3 c report on suzlon energy ltd.


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3 c report on suzlon energy ltd.

  3. 3. INTRODUCTION Suzlon Energy Limited is an Indian multinational wind power company based in Pune, India. In terms of market share, in 2012 the company was the fifth largest wind turbine manufacturer by cumulative installed capacity worldwide with approaching above 22,000 megawatts of installations in 32 countries. Suzlon consists of Suzlon Energy Limited (SEL), India, (The Company) and 84 subsidiaries (12 Indian and 72 international). Suzlon is present in 33 countries across six continents: North and South America, Asia, Australia, Europe, and Africa. With headquarters in Pune, it operates several manufacturing facilities in India, at places such as Coimbatore, Padubidri, Vadodara, Daman, Dhule, Chakan, Gandhidham and Pondicherry. It also operates facilities in Mainland China, Germany and Belgium. The company is listed on the National Stock Exchange of India and on the Bombay Stock Exchange. Suzlon is a vertically integrated 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 and state-ofthe-art large or offshore turbines through its subsidiary REpower.
  4. 4. Suzlon has design and R&D teams and facilities in India, Germany, Denmark and The Netherlands to retrofit blades for clients. The international sales business of Suzlon is managed out of Aarhus, Denmark, while its global management office is in Vadodara, India. Suzlon Energy Limited (SEL), India’s largest wind turbine manufacturer, announced crossing 8,000 megawatts 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 7,600 megawatts of wind power capacity for over 1,700 customers in India across 40 sites in eight States. Suzlon accounts for nearly half of the country’s total wind installations.
  5. 5. HISTORY Suzlon's story began in 1995 when founder Tulsi Tanti 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 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.
  6. 6. In 2003, Suzlon got its first sale in USA, with an order from DanMar & Associates to supply 24 turbines in southwestern Minnesota. Also in 2003 Suzlon set up an office in Beijing. Suzlon Rotor Corporation in 2006 began producing the blades in Pipestone, Minnesota in the United States. Among its clients is Wind Capital Group. In the year 2006, Suzlon reached a definitive agreement for acquisition of Belgium firm Hansen Transmissions, specialising in gearboxes for wind turbines, for $565 million. In 2007, the company purchased a controlling stake in Germany's REpower which valued the firm at US$ 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 megawatts 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 US$1.28 billion for building 1000 megawatts 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
  7. 7. In October 2011, Suzlon sold its remaining 26.06% stake in Hansen Transmissions International NV to ZF Friedrichshafen AG for 890 crore (US$140 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. It has to redeem 500 million worth of FCCB’s (foreign currency convertible bonds) in 2012 in tranches of 300 million in June and 200 million in October respectively. In line with the previously announced strategy to dispose of noncritical group assets to reduce long-term debt, Suzlon Chairman said that Suzlon Energy, will sell stake in its China manufacturing unit to China Power New Energy Development Co. Ltd. for 3.4 billion rupees ($60 million).
  8. 8. VISION To be the technology leader in the wind sector To be in the top three wind companies in all the key markets of the world To be the global leader in providing profitable, end-toend wind power solutions To be the 'company of choice' for stakeholders
  9. 9. PRODUCTS S9X Series – 2.1 MW The latest offering from Suzlon is the S9X series comprising of S97 and S95 featuring Doubly Fed Induction Generator (DFIG). This product is specially designed and built to efficiently harness winds from low to moderate wind regimes, typically found in India. Since its launch in April 2011, the S9X turbine suite has exceeded 1000 MW (1GW) in global orders, majority of which have come from India. .
  10. 10. S88 – 2.25 MW S88 Mark II DFIG2.25 MW has been developed through a rigorous development process exclusively for the Chinese market based on specific market requirements. The product has been developed by optimizing our proven technology platform of the existing Suzlon S88_2.1 MW turbine to improve yield, performance, reliability and serviceability and is suitable for IEC Class IIA & IIB. S88– 2.1 MW S88-2.1 MW is a proven turbine platform suited for class II applications. This turbine concept is based on a robust design with pitch regulated blade operation, a 3-stage gearbox with 2200 kW rating and flexible coupling to the asynchronous induction generator. S82 - 1.5 MW The S82-1.5 MW has a well-suited ratio between rotor diameter and generator for most sites in a medium wind speed regime. The wind turbine concept is based on robust design and is efficiently handled by the Suzlon controller. These technologies are all well-known in the wind power industry and have proven themselves over time.
  11. 11. S66/S64 - 1.25 MW The S66-1.25 MW has a well-suited ratio of rotor diameter to generator for most sites in a medium wind speed regime. The wind turbine concept is based on robust design and is efficiently handled by the Suzlon controller. These technologies are all well-known in the wind power industry and have proven themselves over time. S52 - 600 kW The S52- 600 kW has a well-suited ratio between rotor diameter and generator for most sites in a medium wind speed regime. The wind turbine concept is based on robust design and efficiently handled by the Suzlon controller. The technologies used in the S52-600k are all well-known in the wind power industry and have proven themselves over time.
  12. 12. MANUFACTURING Currently Suzlon has 10 manufacturing facilities in India employing over 3,000 people with a manufacturing capacity of 3600 MW p.a. Name Production Facility Integrated Manufacturing Facility Location Chakan, Maharashtra Daman Manufactured Components Generators Rotor Blade, Nacelle, Nacelle Cover , Control Panel & Hub WTG Assembly Rotor Blade Manufacturing Facility Dhule, Maharashtra Rotor Blades Tubular Tower Integrated Manufacturing Facility Gandhidham, Gujarat Pondicherry Tubular Towers Rotor Blade, Nacelle, Nacelle Cover , Control Panel & Hub WTG Assembly Composite Engineering Cell Rotor Blade Manufacturing Facility Integrated Manufacturing Facility Control Panel Unit Vadodara, Gujarat Bhuj, Gujarat Synthetic Fiber Rotor Blades Padubidri, Karnataka Rotor Blade, WTG Assembly Coimbatore, Tamil Nadu Generators, Control Panels Transformer manufacturing facility Varnama, Vadodara Transformers
  13. 13. BOARD OF DIRECTORS The Board of Directors, as repositories of corporate powers, acts as a guardian to the company, as also the protectors of shareholders’ interests. The Board of the Company represents the finest blend of knowledge and experience. This apex body comprises the following: Tulsi Tanti Chairman V. Raghuraman Independent Director Marc Desaedeleer Independent Director Ravi Kumar Independent Director Mr. Ravi Uppal Independent Director Girish R. Tanti Non-Executive Director Rajiv Ranjan Jha Independent Director Vinod R Tanti Non-Executive Director Bharati Rao Independent Director
  14. 14. Tulsi Tanti Chairman Mr. Tulsi Tanti, a qualified Mechanical Engineer, founded and Chairman Suzlon Energy Limited. Mr. Tanti has driven Suzlon not as a business, but as a cause – contributing to the world by creating sustainable social, economic and ecological development, by using the very best of technology to help mitigate the global climate crisis. *REPower & Suzlon Energy combined Girish R. Tanti Non-Executive Director Mr. Girish R. Tanti is one of the Promoters, Director of the Company and a sibling of Mr. Tulsi Tanti. He comes with an extensive experience of 11 years in business management. Since 1995 he has played a vital role in the growth of the business, internationalization of Suzlon and building the brand Suzlon. He transformed the wind turbine manufacturing from a local dream into an international reality. Mr. Girish Tanti now works in a strategic, supervisory role as a mentor and is a member of the Board.
  15. 15. MARKET SHARE
  16. 16. ACHIEVEMENT Over 21,500 MW of installations across the world. Ranked 5th manufacturer. leading wind power equipment* Earned a global cumulative market share of 8.9%*. Suzlon in India has a cumulative installed base of over 7500 MW across 8 states, acquired over 43% (as on September 2012) cumulative market share and is the market leader for the last 14 consecutive years. Suzlon receives "Top 100 CISO Award” in year 201314. Suzlon crosses 1,000 MW in Kutch, Gujarat, thus establishing India's largest wind park. Suzlon Group crosses 20 GW in global installations. Suzlon crosses 1,000 MW in Jaisalmer, Rajasthan in India.
  17. 17. CLIENT & PROJECTS Key Customers MW* Project States Mytrah Energy (Caparo) 299.4 GJ, RJ, MH, AP Renew Power 25.20 GJ, RJ, MH DLF Group 217.5 GJ, RJ, TN Techno Electric 207.4 GJ, RJ,TN GMDC 100.5 GJ Vedanta Group (HZL) 150.3 TN ,MH,KR,RJ MSPL Group 137.5 MH, KN Malpani Group 130.6 MP, MH,KR,RJ Orient Green Power 128.8 KN, GJ,KR GSPC Group 123.9 GJ GSFC 123.4 GJ Leap Green Energy 124.5 TN CLP India 100 RJ Ruchi Soya 98.5 MP, RJ,KN,GJ,TN GACL 94.25 GJ
  18. 18. Friends Group 99.4 GJ, RJ, KR RSMML 91.3 RJ Gujarat NRE Coke 87.5 GJ Agrawal Group, Goa 79.5 KN, MH, RJ, TN Green Infra (IDFC) 64 MH, TN IOCL 48.3 GJ, AP GAIL 67.8 GJ,KR,TN Tata Power 66.7 MH Bajaj Finserv Limited 65.2 MH GN Agarwal Group 79.5 KR, MH RJ TN Altrade Group (Patnaik Minerals ) 58.25 RJ,TN Poonawalla Group 43.4 MH Dhariwal Industries 55.9 GJ,MH,RJ ITC Group 55.9 MH, TN,KR,RJ ONGC 51 GJ NALCO 50.4 AP HPCL 50.5 RJ,MH Reliance Group 45 MH State Bank Of India 15 GJ, TN, MH Nuclear Power Corporation of India Limited (NPCIL) 10 TN
  19. 19. COMPETITORS Current Price Previous Price High Price Low Price Disa India Ltd. 2650.00 2650.00 0.00 0.00 AIA Engineering Ltd. 316.95 323.30 325.85 314.20 Jost's Engineering Company Ltd. 294.00 294.00 0.00 0.00 Flat Products Equipments (India) Ltd. 257.00 260.00 260.00 257.00 Bharat Heavy Electricals Ltd. 140.40 142.60 142.75 137.90 T R F Ltd. 112.60 113.05 114.90 112.00 T I L Ltd. 112.20 110.20 112.20 106.55 Eimco Elecon (India) Ltd. 110.00 110.00 111.85 110.00 International Combustion (India) Ltd. 108.00 107.00 108.00 108.00 GMM Pfaudler Ltd. 68.70 68.00 68.70 68.25 Company Name
  20. 20. SUZLON AT A GLANCE Key Historical Facts Year of Formation : 10-Apr-1995 Chief Promoter of : Mr. Tulsi Tanti the Company Prior Business : Textiles Corporate Facts Key Suzlon Group Companies Core Business Area Corporate Headquarters Registered Office Corporate Philosophy Core Values Total Employees Group Order Book**** : Suzlon Energy Limited, REpower Systems AG, SE Forge : Wind Turbine Manufacturing & Turnkey wind power solutions provider : One Earth Campus, Pune ( Maharashtra ) India : Ahmadabad ( Gujarat ) - India : "To pursue social, economic and ecological sustainable development for our planet" : Agility, Creativity, Adding Value, Committed Integrity : over 13000 : ~$6.84 Bn
  21. 21. Global Footprint Geographical : 33 countries on 6 continents Presence Key Markets : Asia Pacific (India, China, Australia, (Installed presence) Japan, Sri Lanka, Korea) : Americas (USA, Canada, Brazil, Nicaragua) : Europe (UK, France, Germany, Spain, Portugal, Italy, Belgium, Romania, Poland, Turkey, Hungary, Austria, Bulgaria, Greece, Sweden, Netherlands, Russia, Sweden) Emerging Markets : MENA Region, South Africa, South Asian focus countries, Argentina, Chile, Mexico Manufacturing and R&D Process Number of : 30 Production Facilities Location of Global : India, Germany, Portugal, US Production Facilities Key R&D Centres : Germany (Hamburg, Osnabriick, Osterrénfeld, Rostock, Berlin), India (Pune & Vadodara), Denmark (Aarhus), Netherlands (Hengelo), China (Shanghai & Tianjin) Key Components : Generator, Rotor Blades, Control Systems, Manufactured Towers, Nacelle Assy, Hub Castings,
  22. 22. Transformers Product and Technology Product applications : Offshore & Onshore Product Classes : Sub Megawatt Class, Megawatt Class & Multi Megawatt Current Product : 600kW, 1250kW, 1500kW, 2100kW, offerings - Suzlon 2250Kw Current Product : 2000/2050 kW, 3300/3370 kW, offerings - REpower 5000/5075 kW, 6150 Kw New Product MM 100 - 1800kW (REpower) & S95/97 offerings for low 2100kW DFIG series(Suzlon) wind regimes Projects and Installation (Global)* Total Installed Global : 21,545.88 MW or 21.54 GW operational MW Total number of turbines : 13839 Wind Turbine Generators installed globally Number of project : 30 installed countries Global Cumulative : 7.6% (Ranked 5th) Market Share (2011)*** Countries over 1 GW : India (~7566 MW), USA(~3481 installations / MW), Germany (~2281 MW), France (~1385 MW), China (~1163 MW)