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Energy Sector- Suzlon Energy
Hakimi Consultants
SUZLON-Company Overview
A global wind power company.A global wind power company.
Founded by Mr. Tulsi Tanti (Chairman & MD) in 1995.Founded by Mr. Tulsi Tanti (Chairman & MD) in 1995.
Headquarter- Pune, India.Headquarter- Pune, India.
Employee Strength over 14000Employee Strength over 14000
Suzlon (including REpower) is the world's third leading wind turbine supplier group in terms of market share.Suzlon (including REpower) is the world's third leading wind turbine supplier group in terms of market share.
Global Market share=9.8% (Suzlon:6.4% +REpower 3.4%)Global Market share=9.8% (Suzlon:6.4% +REpower 3.4%)
Geographical Presence in 30+ countries spread across 5 continentsGeographical Presence in 30+ countries spread across 5 continents
Manufacturing Units in 3 continents.Manufacturing Units in 3 continents.
R&D centers: Belgium, Denmark, Germany, India and NetherlandsR&D centers: Belgium, Denmark, Germany, India and Netherlands
Leading Supplier in India for the 12th year approx. 50% market shareLeading Supplier in India for the 12th year approx. 50% market share
Specialization in On Shore (Suzlon); Off Shore & On Shore (REpower)Specialization in On Shore (Suzlon); Off Shore & On Shore (REpower)
Added over 5,000 MW of wind power capacity for over 1,600 customers in India. Added over 5,000 MW of wind power capacity for over 1,600 customers in India.
Accounts for more than half of the India’s total wind turbine installationsAccounts for more than half of the India’s total wind turbine installations
Global - Industry Trends & Outcomes
Energy SecurityEnergy
Security
Climate Change & Global Warming
Climate Change & Global Warming
Cost Competitiveness & HedgingCost Competitiveness & Hedging
• Hedge against Geopolitical risks-Local and
Secured supply
• Hedge against Geopolitical risks-Local and
Secured supply
• Kyoto Protocol: Reduction of CO2 emissions
• EU Declaration: 20% from RE by 2020• US/India: 10% to 20% RPS/RPO
mandates
• Kyoto Protocol: Reduction of CO2 emissions
• EU Declaration: 20% from RE by 2020• US/India: 10% to 20% RPS/RPO
mandates
• Improvements in yield (cost/kWh)• Cost/kWh of generation: US$ 0.03-0.06• Wind Energy directly competing with conventional power
• Improvements in yield (cost/kWh)• Cost/kWh of generation: US$ 0.03-0.06• Wind Energy directly competing with conventional power
Global Wind Power ShareGlobal Wind Power Share Global Energy Generation (TWh) Global Energy Generation (TWh) Global Installed Capacity (GW)Global Installed Capacity (GW)*Source-Suzlon Q1 FY11 Result Presentation
India - Industry Trends & Outcomes
2011 2014 2018 2021
0200400600800
1000120014001600
Production(GW)Consumption (TWh)
*calculated on the basis of existing market conditions
Electricity Demand Projections in IndiaElectricity Demand Projections in India
Current Regulations and Benefits
80% Accelerated depreciation allowed in wind energy projects if they are commissioned before 30 September of the same financial year; or 40% if commissioned before 31 March. 10 year income tax holiday for wind power generation projects 100% excise duty waiver on certain wind turbine parts Reduced wheeling charges as compared to conventional energy 100% FDI investment allowed in Renewable energy generation projects Generation Based Incentive (GBI) scheme for grid interactive wind power projects -Rs 0.50 per kWh Declaration of preferential tariffs from Rs 3.39–5.32 per kWh by some states
Current Regulations and Benefits
80% Accelerated depreciation allowed in wind energy projects if they are commissioned before 30 September of the same financial year; or 40% if commissioned before 31 March. 10 year income tax holiday for wind power generation projects 100% excise duty waiver on certain wind turbine parts Reduced wheeling charges as compared to conventional energy 100% FDI investment allowed in Renewable energy generation projects Generation Based Incentive (GBI) scheme for grid interactive wind power projects -Rs 0.50 per kWh Declaration of preferential tariffs from Rs 3.39–5.32 per kWh by some states
Industry Analysis - Challenges
Decommissioning of Accelerated Depreciation Policy
Decommissioning of Accelerated Depreciation Policy
With the introduction of Direct Tax Code by 2012, accelerated depreciation policy will expire. This initiative may de-motivate the big companies of wind power because accelerated depreciation accounting method allows companies to write off investments at a faster rate than normal, which reduces tax liabilities.
With the introduction of Direct Tax Code by 2012, accelerated depreciation policy will expire. This initiative may de-motivate the big companies of wind power because accelerated depreciation accounting method allows companies to write off investments at a faster rate than normal, which reduces tax liabilities.
Inadequate grid infrastructureInadequate grid infrastructure
Inadequate grid infrastructure in states with high wind potential has slowed down the growth of wind energy industry
Inadequate grid infrastructure in states with high wind potential has slowed down the growth of wind energy industry
Irregular Tariff Changes for Wind Energy
Irregular Tariff Changes for Wind Energy
In many states, tariffs once fixed have remained unchanged over two to three years, despite significant changes in the market conditions. There is a need for a regularization of determining these prices as inadequate price levels will act as a deterrent to investment in wind based projects.
In many states, tariffs once fixed have remained unchanged over two to three years, despite significant changes in the market conditions. There is a need for a regularization of determining these prices as inadequate price levels will act as a deterrent to investment in wind based projects.
High Competition from Foreign Players
High Competition from Foreign Players
Increased competition from global players such as Vestas, Sinovel and Enercon. India, a growing wind energy markets, is likely to see increased focus from players like Siemens, GE and Indowind.
Increased competition from global players such as Vestas, Sinovel and Enercon. India, a growing wind energy markets, is likely to see increased focus from players like Siemens, GE and Indowind.
Porter’s Five Forces
Competitive Rivalry
Competitive Rivalry
Supplier Power
Supplier Power
Threat of New Entry
Threat of New Entry
Threat of SubstitutesThreat of
Substitutes
Buyer PowerBuyer Power
•Huge Capital requirement•Suzlon as a brand is preferred by clients•Advanced Technology required•Access to resources•Quality control Standards
•Huge Capital requirement•Suzlon as a brand is preferred by clients•Advanced Technology required•Access to resources•Quality control Standards
•Few potential Buyers•Sensitive to pricing•Power Purchase Structure• In India Switching cost is high•Backward integration for buyers is difficult
•Few potential Buyers•Sensitive to pricing•Power Purchase Structure• In India Switching cost is high•Backward integration for buyers is difficult
•High demand for components•Suzlon has successfully adopted Backward Integration which has reduced its dependency on suppliers.• For the suppliers forward integration is very costly
•High demand for components•Suzlon has successfully adopted Backward Integration which has reduced its dependency on suppliers.• For the suppliers forward integration is very costly
•Other renewable technologies•Price substitution from conventional sources•Although financial incentives are there for wind energy from govt.
•Other renewable technologies•Price substitution from conventional sources•Although financial incentives are there for wind energy from govt.
Threat of New Entry (Low)
Threat of New Entry (Low)
Buyer Power (Low)Buyer Power (Low)
Supplier Power ( Low to Moderate)
Supplier Power ( Low to Moderate)
Threat of Substitutes (Moderate)
Threat of Substitutes (Moderate)
•High Exit Costs•Competitive pricing•Large global players like Vestas, GE wind etc.
•High Exit Costs•Competitive pricing•Large global players like Vestas, GE wind etc.
Competitive Rivalry (Moderate to High)Competitive Rivalry (Moderate to High)
SWOT AnalysisOpportunitiesOpportunitiesWeaknessesWeaknesses
Integrated Business Model•Reduces supplier
dependency• Benefit from cost efficiencies and economies of scale• Hassle free
solutions to customers • Greater control
over execution time line, cost & quality
• Development expertise in key components• Global resource
pool for faster designing & development• MW and multi-MW WTG models and Rotor blades developed indigenously
Wind Resource mapping
Wind Resource mapping
Site Identification
Site Identification
Land Acquisition
Land Acquisition
WTG and Component
Manufacturing
WTG and Component
Manufacturing
Site Development, Infrastructure
set-up and WTG installation
Site Development, Infrastructure
set-up and WTG installation
Operations and
Maintenance Services
Operations and
Maintenance Services
End-to-End Solution Provider
Technologies & Capabilities
Acquisitions and Alliances
Market Leader and Global presence
• Among the top three WTGs companies• Global presence across 5 continents • Market leader in India
• Competitive advantage through acquisitions of REpower & Hansen
StrengthsStrengths ThreatsThreats
OpportunitiesOpportunitiesWeaknessesWeaknesses
SWOT AnalysisSWOT Analysis
WEAKNESSES
Operational inefficiencies Huge growth in assets is diminishing the growth in profits
Unsupportive Stock Prices
Unfavourable Ratings from rating agencies
Weak Strategic Financial Management Inefficient Working Capital Management
StrengthsStrengths ThreatsThreats
OpportunitiesOpportunitiesWeaknessesWeaknesses
SWOT AnalysisSWOT Analysis
Environmental AwarenessEnvironmental awareness has increased. This factor is favourable for the wind power energy as its an option to thermal power. Suzlon is the market leader in India and has a strong global presence in this therefore, there is a high growth opportunity for Suzlon in future horizon.
Government InitiativesGovt. is providing tax exemption ,accelerated depreciation tax benefits and also providing subsidies for encouraging investment in remote areas of the country to generate employment.
Untapped offshore marketsSuzlon can have advantage of covering untapped offshore market. India has a coast line of 7600 km. Offshore wind turbines generally yields 40% higher outputs than turbines on onshore sites. So offshore expansion will be profitable to Suzlon.
Steady growth in demandIncreased electricity demand, environmental concerns and depleting sources of fossil fuels have increased the demand of renewable energy sources. Hence Suzlon can leverage from this growth in demand.
StrengthsStrengths ThreatsThreats
High Competition The govt. of India has approved FDI limits up to 74%. Although Suzlon is a market leader, its
technology efficiency is not as compared to global giants like VASTAS, GE Wind etc. So this initiative can be a threat for Suzlon.
Foreign Exchange Risk Due to global presence of Suzlon, there is default risk of exchange rate fluctuations. The exchange
rates are highly fluctuating since last couple of years and hence it has become riskier for Suzlon to do business globally.
Technology Risk Suzlon has to implement the fast changing technologies to compete in the market otherwise it will
lose the competitive advantage.Hindrances / Objections to Wind Power The main objection to wind power is due to other environmental costs. Many wind parks remain
shut-down for a part of the year because of bird migration. Larger turbines produce more power, but they also take more land to operate safely and effectively. Many eco-warriors object to the installation of wind parks by lobbying the govt. to look for alternative sources of energy.
OpportunitiesOpportunitiesWeaknessesWeaknesses
SWOT AnalysisSWOT AnalysisStrengthsStrengths ThreatsThreats
Suzlon-Current Growth Strategies
Horizontal growth acceleration
through M&A
Horizontal growth acceleration
through M&AVertical IntegrationVertical Integration Improving Cost
EfficiencyImproving Cost
EfficiencyFocus on High
Growth MarketsFocus on High
Growth MarketsStrategic Focus on Customer needs
(End-to-End)
Strategic Focus on Customer needs
(End-to-End)R&D and InnovationR&D and Innovation
Knowledge AcquisitionKnowledge Acquisition
• Acquired the technical know-how through permits and buying of smaller wind technology firms.
• Acquired the technical know-how through permits and buying of smaller wind technology firms.
Resource Mobilization
Resource Mobilization
• Optimum utilization of low costs resources, labour and other infrastructural facilities
• Optimum utilization of low costs resources, labour and other infrastructural facilities
Vertical Integration
Vertical Integration
• To eliminate supply chain constraints and ensure quicker delivery to customers
• To eliminate supply chain constraints and ensure quicker delivery to customers
Mergers and AcquisitionsMergers and Acquisitions
• Boosting its core competencies
• Integrate with its operations, and
• Have manageable consolidation risks
• Boosting its core competencies
• Integrate with its operations, and
• Have manageable consolidation risks
Expanding Global PresenceAustralia - Sustainable and internationally competitive renewable energy industryUSA – It has outpaced Germany in terms of capacityChina - Favorable policies & targetsIndia – Robust domestic demand
Expanding Global PresenceAustralia - Sustainable and internationally competitive renewable energy industryUSA – It has outpaced Germany in terms of capacityChina - Favorable policies & targetsIndia – Robust domestic demand
Global AcquisitionsHansen Transmission-Develops long term growth driver in terms of wind and industrial gearbox business.REpower Systems AG-Entry into large European markets; Complimentary product portfolio - offshore technology; Capitalize on know-how and brand equity
Global AcquisitionsHansen Transmission-Develops long term growth driver in terms of wind and industrial gearbox business.REpower Systems AG-Entry into large European markets; Complimentary product portfolio - offshore technology; Capitalize on know-how and brand equity
Organizational Structure
Functional Areas
Functional Areas
Corporate services
Corporate services
ManufacturingManufacturing
Business Units
Business Units
R&DR&D
Issues with the current Organizational Structure•The employees may experience dual authority like reporting to two bosses .•The matrix structure forces the managers to spend a great deal of time in meetings, hence time consuming •This structure also requires great effort to maintain power balance.
Issues with the current Organizational Structure•The employees may experience dual authority like reporting to two bosses .•The matrix structure forces the managers to spend a great deal of time in meetings, hence time consuming •This structure also requires great effort to maintain power balance.
• Suzlon has opted Project Centered Matrix Organization which focuses on two key factors: Customer Orientation Technology Leadership
• The Product & Project Management Organization ensures that customer expectations are met.• The functional organization focuses on the technical side of the business.
• Suzlon has opted Project Centered Matrix Organization which focuses on two key factors: Customer Orientation Technology Leadership
• The Product & Project Management Organization ensures that customer expectations are met.• The functional organization focuses on the technical side of the business.
Suzlon Technology Group
Suzlon Technology Group
Product and Project Management Organization
Product and Project Management Organization
Functional Organization
Functional Organization
Proposed Organizational Structure
CMD SuzlonCMD
Suzlon
Asia Asia
Functional Groups
Functional Groups
Technical groups
Technical groups ManufacturingManufacturing
AustraliaAustralia
Functional Groups
Functional Groups
Technical groups
Technical groups ManufacturingManufacturing
EuropeEurope
Functional Groups
Functional Groups
Technical groups
Technical groups ManufacturingManufacturing
North America
North America
Functional Groups
Functional Groups
Technical groups
Technical groups ManufacturingManufacturing
South America
South America
Functional Groups
Functional Groups
Technical groups
Technical groups ManufacturingManufacturing
Currently Suzlon is operating in more than 30 countries and expanding.
In the near future as Suzlon increases its foothold to other geographies, Geographical Organizational Structure will be more efficient in terms of managing different units of Suzlon and facilitating manufacture and deliver of products.
Better quality control over various geographic locations.
It will reduce cross culture management issues.
Potential New Target Markets
Argentina, Uruguay
Argentina, Uruguay
MoroccoMorocco EgyptEgypt Japan, Philippines, Taiwan, Thailand
Japan, Philippines, Taiwan, ThailandMexicoMexico
Potential New Target Markets
• It’s wind resources are unrivalled in the Latin American region and estimated to be enough to supply the regions entire electricity demand several times over, but till date only a tiny amount of the potential, 60 MW has been developed .
• It’s wind resources are unrivalled in the Latin American region and estimated to be enough to supply the regions entire electricity demand several times over, but till date only a tiny amount of the potential, 60 MW has been developed .
ArgentinaArgentina
• High GDP growth of 8% has led to a dramatic rise in electricity consumption and approx. 30 GW of new generation capacity will be needed by 2021. The government has set a target of renewable energy from 6.4% in 2008 to 20% in 2022, with an 800 MW target for wind capacity.
• High GDP growth of 8% has led to a dramatic rise in electricity consumption and approx. 30 GW of new generation capacity will be needed by 2021. The government has set a target of renewable energy from 6.4% in 2008 to 20% in 2022, with an 800 MW target for wind capacity.
ThailandThailand
• The country has a present generation capacity of 33 MW of wind power, but the potential is estimated at around 55 GW. The government has set a target for 40% of its electricity to be generated by renewable sources by 2020, up from the current 33%.
• The country has a present generation capacity of 33 MW of wind power, but the potential is estimated at around 55 GW. The government has set a target for 40% of its electricity to be generated by renewable sources by 2020, up from the current 33%.
PhilippinesPhilippines
• The country has an outstanding wind resource, especially in the Oaxaca region. It’s installed wind capacity has increased more than 5 times since the end of 2009.
• The country has an outstanding wind resource, especially in the Oaxaca region. It’s installed wind capacity has increased more than 5 times since the end of 2009.MexicoMexico
• After the recent nuclear disaster Japan is planning to switch alternate sources of energy like wind power, solar, etc.
• Other countries such as Uruguay, Egypt, Morocco also have promising wind energy potential.
• After the recent nuclear disaster Japan is planning to switch alternate sources of energy like wind power, solar, etc.
• Other countries such as Uruguay, Egypt, Morocco also have promising wind energy potential.OthersOthers
Proposed Strategic Initiatives
Repowering and RecyclingRepowering and Recycling
Wind-Solar Hybrid SystemsWind-Solar Hybrid Systems
Gearless turbine - Direct Drive TechnologyGearless turbine - Direct Drive Technology
Blue Ocean Strategy-B2C Blue Ocean Strategy-B2C
Brand Promotion – Social MediaBrand Promotion – Social Media
Repowering and Recycling Repowering involves the replacement of old WTGs with new and more cost efficient WTGs. According to industry research, over 10,500 machines that were installed during the mid ‘80s and
‘90s will soon be replaced by larger, more efficient turbines.
84% of nacelle can be recycled84% of nacelle can be recycled93% of Tower parts can be recycled93% of Tower parts can be recycled
42 % of the rotor parts can be recycled42 % of the rotor parts can be recycled 52% of other parts can be recycled52% of other parts can be recycled
Our Recommendation Repowering is one of the growth drivers to the future market for wind power Suzlon should also initiate recycling dismantled wind turbines as well as production of more MWh
per kilogram wind turbine.
Our Recommendation Repowering is one of the growth drivers to the future market for wind power Suzlon should also initiate recycling dismantled wind turbines as well as production of more MWh
per kilogram wind turbine.
Wind-Solar Hybrid Systems
Hybrid systems make optimal use of sunlight and wind speeds - the two main resources readily available.Hybrid systems make optimal use of sunlight and wind speeds - the two main resources readily available.
These can be integrated with different energy sources such as PV or diesel generators and requires little maintenance and can be easily assembled and installed on site.These can be integrated with different energy sources such as PV or diesel generators and requires little maintenance and can be easily assembled and installed on site.
Typical applications range from house or village electrification, small enterprises to water pumping and is ideal for electrification of remote areas where reliable power supply is not available and eliminates reliance on power grids.
Typical applications range from house or village electrification, small enterprises to water pumping and is ideal for electrification of remote areas where reliable power supply is not available and eliminates reliance on power grids.
Street Lamps using Wind Solar Hybrid technology are already a growing marketStreet Lamps using Wind Solar Hybrid technology are already a growing market
Suzlon being a leading player should work on to tap the big potential the sector has been offering.Suzlon being a leading player should work on to tap the big potential the sector has been offering.
The product has scope to be commercialized on a global scale and will increase the foothold of Suzlon in foreign markets.The product has scope to be commercialized on a global scale and will increase the foothold of Suzlon in foreign markets.
• Suzlon needs to upgrade its existing turbines and also add new products to its portfolio
• Gearless wind turbines which work on direct-drive generator technology making them more efficient and cost effective to maintain.
• Conventional gearboxes used in turbines are quite vulnerable to failure
• Maintaining geared turbines for offshore installations incurs high repair costs
• Gearless turbines still a developing technology
• Huge market potential in Europe, US and Asia in the next decade.
• Suzlon needs to upgrade its existing turbines and also add new products to its portfolio
• Gearless wind turbines which work on direct-drive generator technology making them more efficient and cost effective to maintain.
• Conventional gearboxes used in turbines are quite vulnerable to failure
• Maintaining geared turbines for offshore installations incurs high repair costs
• Gearless turbines still a developing technology
• Huge market potential in Europe, US and Asia in the next decade.
Our Recommendation:Acquire a company in the domestic
market which has expertise on direct-drive generator technology and
leverage on the technology
Our Recommendation:Acquire a company in the domestic
market which has expertise on direct-drive generator technology and
leverage on the technology
Gearless turbine - Direct Drive TechnologyGearless turbine - Direct Drive Technology
Blue Ocean Strategy - B2CBlue Ocean Strategy - B2C
B-to-C Consumers
B-to-C Consumers
B-to-B Consumers
B-to-B Consumers
Vast majority of consumers today want to access more Renewable energyVast majority of consumers today want to access more Renewable energy
Surveys shows that 90 per cent of consumers globally want more renewable energy ahead of further investments in fossil fuels and nuclear plants.
Surveys shows that 90 per cent of consumers globally want more renewable energy ahead of further investments in fossil fuels and nuclear plants.
65 per cent of people claim they would like to buy products made using wind energy65 per cent of people claim they would like to buy products made using wind energy
Suzlon should target more B-to-C companies. It can mean fast-tracking of more renewable and wind energy
Suzlon should target more B-to-C companies. It can mean fast-tracking of more renewable and wind energy
Suzlon can move ahead of the competition and create a blue ocean by indirectly targeting B-to-C consumers and thus boost wind turbine sales.
Suzlon can move ahead of the competition and create a blue ocean by indirectly targeting B-to-C consumers and thus boost wind turbine sales.
Brand Promotion – Social Media
Ample evidence of the power of internet in the B2B spaceAmple evidence of the power of internet in the B2B space
92% B2B requirements commence with an online search 75% B2B decisions are finalized online 92% B2B requirements commence with an online search 75% B2B decisions are finalized online
What if something could convert this scope into business inflow for Suzlon?What if something could convert this scope into business inflow for Suzlon?
A response to this highlighting Suzlon could straight away get the business for Suzlon A response to this highlighting Suzlon could straight away get the business for Suzlon
Suzlon by being live in the Social Media can generate more business Suzlon by being live in the Social Media can generate more business
Strategy - Medium Term
Support Wind R&D in private sectors and educational institutions like IIT’s. Target firms which exceed pollution limits with its signature end-to-end services. Manufacture when business stable & market developed or consider Acquisitions Explore opportunities in African and South East Asian markets Focus on offshore markets Through forward integration venture in electricity generation through wind power Go for franchise model for transmission and distribution of wind power energy
Support Wind R&D in private sectors and educational institutions like IIT’s. Target firms which exceed pollution limits with its signature end-to-end services. Manufacture when business stable & market developed or consider Acquisitions Explore opportunities in African and South East Asian markets Focus on offshore markets Through forward integration venture in electricity generation through wind power Go for franchise model for transmission and distribution of wind power energy
Blue Chip Mantras
Lead, or aspire to lead Be #1 or #2 in the business
Global Potential
Explore the world
markets
Innovativeness 20% revenues from products
launched in the last 3 years
Ruthless focus on financial returns
Customer Centricity
Suzlon’s Wind Turbines business should aim to fit into each of the following 5 Blue-Chip Mantras:
1. Suzlon is a world class player in wind turbines.
2. ‘Global’ potential3. R&D provides innovation 4. Promising Returns5. Extremely Customer Centric
Debt Restructuring
Presently outstanding debt of USD 2.6 bn (including FCCBs of USD 654 mn) Debt repayment schedules of USD 150 mn and 283 mn for FY13E and FY14E, respectively. FCCBs worth USD 389 mn due for conversion in FY13E, USD 90 mn in FY15E, while the balance USD
175 mn in FY16E Proceeds of USD 187 mn from the Hansen stake sale of 26% and receivable of approx. USD 200 mn
from Edison, to aid the debt repayments Company to raise USD 1.1 bn via equity and debt in 2011
Suzlon has burdened itself with high debt on its balance sheet with a leverage of 1.9x with interest payments of more than INR 1000 cr annually
It should not take further obligations that might affect its financials negatively in the short term
Suzlon has burdened itself with high debt on its balance sheet with a leverage of 1.9x with interest payments of more than INR 1000 cr annually
It should not take further obligations that might affect its financials negatively in the short term
Future Projections(Rs cr) 2010-11 2010-11 Q4 2011-12 Q1 2011-12E 2012-13E 2013-14E
Revenue 18090 7372 4326 26000 29900 34385
Net Profit -1103.43 309 60 2080 2392 3782
*calculated on the basis of existing market conditions
Listing overseas in NYSE/DAX will improve the liquidity of the company’s stock and provide access to new capital markets
Publishing additional set of financial statements in accordance with US GAAP / IFRS will be more relevant to its potential US and European investors, who make up more than 50% of Suzlon's revenue.
Joint Ventures in select potential new markets instead of acquisitions which would reduce its investment cash outflows
Post complete acquisition of RE Power, Suzlon should leverage and garner maximum potential from RE and integrate RE’s operations with its global operations to increase
synergy and optimization
Reduce operational expenditures and increase efficiency to boost bottom-line
Financial Strategies
Gain competitive advantage through Corporate Social Responsibility
Forward integration in the value chain by Electricity Generation
Focus on geographical diversification of business to reduce risk
Reduce carbon footprints by focusing on addressing emissions in all phases of wind plant’s life cycle
Exploit huge opportunities in the German market where Nuclear Plants are being phased out and Wind energy share is expected to increase
Achieve Six-Sigma standards in manufacturing operations
Improvements in turbine size, efficiency, reliability and lifetime. Development of cost-effective local storage solutions such as fuel cells. Research on new cost effective technologies like Vertical Axis Turbines, Gorlov Helical Turbines . Diversify into other renewable technologies like Solar PV .
Strategic Roadmap
References
www.suzlon.com Annual Reports and Investors Presentations
http://economictimes.indiatimes.com/ http://www.bloomberg.com http://www.wikipedia.com/wiki/ Reports (Source: http://www.gwec.net/)
Indian Wind Energy Outlook 2011 Global Wind Energy Outlook 2010
Thank You
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