Suzlon Energy Ltd: Suzlon Energy Ltd: Making Foray Making Foray

AbroadAbroad

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Presented byPresented byAnupam IyerAnupam Iyer

Arjun RamakrishnanArjun RamakrishnanBhoomika DiwanBhoomika DiwanChandni AgarwalChandni Agarwal

Manish SinghManish SinghTarun RustagiTarun Rustagi

Presentation FlowPresentation Flow• Wind Energy Market• Windmill Turbine Generators - Introduction• Suzlon Energy Ltd

– Introduction– Products & Services

• Vertical Integration– Introduction– Varieties– Examples

• Windmill Turbine Generators– Components– Manufacturing Operations

• Suzlon Energy Ltd– Group Companies

• Advantages of Vertical Integration• Differentiating Factor• Problems & Challenges• Future Strategy 2

Wind Energy MarketWind Energy Market

• Security of Supply• Economic Considerations• Environmental Concerns• Significant Facts:– 2000-2010: Wind power generation grown by more than ten

times– Global wind energy market to reach 240GW by 2012– Competitive and lucrative as long as Oil Barrel costs > $40

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Wind Energy MarketWind Energy Market

Windmill Turbine Generators• Blades

aerodynamically similar to airplane wings

• Mounted 30m or above to take advantage of faster and less turbulent winds. The higher, the better.

• Have emergency shut-off in case of storms

• Technological trends increasing in

complexity

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Unconventional Designs

Suzlon Energy Ltd: A Brief Suzlon Energy Ltd: A Brief

• Est. 1995 by Tulsi Tanti• Headquarters in Pune. Offices across 5 continents. • 8th largest manufacturer in the world. Largest in India.• In terms of net worth, world's most valuable wind energy

company, though market value lesser than smaller companies

• Operates largest wind park - 584 MW - Tamil Nadu• Operates and maintains Suzlon One Earth• Latest contract is by Caparo Energy for $1.28 billion

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Suzlon Energy Ltd: Products & Suzlon Energy Ltd: Products & ServicesServices• Windmill Electricity Generators – S88 Mark II - 2.25 MW– S88 - 2.1 MW– S82 – 1.5 MW

•  Services– Wind Energy Estimation– Land Sourcing and Permitting– Infrastructure Development – Installation and Commissioning– Operation and Maintenance

– S66 - 1.25 MW– S64 – 1.25 MW– S52 – 600 kW

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Vertical Integration: Introduction

Vertical integration is the degree to which a firm owns its downstream suppliers and its upstream buyers.

Contrary to horizontal integration, which is a consolidation of many firms that handle the same part of the production process, vertical integration is typified by one firm engaged in different parts of production

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Vertical Integration: Varieties

A company exhibits backward vertical integration when it controls subsidiaries that produce some of the inputs used in the production of its products.

A company tends toward forward vertical integration when it controls distribution centers and retailers where its products are sold.

Balanced vertical integration means a firm controls all of these components, from raw materials to final delivery.

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Suzlon’s Vertical Integration

•Designing & Developing of Rotor blades in Netherlands

•Acquisition of Hansen Transmission, Belgium – Manufactures turbines gear box

•Acquisition of RE power, Germany – Manufactures high capacity turbines

•Manufactures generators, panels, and towers

•R&D and technology centers, manufacturing facilities and service support centers spread across the globe

•Delivers projects through its project management and installation consultancy, and operations & maintenance services

Windmill Turbine Generators: Windmill Turbine Generators: ComponentsComponents

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Manufacturing OperationsManufacturing Operations•  Production– Introduction– rotor blades– nacelles– nacelle covers– nose cones– control panels– control systems– hubs– generators

– panels – tubular towers– gear boxes

(Hansen Transmission)– offshore turbines

(REPower)– Slip Ring Generators

(Elin EBG Motoren GmbH)

•  Services– WTG Assembly– Retrofitting of blades for

clients– Delivery and service of

wind farms 

• R&D: Germany/India

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Suzlon CompaniesLocation Company Products

India    

Gandhidham Suzlon Structures Pvt Ltd Tubular Towers

Bhuj Suzlon Energy Ltd Rotor Blades

Vadodara SCL CEC

Daman Suzlon Energy Ltd Rotor Blades, WTG Assembly, Nacelles, Nacelle Covers, Control Systems, Nose Cones

Dhule Suzlon Energy Ltd Rotor Blades, Tubular Towers

Chakan Suzlon Generators Ltd Generators

Padubidri Suzlon Wind International Ltd Nacelles, Nacelle Covers, Nose Cones

Padubidri SE Composites Ltd Rotor Blades

Coimbatore SE Electricals Ltd Generators, Control Systems

Pondicherry Suzlon Energy Ltd Rotor Blades, Nacelles, Nacelle Covers, Control Systems, Hubs

     

China    

Tianjin Suzlon Energy Tianjin LtdRotor Blades, Nacelles, Nacelle Covers, Control Panels, Hubs, Generators, Nose Cones

     

USA    

Pipestone Suzlon Rotor Corp Rotor Blades, Nose Cones

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Advantages of Vertical IntegrationAdvantages of Vertical Integration

• No gaps in supply chain• No bottlenecks in supply chain due to demand-supply

mismatch • Low logistics cost• Dedicated delivery capability• Flexible response to local markets• Expansion into markets (E.g.: REPower - Euro Markets)• Supply Chain synergy• Total solutions

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Differentiating FactorDifferentiating Factor

• Turnkey (end-to-end) solutions• Vertical Integration• Global Integration• Focus on QM and Health, Safety and Environment • Customized products as per needs of individual

customers • Low cost producer, top-class design

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Problems and ChallengesProblems and Challenges

• Declining consolidated sales• Declining share value and public opinion • US economy slowdown• Need to manufacture wider range of turbines• New players entering a lucrative market

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Future Strategy

• No further need for acquisitions• Consolidate global businesses• Product innovation • Cost reduction• To be order winner

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Questions?Questions?