Suzlon energy


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Operations perspective on Suzlon

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  • Sections: 1 Wind Energy Market 2 Windmill Design 3 Suzlon Profile 4 Products and Services 5 Operations 6 Differentiating Factor 7Advantage of Vertical Integration 8 Problems and Challenges 9 Future Strategy
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  • Ref: Reference, Moderate, Advanced – These refer to 3 possible “wind market growth rate” scenarios
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  • Clockwise from top left 1. Largest Windmill - Enercon E-126 (upto 7MW) 2. Proposed Highway Turbines - Arizone State Univ 3. Bahrain World Trade Center 4. MARS - Magenn Power Air Rotor System 5. Sky Serpent - Doug Salem 6. Dutch proposal for Tree Windmill Ref:
  • Ref: Suzlon One Earth is a self-supported office of Suzlon with it’s own electrical, water, food supply. Focus on being a holistic building rather than a “green” building.
  • Ref: 6 main products. Countless parts manufactured by subsidiary companies. Unique in the fact that Suzlon customizes products to an exceptionally high degree for customers based on location and weather conditions. Smallest turbines especially useful for smaller clients.
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  • Ref: Since Suzlon produces most of its own components under it’s own subsidiaries or through partner companies, it is vertically integrated to a very high degree. Hansen Transmission allows for entry into the European Industrial gears Market REPower specializes in offshore wind turbines Joint Venture with Elin to manufacture Slip Ring Generators
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  •   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 (market-specific) service, and the products combine to satisfy a common  need . Vertical integration is one method of avoiding the  hold-up problem
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  • Suzlon energy

    1. 1. Suzlon Energy Ltd: Making Foray Abroad Presented by Anupam Iyer Arjun Ramakrishnan Bhoomika Diwan Chandni Agarwal Manish Singh Tarun Rustagi 1
    2. 2. Presentation Flow <ul><li>Wind Energy Market </li></ul><ul><li>Windmill Turbine Generators - Introduction </li></ul><ul><li>Suzlon Energy Ltd </li></ul><ul><ul><li>Introduction </li></ul></ul><ul><ul><li>Products & Services </li></ul></ul><ul><li>Vertical Integration </li></ul><ul><ul><li>Introduction </li></ul></ul><ul><ul><li>Varieties </li></ul></ul><ul><ul><li>Examples </li></ul></ul><ul><li>Windmill Turbine Generators </li></ul><ul><ul><li>Components </li></ul></ul><ul><ul><li>Manufacturing Operations </li></ul></ul><ul><li>Suzlon Energy Ltd </li></ul><ul><ul><li>Group Companies </li></ul></ul><ul><li>Advantages of Vertical Integration </li></ul><ul><li>Differentiating Factor </li></ul><ul><li>Problems & Challenges </li></ul><ul><li>Future Strategy </li></ul>
    3. 3. Wind Energy Market <ul><ul><li>Security of Supply </li></ul></ul><ul><ul><li>Economic Considerations </li></ul></ul><ul><ul><li>Environmental Concerns </li></ul></ul><ul><ul><li>Significant Facts: </li></ul></ul><ul><ul><li>2000-2010: Wind power generation grown by more than ten times </li></ul></ul><ul><ul><li>Global wind energy market to reach 240GW by 2012 </li></ul></ul><ul><ul><li>Competitive and lucrative as long as Oil Barrel costs > $40 </li></ul></ul>
    4. 4. Wind Energy Market
    5. 5. Windmill Turbine Generators <ul><ul><li>Blades aerodynamically similar to airplane wings </li></ul></ul><ul><ul><li>Mounted 30m or above to take advantage of faster and less turbulent winds. The higher, the better. </li></ul></ul><ul><ul><li>Have emergency shut-off in case of storms </li></ul></ul><ul><ul><li>Technological trends increasing in complexity </li></ul></ul>
    6. 6. Unconventional Designs
    7. 7. Suzlon Energy Ltd: A Brief <ul><ul><li>Est. 1995 by Tulsi Tanti </li></ul></ul><ul><ul><li>Headquarters in Pune. Offices across 5 continents. </li></ul></ul><ul><ul><li>8th largest manufacturer in the world. Largest in India. </li></ul></ul><ul><ul><li>In terms of net worth, world's most valuable wind energy company, though market value lesser than smaller companies </li></ul></ul><ul><ul><li>Operates largest wind park - 584 MW - Tamil Nadu </li></ul></ul><ul><ul><li>Operates and maintains Suzlon One Earth </li></ul></ul><ul><ul><li>Latest contract is by Caparo Energy for $1.28 billion </li></ul></ul>
    8. 8. Suzlon Energy Ltd: Products & Services <ul><ul><li>Windmill Electricity Generators </li></ul></ul><ul><ul><li>S88 Mark II - 2.25 MW </li></ul></ul><ul><ul><li>S88 - 2.1 MW </li></ul></ul><ul><ul><li>S82 – 1.5 MW </li></ul></ul><ul><ul><li>  Services </li></ul></ul><ul><ul><li>Wind Energy Estimation </li></ul></ul><ul><ul><li>Land Sourcing and Permitting </li></ul></ul><ul><ul><li>Infrastructure Development </li></ul></ul><ul><ul><li>Installation and Commissioning </li></ul></ul><ul><ul><li>Operation and Maintenance </li></ul></ul><ul><ul><li>S66 - 1.25 MW </li></ul></ul><ul><ul><li>S64 – 1.25 MW </li></ul></ul><ul><ul><li>S52 – 600 kW </li></ul></ul>
    9. 9. Vertical Integration: Introduction Vertical integration is the degree to which a firm owns its downstream suppliers and its upstream buyers. Contrary to horizontal integration, which is a consolidation of many firms that handle the same part of the production process, vertical integration is typified by one firm engaged in different parts of production
    10. 10. Vertical Integration: Varieties A company exhibits  backward vertical integration  when it controls subsidiaries that produce some of the inputs used in the production of its products. A company tends toward  forward vertical integration  when it controls distribution centers and retailers where its products are sold. Balanced vertical integration  means a firm controls all of these components, from raw materials to final delivery.
    11. 12. Suzlon’s Vertical Integration <ul><li>Designing & Developing of Rotor blades in Netherlands </li></ul><ul><li>Acquisition of Hansen Transmission, Belgium – Manufactures turbines gear box </li></ul><ul><li>Acquisition of RE power, Germany – Manufactures high capacity turbines </li></ul><ul><li>Manufactures generators, panels, and towers </li></ul><ul><li>R&D and technology centers, manufacturing facilities and service support centers spread across the globe </li></ul><ul><li>Delivers projects through its project management and installation consultancy, and operations & maintenance services </li></ul>
    12. 13. Windmill Turbine Generators: Components
    13. 14. Manufacturing Operations <ul><ul><li>  Production </li></ul></ul><ul><ul><li>Introduction </li></ul></ul><ul><ul><li>rotor blades </li></ul></ul><ul><ul><li>nacelles </li></ul></ul><ul><ul><li>nacelle covers </li></ul></ul><ul><ul><li>nose cones </li></ul></ul><ul><ul><li>control panels </li></ul></ul><ul><ul><li>control systems </li></ul></ul><ul><ul><li>hubs </li></ul></ul><ul><ul><li>generators </li></ul></ul><ul><ul><li>panels </li></ul></ul><ul><ul><li>tubular towers </li></ul></ul><ul><ul><li>gear boxes (Hansen Transmission) </li></ul></ul><ul><ul><li>offshore turbines (REPower) </li></ul></ul><ul><ul><li>Slip Ring Generators (Elin EBG Motoren GmbH) </li></ul></ul><ul><ul><li>  Services </li></ul></ul><ul><ul><li>WTG Assembly </li></ul></ul><ul><ul><li>Retrofitting of blades for clients </li></ul></ul><ul><ul><li>Delivery and service of wind farms  </li></ul></ul><ul><ul><li>R&D: Germany/India </li></ul></ul>
    14. 15. Suzlon Companies Location Company Products India     Gandhidham Suzlon Structures Pvt Ltd Tubular Towers Bhuj Suzlon Energy Ltd Rotor Blades Vadodara SCL CEC Daman Suzlon Energy Ltd Rotor Blades, WTG Assembly, Nacelles, Nacelle Covers, Control Systems, Nose Cones Dhule Suzlon Energy Ltd Rotor Blades, Tubular Towers Chakan Suzlon Generators Ltd Generators Padubidri Suzlon Wind International Ltd Nacelles, Nacelle Covers, Nose Cones Padubidri SE Composites Ltd Rotor Blades Coimbatore SE Electricals Ltd Generators, Control Systems Pondicherry Suzlon Energy Ltd Rotor Blades, Nacelles, Nacelle Covers, Control Systems, Hubs       China     Tianjin Suzlon Energy Tianjin Ltd Rotor Blades, Nacelles, Nacelle Covers, Control Panels, Hubs, Generators, Nose Cones       USA     Pipestone Suzlon Rotor Corp Rotor Blades, Nose Cones
    15. 16. Advantages of Vertical Integration <ul><ul><li>No gaps in supply chain </li></ul></ul><ul><ul><li>No bottlenecks in supply chain due to demand-supply mismatch </li></ul></ul><ul><ul><li>Low logistics cost </li></ul></ul><ul><ul><li>Dedicated delivery capability </li></ul></ul><ul><ul><li>Flexible response to local markets </li></ul></ul><ul><ul><li>Expansion into markets (E.g.: REPower - Euro Markets) </li></ul></ul><ul><ul><li>Supply Chain synergy </li></ul></ul><ul><ul><li>Total solutions </li></ul></ul>
    16. 17. Differentiating Factor <ul><ul><li>Turnkey (end-to-end) solutions </li></ul></ul><ul><ul><li>Vertical Integration </li></ul></ul><ul><ul><li>Global Integration </li></ul></ul><ul><ul><li>Focus on QM and Health, Safety and Environment  </li></ul></ul><ul><ul><li>Customized products as per needs of individual customers  </li></ul></ul><ul><ul><li>Low cost producer, top-class design </li></ul></ul>
    17. 18. Problems and Challenges <ul><ul><li>Declining consolidated sales </li></ul></ul><ul><ul><li>Declining share value and public opinion </li></ul></ul><ul><ul><li>US economy slowdown </li></ul></ul><ul><ul><li>Need to manufacture wider range of turbines </li></ul></ul><ul><ul><li>New players entering a lucrative market </li></ul></ul>
    18. 19. Future Strategy <ul><ul><li>No further need for acquisitions </li></ul></ul><ul><ul><li>Consolidate global businesses </li></ul></ul><ul><ul><li>Product innovation </li></ul></ul><ul><ul><li>Cost reduction </li></ul></ul><ul><ul><li>To be order winner </li></ul></ul>
    19. 20. Questions?