TPG, other investors buy 90% stake in Siemens Gamesa's India wind business

Renewable energy company Siemens Gamesa will divest 90 per cent of its wind business in India and Sri Lanka to private equity (PE) firm TPG, investment firm Mavco, and industry veteran Prashant Jain at an undisclosed valuation, while retaining a 10 per cent stake, the company said in a statement on Wednesday.

 

The deal, subject to regulatory approvals, will be made through the PE firm’s climate-focused platform, TPG Rise Climate, marking the first deal under its Global South Initiative, a PE strategy launched with Altérra, the world’s largest climate finance investment vehicle.

 

Both Mavco and Jain, the former chief executive officer of JSW Energy, will pick minority stakes. Siemens Gamesa will transfer around 1,000 employees and its existing manufacturing infrastructure to the new entity while continuing to license its technology.

 

 

Vinod Philip, a board member of Siemens Energy responsible for Siemens Gamesa, said: “India remains an attractive market for wind energy. After a thorough analysis, we have determined that our new partners, led by TPG, are the optimal owners to harness this potential.”

 

“The new company will serve the Indian market more effectively while also offering a long-term perspective for employees and customers. These will ensure continued support and development in this vibrant market, while Siemens Gamesa can concentrate on other core markets,” he added.

 

The move comes as India, the world’s third-largest energy consumer, pushes towards its goal of 500 gigawatts (Gw) of non-fossil fuel capacity by 2030. The country is projected to add 57 Gw of wind capacity by 2032.

 

“We believe onshore wind will continue to play an increasing role in India’s green energy mix, and this new platform will continue to accelerate the delivery of clean power to millions of Indians across the socio-economic spectrum,” said Ankur Thadani, partner and head of climate investing in Asia, TPG.

 

The new company will be chaired by Vellayan Subbiah of Mavco. Jain will serve as executive vice-chairman.