Amsterdam to power Suzlon growth

EUROPEAN EXPANSION

Company shifts several key executives to management centre in the Netherlands.

Suzlon Energy, India's largest wind turbine maker, is in the process of relocating key management executives to the company's Group Management Centre in Amsterdam, the Netherlands.

The company, now among the top-five wind turbine manufacturers in the world, may also seek to list on leading international stock exchanges in a couple of years.

"While our corporate headquarters will remain in Pune, our global business will span out from Amsterdam since that offers us locational and operational advantages in the context of the nature of our business," said Tulsi R Tanti, chairman and managing director, Suzlon Energy.

Suzlon has about 25 top executives working from its Amsterdam office. Its international marketing operations are coordinated from Aarhus, Denmark.

Suzlon acquired Hansen Transmissions International "� the Belgium-based gear box manufacturer "� for Rs 2,500 crore in May 2006, and bought German wind turbine manufacturer REpower for Rs 7,314 crore a year later to access technologies and talent as a part of its global foray.

"In India, we are the largest player and have the best talent and facilities available here. Hansen and REpower were two of the best assets available for growth outside India. Europe, which generates half of the total global wind power, holds potential for our growth," said Tanti.

However, he ruled out acquisitions in the near future.

Proximity to manufacturing, research and development (R&D) facilities of Hansen and REpower is one reason for moving the main operations to Amsterdam, Tanti explained.

Suzlon has international orders amounting to Rs 14,307 crore (for 2916 mw), as compared with orders totalling Rs 2,404 crore (441 mw) from the domestic market.

Its revenues from India contribute 46 per cent of its total turnover, but this is expected to shrink to about 20 per cent in three years in the context of the pace of the company's global business. Suzlon has targeted 40 per cent of its revenues from Europe, which now accounts for half the total wind energy installed in the world.

Tanti said the company also planned to list on major international stock exchanges, but had not yet fixed a timeframe for this.

"We will list Suzlon on major bourses at an appropriate time, but we have not decided where and when," he said.

He informed that the R&D team at REpower had developed 6 mw offshore wind turbines, the first of its kind.

The largest offshore wind turbines today are of 5 mw capacity and cost over Rs 50 crore a unit. REpower plans to manufacture 300 units of 5 mw and 6 mw turbines in three years.

Suzlon's gearbox R&D unit is located in Belgium, turbine development in India and Germany, and aerodynamics research in the Netherlands. Its manufacturing facilities are located in Belgium, China and the US.