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Suzlon Energy Ltd, India's top wind-turbine supplier, is looking to set up a manufacturing plant in Brazil and make the nation a hub for exporting to Latin American countries, its Chairman Tulsi Tanti said.
The plant, expected to be open in 18 months, will have initial capacity of 400 megawatts a year.
"We intend to make Brazil as a hub for exporting to Latin American countries," said Tanti, who was here to represent the Indian business community during visit of Prime Minister Narendra Modi for the BRICS Summit.
"Suzlon is one the early movers in Brazil. Over 700 MW of installed capacity is up and running and we will reach 750 MW by end of September," he said.
The Pune-based firm, which is fifth largest wind turbine manufacturer in the world with capacity of over about 6,000 MW spread across India, China, Germany, Canada, Portugal and the US, says Brazil is integral part of its long term strategy.
Cumulative capacity in Brazil will be 4000 MW by end of this year.
Brazil is one of the fastest growing markets in the world. In the medium term, Suzlon is working on meeting local content requirement as well as developing right product to compete in this market.
"In case the manufacturing facility is set up in (Northeastern Brazilian state of) Ceara, it will create about 100 to 150 direct jobs. For 1 direct job, one indirect job will be created," he said.
Brazilian banks will finance 75 per cent of the project with the rest funded by equity.
With the investment, Suzlon may receive state-backed debt from Brazil's development bank BNDES.
The firm was among five companies which were in 2012 disqualified from BNDES financing for not sourcing significant portion of its components from local suppliers, or making them domestically.
Among the turbines, Suzlon will produce at the Brazilian plant is the 2 megawatt S111 model.
Tanti said Brazil contributes 7.32 per cent of its revenue. Suzlon is number 2 in terms of installed capacity in Brazil.
It had supplied turbines to Brazilian companies CPFL Energias Renovaveis SA (382 MW), Queiroz Galvao SA (122 MW), Faisas (136 MW) and Martifer (94.5 MW).
Suzlon was ranked number 4 in 2013 in terms cumulative installed capacity in LATAM region. Along with Wobben and Impsa, Suzlon was among the first movers in Brazil.
"Brazil is integral part of our long term strategy. Our strategies are four fold. First, to ensure the commissioning of projects under construction and provide best in class service to current turbines and ensure 98 per cent plus availability.
"Second, working and preparing for new BNDES Finame code compliance. Third, launch of the S111 90m and 120 m product. Fourth, pursuing opportunities in the Latin American by being based out of Brazil," Tanti said.
