3C REPORT ON

SUZLON ENERGY LIMITED

SUBMITTED BY

GAJENDRA SINGH RATHORE

ROLL NO –50

SECTION-A

YEAR/SEMESTER-3RD /5TH

DEPARTMENT OF ELECTRICAL ENGINEERING

G.H. RAISONI COLLEGE OF ENGINEERING AND MANAGEMENT

SESSION 2013-2014

INDEX INTRODUCTION HISTORY VISION PRODUCT MANUFACTURING BOARD OF DIRECTORS MARKET SHARE ACHIEVEMENTS CLIENTS & PROJECT COMPETITORS SUZLON AT A GLANCE

INTRODUCTIONSuzlon Energy Limited is an Indian multinational wind power company based in Pune, India. In terms of market share, in 2012 the company was the fifth largest wind turbine manufacturer by cumulative installed capacity worldwide with approaching above 22,000 megawatts of installations in 32 countries. Suzlon consists of Suzlon Energy Limited (SEL), India, (The Company) and 84 subsidiaries (12 Indian and 72 international). Suzlon is present in 33 countries across six continents: North and South America, Asia, Australia, Europe, and Africa.

With headquarters in Pune, it operates several manufacturing facilities in India, at places such as Coimbatore,  Padubidri,  Vadodara, Daman,  Dhule, Chakan,  Gandhidham  and  Pondicherry. It also operates facilities in Mainland China, Germany and Belgium. The company is listed on the National Stock Exchange of India and on the Bombay Stock Exchange.

Suzlon is a vertically integrated wind power company. Suzlon delivers end-to-end wind power solutions from assembly, installation to commissioning .The company manufactures blades, generators, panels, and towers in-house and state-of-the-art large or offshore turbines through its subsidiary REpower.

Suzlon has design and R&D teams and facilities in India, Germany, Denmark and The Netherlands to retrofit blades for clients. The international sales business of Suzlon is managed out of Aarhus, Denmark, while its global management office is in Vadodara, India.

Suzlon Energy Limited (SEL), India’s largest wind turbine manufacturer, announced crossing 8,000 megawatts of cumulative installations in India, underlining the strong momentum in India's fast growing wind energy market. This cumulative power generation capacity has the potential to light up four million homes annually. Suzlon has cumulatively added over 7,600 megawatts of wind power capacity for over 1,700 customers in India across 40 sites in eight States. Suzlon accounts for nearly half of the country’s total wind installations.

HISTORY

Suzlon's story began in 1995 when founder Tulsi Tanti was managing a 20-employee textile company. Due to the local infrastructure's erratic availability of electricity and because of the rising costs of power, the highest business expenditure after the raw materials was electricity.

Suzlon was founded by Tulsi Tanti in 1995, when he was working in a family-owned textile company. In that year, India's shaky power grid and the rising cost of electricity offset any profits the company would make. After providing electricity for his own company, Tanti realized that other companies in India could also greatly benefit from being sold wind power technology and advised on its use. With the help of some of his friends of Rajkot, he moved into wind energy production as a way to secure the textile company's energy needs, and founded Suzlon Energy. Suzlon adopted a business model wherein clients would be responsible for 25% of the up-front capital investment and Suzlon would arrange the remaining 75% on loan. Initially banks were hesitant to fund loans for this model but by 2008 40-50 Indian banks were financing wind power projects for Suzlon clients.

In 2001, Tanti sold off the textile business, so he could focus on the development of his wind energy business. In 2009, Suzlon is still actively run by Tulsi Tanti, now in the role of Chairman.

In 2003, Suzlon got its first sale in USA, with an order from DanMar & Associates to supply 24 turbines in southwestern Minnesota. Also in 2003 Suzlon set up an office in Beijing.

Suzlon Rotor Corporation in 2006 began producing the blades in Pipestone, Minnesota in the United States. Among its clients is Wind Capital Group.

In the year 2006, Suzlon reached a definitive agreement for acquisition of Belgium firm Hansen Transmissions, specialising in gearboxes for wind turbines, for $565 million. In 2007, the company purchased a controlling stake in Germany's REpower which valued the firm at US$ 1.6 billion.

In June 2007, Suzlon had signed a contract with Edison Mission Energy (EME) of US for delivery of 150 wind turbines of 2.1 megawatts in 2008 and a similar volume to be delivered in 2009. EME had an option not to purchase the 150 turbines due to be delivered in 2009, which it has chosen to exercise.

In November 2009, the company decided to sell 35% stake of Hansen for $370 million as part of its debt restructuring program, through placing new shares. It appointed Bank of America Merrill Lynch and Morgan Stanley as the managers and book runners for the same.

In January 2011, Suzlon received an order worth US$1.28 billion for building 1000 megawatts of wind energy projects from the Indian branch of the Lord Swaraj Paul-owned Caparo Energy Ltd.

In May 2011, Suzlon announced returning to profitability after the financial crisis of 2009 

In October 2011, Suzlon sold its remaining 26.06% stake in Hansen Transmissions International NV to ZF Friedrichshafen AG for  890 crore (US$140 million).  In the same month, it also achieved full control of its German subsidiary Repower by acquiring the remaining 5% stake held by minority shareholders that resisted the takeover. The takeover was completed through the squeez-out procedure by paying EUR 63 Million. 

It has to redeem 500 million worth of FCCB’s (foreign currency convertible bonds) in 2012 in tranches of 300 million in June and 200 million in October respectively. In line with the previously announced strategy to dispose of non-critical group assets to reduce long-term debt, Suzlon Chairman said that Suzlon Energy, will sell stake in its China manufacturing unit to China Power New Energy Development Co. Ltd. for 3.4 billion rupees ($60 million).

VISION

To be the technology leader in the wind sector To be in the top three wind companies in all the key

markets of the world To be the global leader in providing profitable, end-to-

end wind power solutions To be the 'company of choice' for stakeholders

PRODUCTS

S9X Series – 2.1 MW

The latest offering from Suzlon is the S9X series comprising of S97 and S95 featuring Doubly Fed Induction Generator (DFIG). This product is specially designed and built to efficiently harness winds from low to moderate wind regimes, typically found in India. Since its launch in April 2011, the S9X turbine suite has exceeded 1000 MW (1GW) in global orders, majority of which have come from India.

.

S88 – 2.25 MW

S88 Mark II DFIG2.25 MW has been developed through a rigorous development process exclusively for the Chinese market based on specific market requirements. The product has been developed by optimizing our proven technology platform of the existing Suzlon S88_2.1 MW turbine to improve yield, performance, reliability and serviceability and is suitable for IEC Class IIA & IIB.

S88– 2.1 MW

S88-2.1 MW is a proven turbine platform suited for class II applications. This turbine concept is based on a robust design with pitch regulated blade operation, a 3-stage gearbox with 2200 kW rating and flexible coupling to the asynchronous induction generator.

S82 - 1.5 MW

The S82-1.5 MW has a well-suited ratio between rotor diameter and generator for most sites in a medium wind speed regime. The wind turbine concept is based on robust design and is efficiently handled by the Suzlon controller. These technologies are all well-known in the wind power industry and have proven themselves over time.

S66/S64 - 1.25 MW

The S66-1.25 MW has a well-suited ratio of rotor diameter to generator for most sites in a medium wind speed regime. The wind turbine concept is based on robust design and is efficiently handled by the Suzlon controller. These technologies are all well-known in the wind power industry and have proven themselves over time.

S52 - 600 kW

The S52- 600 kW has a well-suited ratio between rotor diameter and generator for most sites in a medium wind speed regime. The wind turbine concept is based on robust design and efficiently handled by the Suzlon controller. The technologies used in the S52-600k are all well-known in the wind power industry and have proven themselves over time.

MANUFACTURING

Currently Suzlon has 10 manufacturing facilities in India employing over 3,000 people with a manufacturing capacity of 3600 MW p.a.

Name

Location Manufactured Components

Production Facility Chakan, Maharashtra GeneratorsIntegrated Manufacturing Facility

Daman Rotor Blade, Nacelle, Nacelle Cover , Control Panel & Hub WTG Assembly

Rotor Blade Manufacturing Facility

Dhule, Maharashtra Rotor Blades

Tubular Tower Gandhidham, Gujarat Tubular TowersIntegrated Manufacturing Facility

Pondicherry Rotor Blade, Nacelle, Nacelle Cover , Control Panel & Hub WTG Assembly

Composite Engineering Cell Vadodara, Gujarat Synthetic FiberRotor Blade Manufacturing Facility

Bhuj, Gujarat Rotor Blades

Integrated Manufacturing Facility

Padubidri, Karnataka Rotor Blade, WTG Assembly

Control Panel Unit Coimbatore, Tamil Nadu Generators, Control Panels

Transformer manufacturing facility

Varnama, Vadodara Transformers

BOARD OF DIRECTORSThe Board of Directors, as repositories of corporate powers, acts as a guardian to the company, as also the protectors of shareholders’ interests. The Board of the Company represents the finest blend of knowledge and experience.

This apex body comprises the following:

Tulsi TantiChairman

Girish R. TantiNon-Executive Director

V. RaghuramanIndependent Director

Rajiv Ranjan JhaIndependent Director

Marc DesaedeleerIndependent Director

Vinod R TantiNon-Executive Director

Ravi KumarIndependent Director

Bharati RaoIndependent Director

Mr. Ravi UppalIndependent Director

Tulsi TantiChairman

Mr. Tulsi Tanti, a qualified Mechanical Engineer, founded and Chairman Suzlon Energy Limited. Mr. Tanti has driven Suzlon not as a business, but as a cause – contributing to the world by creating sustainable social,

economic and ecological development, by using the very best of technology to help mitigate the global climate crisis.*REPower & Suzlon Energy combined

Girish R. Tanti

Non-Executive Director

Mr. Girish R. Tanti is one of the Promoters, Director of the Company and a sibling of Mr. Tulsi Tanti. He comes with an extensive experience of 11 years in business management. Since 1995 he has played a vital

role in the growth of the business, internationalization of Suzlon and building the brand Suzlon. He transformed the wind turbine manufacturing from a local dream into an international reality. Mr. Girish Tanti now works in a strategic, supervisory role as a mentor and is a member of the Board.

MARKET SHARE

ACHIEVEMENT

Over 21,500 MW of installations across the world.

Ranked 5th leading wind power equipment* manufacturer.

Earned a global cumulative market share of 8.9%*.

Suzlon in India has a cumulative installed base of over 7500 MW across 8 states, acquired over 43% (as on September 2012) cumulative market share and is the market leader for the last 14 consecutive years.

Suzlon receives "Top 100 CISO Award” in year 2013-14.

Suzlon crosses 1,000 MW in Kutch, Gujarat, thus establishing India's largest wind park.

Suzlon Group crosses 20 GW in global installations.

Suzlon crosses 1,000 MW in Jaisalmer, Rajasthan in India.

CLIENT & PROJECTS

Key Customers MW* Project States

Mytrah Energy (Caparo) 299.4 GJ, RJ, MH, AP

Renew Power 25.20 GJ, RJ, MH

DLF Group 217.5 GJ, RJ, TN

Techno Electric 207.4 GJ, RJ,TN

GMDC 100.5 GJ

Vedanta Group (HZL) 150.3 TN ,MH,KR,RJ

MSPL Group 137.5 MH, KN

Malpani Group 130.6 MP, MH,KR,RJ

Orient Green Power 128.8 KN, GJ,KR

GSPC Group 123.9 GJ

GSFC 123.4 GJ

Leap Green Energy 124.5 TN

CLP India 100 RJ

Ruchi Soya 98.5 MP, RJ,KN,GJ,TN

GACL 94.25 GJ

Friends Group 99.4 GJ, RJ, KR

RSMML 91.3 RJ

Gujarat NRE Coke 87.5 GJ

Agrawal Group, Goa 79.5 KN, MH, RJ, TN

Green Infra (IDFC) 64 MH, TN

IOCL 48.3 GJ, AP

GAIL 67.8 GJ,KR,TN

Tata Power 66.7 MH

Bajaj Finserv Limited 65.2 MH

GN Agarwal Group 79.5 KR, MH RJ TN

Altrade Group (Patnaik Minerals ) 58.25 RJ,TN

Poonawalla Group 43.4 MH

Dhariwal Industries 55.9 GJ,MH,RJ

ITC Group 55.9 MH, TN,KR,RJ

ONGC 51 GJ

NALCO 50.4 AP

HPCL 50.5 RJ,MH

Reliance Group 45 MH

State Bank Of India 15 GJ, TN, MH

Nuclear Power Corporation of India Limited (NPCIL)

10 TN

COMPETITORS

Company Name Current PricePrevious

PriceHigh Price Low Price

Disa India Ltd. 2650.00 2650.00 0.00 0.00

AIA Engineering Ltd. 316.95 323.30 325.85 314.20

Jost's Engineering Company Ltd. 294.00 294.00 0.00 0.00

Flat Products Equipments (India) Ltd. 257.00 260.00 260.00 257.00

Bharat Heavy Electricals Ltd. 140.40 142.60 142.75 137.90

T R F Ltd. 112.60 113.05 114.90 112.00

T I L Ltd. 112.20 110.20 112.20 106.55

Eimco Elecon (India) Ltd. 110.00 110.00 111.85 110.00

International Combustion (India) Ltd. 108.00 107.00 108.00 108.00

GMM Pfaudler Ltd. 68.70 68.00 68.70 68.25

SUZLON AT A GLANCE

Key Historical FactsYear of Formation : 10-Apr-1995  

Chief Promoter of the Company

: Mr. Tulsi  Tanti 

Prior Business : Textiles 

Corporate Facts   Key Suzlon Group Companies 

: Suzlon Energy Limited, REpower Systems AG, SE Forge 

Core Business Area 

: Wind Turbine Manufacturing & Turnkey wind power solutions provider 

Corporate Headquarters 

: One Earth Campus, Pune ( Maharashtra ) - India 

Registered Office  : Ahmadabad ( Gujarat ) - India Corporate Philosophy

: "To pursue social, economic and ecological sustainable development for our planet"

Core Values : Agility, Creativity, Adding Value, Committed Integrity

Total Employees : over 13000Group Order Book****

: ~$6.84 Bn

Manufacturing and R&D Process

 

Number of Production Facilities

: 30

Location of Global Production Facilities

: India, Germany, Portugal, US

Key R&D Centres : Germany (Hamburg, Osnabriick, Osterrénfeld, Rostock, Berlin), India (Pune & Vadodara), Denmark (Aarhus), Netherlands (Hengelo), China (Shanghai &

Global Footprint 

Geographical Presence

: 33 countries on 6 continents

Key Markets (Installed presence)

: Asia Pacific (India, China, Australia, Japan, Sri Lanka, Korea): Americas (USA, Canada, Brazil, Nicaragua): Europe (UK, France, Germany, Spain, Portugal, Italy, Belgium, Romania, Poland, Turkey, Hungary, Austria, Bulgaria, Greece, Sweden, Netherlands, Russia, Sweden)

Emerging Markets focus

: MENA Region, South Africa, South Asian countries, Argentina,Chile, Mexico 

Tianjin)Key Components Manufactured

: Generator, Rotor Blades, Control Systems, Towers, Nacelle Assy, Hub Castings, Transformers

Projects and Installation (Global)*Total Installed Global operational MW

: 21,545.88 MW or 21.54 GW

Total number of turbines installed globally

: 13839 Wind Turbine Generators

Number of project installed countries

: 30

Global Cumulative : 7.6% (Ranked 5th)

Product and TechnologyProduct applications : Offshore & OnshoreProduct Classes : Sub Megawatt Class, Megawatt Class &

Multi MegawattCurrent Product offerings - Suzlon

: 600kW, 1250kW, 1500kW, 2100kW, 2250Kw

Current Product offerings - REpower

: 2000/2050 kW, 3300/3370 kW, 5000/5075 kW, 6150 Kw

New Product offerings for low wind regimes

MM 100 - 1800kW (REpower) & S95/97 2100kW DFIG series(Suzlon)

Market Share (2011)***Countries over 1 GW installations /

: India (~7566 MW), USA(~3481 MW), Germany (~2281 MW), France (~1385 MW), China (~1163 MW)