Suzlon Energy Ltd
ABOUT [ edit ]
Incorporated in 1995, Suzlon Energy Ltd manufactures wind turbine generators and related
components[1]
KEY POINTS [ edit ]
Business Overview:[1][2]
Company is a renewable energy solutions provider and is in the business of manufacturing, project
execution and operation and maintenance of wind turbine generators and sale of related
components. It has installed 20+ GW of wind energy in 17 countries and 111+ wind farms with a
capacity of 13,880 MW. Company client portfolio includes power utilities and electricity producers in
both the private and public sectors.
Product Profile:
a) S144 Wind Turbine Generator:[3]
Built on a new 3.x MW platform, it is one of the largest wind turbine that will target India's low wind
regimes
b) S133 Wind Turbine Generator:[4]
Built on a 2.6 to 3.0 MW platform to unlock unviable sites and deliver improved energy yield suitable
for all wind regimes
c) S120 Wind Turbine Generator:[5]
Built on a 2.1 MW platform, it is available in 3 variants and suitable for low wind sites IEC Class S
d) Classic Fleet:[6]
Company has phased out the manufacturing of its older WTG models - S111, S97, S88, S82, S66,
and S52. However, it continues to support, operate and maintain all its installed wind turbines
New Products - FY22:[7]
Company introduced a 3 MW product series which is a customizable platform that can
accommodate site-specific requirements. It installed India’s tallest wind turbine at 160 meters in
FY23 to maximize yields from low wind sites. Company also introduced the S144 wind turbine
Services & Solutions Offered:[8][9][10]
Company provides Operations & Maintenance Services for its commissioned wind energy projects
and for Multi make WTGs and provides turnkey project services and solar energy solutions.
Company's operations include design development and manufacturing of major components,
including rotor blades, tubular towers, generators, control equipment, gears and nacelles. It offers
wind project planning and execution services, including wind resource assessment, infrastructure
and power evacuation, technical planning and execution
of wind power projects
Clientele:[11]
ACC, Adani Renewables, Aditya Birla Group, Bajaj, GAIL, Hero, ITC, ONGC, Reliance, SBI, Tata,
TVS, Vedanta, etc.
Revenue Breakup - FY22:[12]
Sale of wind turbines and other parts ~73%, Income from operation and maintenance service ~27%
[13]
Geographical Revenue Split - FY22:[13]
Outside India ~6%, Domestic Sales ~94%. This consists of revenue from Europe ~1%, USA &
Canada ~2%, Other Countries ~3%
Debt Restructuring:[14][15]
In FY22, company completed refinancing exercise to reduce debt by replacing 16 lender
consortiums with 2 government-backed financial institutions viz. REC Limited and Indian Renewable
Energy Development Agency Limited
Rights Issue:[10]
Company has completed first tranche of rights issue of Rs.600 Cr in Q3FY23 and utilized majority of
same to prepay its debt obligation. Additionally, out of Rs.510 Cr received in March 2023 from 2nd
tranche of rights issue of Rs.600 Cr, company was in process of reducing the debt from REC by
Rs.316 Cr
Changes in Subsidiaries:[15]
a) Company is waiting for approval from NCLT, Chennai Bench for merger by absorption of Suzlon
Power Infrastructure Limited, a wholly owned subsidiary of the Company, with Suzlon Global
Services Limited, also a wholly owned subsidiary of the Company
b) Company is waiting for approval for Demerger by transfer and vesting of Project Execution
Business and Power Evacuation Business of Suzlon Gujarat Wind Park Limited, a step down wholly
owned subsidiary, in to Suzlon Global Services Limited
c) Suzlon Generators Limited, a subsidiary of the Company, ceased to be its subsidiary pursuant to
completion of divestment of the Company’s 75% stake in SGL to Voith Turbo Private Limited on April
7, 2022
Increase in Share Capital:[16]
In FY22, company increased its authorised share capital from Rs.9,200 Crore to Rs.11,000 Crore
Allotment & Conversion:[16][17]
On May 24th 2022, company allotted 57,14,28,572 equity shares and converted entire outstanding
value of 4.10 Lac Optionally Convertible Debentures of Rs.1 Lac each issued on preferential basis
to the existing lenders in terms of the Refinancing Proposal, aggregating Rs.4,099.18 Crore. It also
converted 4,45,301 Compulsorily Convertible Preference Shares issued by Suzlon Global Services
Limited into 4,454 equity shares, to be allotted to the Existing Lenders
Sale of Assets:[18]
Company intends to dispose one of its freehold land for Rs. 3.51 Crore. Also, it has impaired its
investments in 4 associates, which are engaged in the business of generation of electricity through
solar energy
Order Book:[19][20][21]
a) On 19th May 2023, company secured a 69 MW order for the 3 MW series from a leading Nordic
Energy Company
b) An order of 25.2 MW from Sri Kumaraswamy Mineral Exports Pvt. Ltd on 19th May 2023
c) 204 MW order from Serentica Renewables on May 22nd 2023
d) An order of 300 MW from Torrent Power Limited on May 24th 2023
Change of CEO:[22]
Mr. Ashwani Kumar resigned as Chief Executive Officer and was replaced by Mr. J.P. Chalasani on
5th April 2023
Death of Founder[23]
Tulsi Tanti, founder of Suzlon passed away on October 1, 2022
[24]
The Downfall & Recovery[24]
During 2008, the company had global ambitions and took a lot of debt for acquiring foreign
companies during the peak levels of the global economic cycle. The company was hugely indebted
and consequently company's market cap eroded by >95%.
Co. was on the verge of Bankruptcy. However, it slowly started to recover in 2014 capturing a 20%
market share of the Indian Wind Turbine Market.
