharashtra. When completed, it will be Asia's biggest wind power park and will generate 250 MW...
.
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.
See also
- List of renewable energy companies by stock exchange
- List of wind turbine manufacturers
- VestasVestasVestas Wind Systems A/S is a Danish manufacturer, seller, installer, and servicer of wind turbines. It is the largest in the world, but due to very rapid growth of its competitors, its market share decreased from 28% in 2007 to 12.5% in 2009...
- Wind ProspectWind ProspectWind Prospect group undertakes all aspects of wind energy development, including design, construction, operation and commercial services ....
- Wind power in IndiaWind power in IndiaThe development of wind power in India began in the 1990s, and has significantly increased in the last few years. Although a relative newcomer to the wind industry compared with Denmark or the US, India has the fifth largest installed wind power capacity in the world...
- Hallett Wind Farm
- Solar power in IndiaSolar power in IndiaIndia is densely populated and has high solar insolation, an ideal combination for using solar power in India. India is already a leader in wind power generation...
- Suzlon One EarthSuzlon One EarthSuzlon One Earth is the world headquarters of the Suzlon Group of Companies, Asia's largest wind energy provider.Suzlon One Earth is the largest building complex poised for a LEED Platinum rated green building status in the Indian Sub-continent. It is a living laboratory of sustainable technologies...