Gamesa’s Top India Wind Rank Supported by Siemens Merger Finance

  • Merger strengthens Gamesa balance sheet in India, CEO says
  • Gamesa sees merger reducing development, construction risks

Gamesa Corp. Tecnologica SA is reinforcing its top spot in India’s wind turbine market with the help of easier financing that will follow its decision to merge with Siemens AG, a top executive said.

The merger with Siemens will “considerably strengthen the balance sheet” of Gamesa in India, said Ramesh Kymal, the Spanish company’s chief executive in the south Asian country, in an interview in New Delhi. The June deal combining the two companies, expected to be completed by March, will create one of the world’s biggest wind-power manufacturers.

“When the balance sheet is stronger, it could mean that financing for our projects becomes easier,” Kymal said. A stronger development pipeline and faster growth may strengthen the company’s market position, he said.

Gamesa is already the largest wind turbine manufacturer in India by market share, according to the local wind-industry association. The company supplied about a third of the record 3.4 gigawatts of new capacity installed in the last financial year ending in March. Better access to financing will allow Gamesa to keep project-work steady during lulls in demand, Kymal said.

“We can look at a better valuation as we’re doing away with a lot of risks of construction and project development,” he said, adding that this could help the company even out production instead of having seasonal peaks and dips.

Most Indian wind turbine makers including the top three -- Gamesa, Suzlon Energy Ltd. and Inox Wind Ltd -- currently operate turnkey business models that require more than manufacturing. Contracts usually include land acquisition, wind-resource assessments, power-infrastructure upgrades and installation.

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