Suzlon plans big India push

INDIA: Suzlon has revealed plans to expand in India, with the installation of 2GW of projects and construction of new manufacturing facilities.

The company is planning 2GW for Madhya Pradesh
The company is planning 2GW for Madhya Pradesh

The Indian manufacturer's chairman Tulsi Tanti said that the company will build the projects in the state of Madhya Pradesh over the next five years.

In order to achieve this, Suzlon also said it plans to build turbine factories in the state to provide the necessary manufacturing capacity.

Speaking at the Global Investors Summit in Indore, Tanti said that Suzlon will develop the projects itself with a view to handing them on to independent power producers.

When contacted by Windpower Monthly, Suzlon said that it did not yet know how it was going to finance the expansion, with a spokesperson saying "it is too premature to comment on financing".

It is unlikely that Suzlon will be able to turn to rupee debt considering that the firm is struggling with a total debt of INR 158 billion ($2.6 billion) as of September 2013, which was up from INR 132 billion a year earlier.

Suzlon is aiming to raise as much as $600 million by listing part of its German subsidiary Senvion on the London Stock Exchange. Tanti said that it will take a minimum of 25% of the company to the market within the next six months. This will free up money that could potentially be used for expansion in India.

While Suzlon posted improved results for the first quarter of the year, with increased revenues, it is still making a significant loss, and actually saw its order book shrink over the period.

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