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RRB Energy plans to raise Rs 100-150 cr

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BS Reporter Chennai
Last Updated : Jan 20 2013 | 3:11 AM IST

Wind electric generator manufacturer RRB Energy Ltd is planning to raise Rs 100-150 crore from private equity players to mainly fund and develop 3 mega watt (Mw) wind energy generator (WEG).

The company, which has recently launched 1.8 Mw wind turbine product in the market, is presently focusing on developing 3 Mw WEG and plans are afoot to complete the prototype in 2015-16, said Sarvesh Kumar, deputy managing director, RRB Energy Ltd. It requires an investment of around Rs 125 crore to develop the 3 Mw WEG. “We will raise Rs 100-150 crore through private equity for developing the larger capacity product. A number of funds are in touch with us, but we have not zeroed in on anyone,” said Kumar. However, the company is not looking to dilute stake for the time being, he added. Its WEG manufacturing facility in Poonamallee, in Chennai, presently has a production capacity of about 200 Mw for all its product range of 225 kilowatt (kW), 500 kW, 600 kW and the newly-launched 1.8 Mw turbines.

With an additional investment of Rs 25-30 crore, the production capacity could be expanded to 600 Mw a year. The company is planning to achieve an overall production capacity of around 600 Mw during 2012-13, with 20 per cent of its turnover coming from exports. It has so far invested around Rs 225 crore in Poonamallee facility.

The company also has an R&D facility in Sriperumbudur, near Chennai, which developed and manufactured two turbines of 1.8 Mw capacity, at a cost of Rs 100 crore. RRB Energy, which posted a turnover of Rs 550 crore last fiscal, is expecting to see a turnover of Rs 800 crore for the fiscal year 2011-12.

It has an order book of Rs 300 crore and a has sold around 250 turbines of 500 kW and 600 kW, he said.

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First Published: Mar 24 2012 | 9:18 PM IST

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