Suzlon

Suzlon has become India’s largest wind turbine seller once again, with a 20% share of the India market. But Gamesa has emerged as the real star after almost quadrupling its sales last year, to become a very close No.2. Others in the top 5 are also foreign turbine makers such as Enercon and General Electric (GE). The Indian wind market which had fallen precipitously in 2013 by 42% due to bad governance and misguided policies, is expected to recover to 2.3 GW this year as some of the green energy incentives were restarted. With the National Wind Energy Mission (NWEM) to be announced soon, the Indian WTG market may see good growth and companies such as GE are already starting to make investment plans in anticipation.

Suzlon has been in a tough spot over the last 5 years, due to its massive debt load and a fall in marketshare due to competition by giant Chinese WTG players such as Mingyang, Sinovel and others. Like Vestas and Gamesa, Suzlon has barely survived this downturn. However, things seem to be slightly looking up, with the company getting a reprieve from its debt holders and prospects of IPO of its Germany subsidiary REPower. The stock price has almost tripled as bankruptcy fears have receded, but the company has still got a long way to go. The company is still not profitable on net margin and has $2 billion in debt. The company’s marketshare has come down to 20% from 50% earlier, as foreign companies have established a strong foothold in India. Suzlon’s foreign markets have also dried up as investors and customers are concerned over the long term viability of Suzlon’s operations.