Suzlon targets 5000 mw capacity

Suzlon Energy, India's leading wind energy equipment manufacturer, plans to reach 5000 MW capacity installation from the current 2700 MW by the end of this financial year, to become one among the top four integrated wind energy manufacturers in the world. As part of this, Suzlon is in the process of investing about Rs.3310 crore at its Indian and overseas facilities.

"As per the current ongoing expansion, our capacity will reach 4200 MW and after the integration of the recently acquired RePower by the third quarter of 2007-08, our total capacity will touch 5000 MW" said Tulsi R Tanti, chairman and managing director.

He said the acquired Belgian gearbox maker Hansen Transmissions is expanding its manufacturing capacity from about 3600 MW to 5800 MW with an investment of about Rs.800 crore. In India, the capacity is added from 3500 MW to 9300 MW and the investment is to the tune of Rs 980 crore.

In the case of wind turbines, Suzlon has 1500 MW capacity in India and 600 MW each capacity in China and US. An additional 1500 MW capacity is being added at Udupi in Karnataka with an investment of Rs 750 crore.

The company is also setting up a greenfield forging facility in Baroda with an investment of Rs 250 crore, a foundry unit at a SEZ in Coimbatore for Rs.500 crore and a testing facility at Baroda for Rs 30 crore. All the capacity additions are targeted to be completed by March 2008.

Tulsi R Tanti said the company is in the process of integrating the German wind-power turbine maker REpower Systems AG, which it bought in May this year for $ 1.6 billion. The integration process will be mainly in technology and processes and in the supply chain of raw materials where respective companies identify synergy. At present Suzlon has 34 per cent stake in Repower and the pay out is in a three year instalment mode, which makes it a safe acquisition without burdening the company, he said.

Suzlon is in the process of adding more manpower by around 1000 per annum, targeting to touch 15,000 people from the current 11,000. Focus of business related to offshore wind energy would be mainly in Europe and countries like China. Currently, Suzlon has a total order book worth Rs.13,500 crore (Rs.3.4 billion) and Repower has about $ 1 billion.