Suzlon Energy Ltd., the Indian wind-turbine maker that defaulted on bonds, expects to more than double installations in its home market this fiscal year before a planned listing of its German unit.
Chairman Tulsi Tanti said his top priority was to see the Suzlon group emerge more competitive from debt restructuring as it seeks by March to re-list its offshore turbine unit, Senvion SE, on the London Stock Exchange. Restoring Suzlon’s dominance in India, consolidating group businesses and replacing high-cost rupee debt with lower-cost overseas debt were part of this year’s plan, Tanti said in a phone interview.
“The group will become extremely competitive in the market place through consolidation of group businesses,” Tanti said. “It’s not the current Senvion honestly that we’ll take to the capital markets.”
Prime Minister Narendra Modi’s government this month restored a wind-farm tax benefit after a two-year hiatus to lift Asia’s second-biggest wind market out of a slump. Bloomberg New Energy Finance raised its 2014 India projection by 13 percent to 2,600 megawatts of installations on the decision, according to Shantanu Jaiswal, a Delhi-based wind analyst for the research company.
India may install 3,000 megawatts in the fiscal year ending March, of which Suzlon expects to grab about 1,000 megawatts, Tanti said. The Pune-based manufacturer supplied 403 megawatts last year for a record-low 20 percent share, according to data from the Indian Wind Turbine Manufacturers Association.
By the second half, Suzlon expects to see orders from customers seeking to claim accelerated depreciation tax benefits by building wind farms, Kirti Vagadia, group head of finance, said in an interview last week.