Suzlon targets commissioning 30% of the 20,000 MW wind capacity by FY21

Leading wind turbine maker Suzlon is looking to capture about 30 per cent of the 20,000 megawatt (MW) of wind capacity likely to be commissioned by financial year 2020-21, a senior company executive said.

According to industry estimates, with the thumb rule of Rs 650 million per MW, the 30 per cent share translates into revenues of around Rs 390 bn.

The domestic wind market is on a growth trajectory with 7,500 MW of capacity already auctioned, 10,000 MW of bids in the pipeline, and another 3,000 MW soon to be auctioned, according to Kirti Vagadia, group chief financial officer, Suzlon.

"This gives a visibility of nearly 20,000 MW of capacity getting commissioned by FY21 and we are confident of having 30 per cent share of this capacity," Vagadia told PTI.

The company at present has a 20 per cent share in the 7,500 MW wind capacity already auctioned, according to him.

He further opined that FY19 may not see huge commissioning volumes as the transition period is prolonging and project execution time has increased to 18 months from nine months due to the new bidding regime.

"This has caused temporary delay in realisations. But we are confident that the industry will grow from FY20 onwards as projects won earlier will be executed and new bids are in the pipeline," he said.

On Saturday, the company reported a net loss of Rs 5.75 bn in the June quarter, compared with a net profit of Rs 480 million in corresponding quarter last fiscal. Its revenue from operations also fell sharply to Rs 12.72 bn, from Rs 25.71 bn last year.

The companys order book currently stands at 1,134 MW and Vagadia said it is well positioned to cater to the growing market with new launches.

The firm had introduced three turbines last year including S111-140 and S120-140, both of 2.1 MW capacity each, and S128-140 with a capacity of 2.6-2.8 MW.

"We are confident that these products will give us the necessary competitive edge in the auction regime," he said.

Vagadia further noted that to ensure competitiveness under the new bidding regime, the company would remain focused on optimising costs across the board, and further reducing its working capital levels.

Suzlon, with an installed manufacturing capacity of 4,200 MW, has a strong presence across the entire wind value chain with a comprehensive range of services to build and maintain the projects, which include design, supply, installation, commissioning of the project and dedicated life cycle asset management services.

The company is currently a market leader in the country with over 11.9 gigawatt (GW) of installed capacity and global installation of 17.9 GW spread across 17 countries in Asia, Australia, Europe, Africa and the Americas.