Industry profile

The wind power industry is the industry involved with the design, manufacture, construction,

and maintenance of wind turbines. Although the wind power industry is small compared to

those of the conventional power generation technologies (hydro, coal, natural gas, and

nuclear), it is growing at a much faster rate (25% per year, from 2002 to 2007)

The modern wind power industry began in 1979 with the serial production of wind turbines

by Danish manufacturers Kuriant, Vestas, Nordtank, and Bonus. Initially, most of these early

turbines were installed in western Denmark. California, USA experienced a wind power

boom from 1982 to 1986 when thousands of Danish and American wind turbines were

installed in massive arrays. India got involved in wind power in the mid-1980s as well, while

Germany and Spain gradually developed domestic wind power industries starting in the early

1990s.

The wind power industry is currently undergoing a period of rapid globalization and

consolidation, with much of the recent wind farm development occurring outside the older

established markets. Several large companies with market capitalizations greater than the

entire wind power industry itself (General Electric, Siemens, BP) are now making large

investments in wind power. To meet a global wind turbine supply shortage, start-up wind

turbine manufacturers are still appearing and ramping up the production of their new wind

turbine models as quickly as possible.

Wind turbine manufacturers design, test, manufacture, and assist with the operation and

maintenance of wind turbines. Important choices facing them include turbine design

(generator type, gearbox vs. gear-less, materials) and how much control to maintain over

component supplies (internal vs. external). They must be concerned with maintaining their

extensive fleets of operating turbines while at the same time developing newer and ever-

larger models. The largest wind turbine manufacturers are based in Denmark, Germany,

Spain, India, and USA.

Wind farm developers develop and sometimes own and operate wind farms. This involves

purchasing or leasing land, installing meteorological equipment to quantify the wind

resource, and securing transmission, power sales, turbine supply, construction, and financing

agreements. Some small wind farm developers, lacking the "muscle" and financing necessary

to secure major turbine supply contracts, will develop a project in order to "flip" it and sell to

larger developers such as wind power managing owners.

Wind farm construction companies construct and sometimes assist with the operation and

maintenance of wind farms.

Wind farm finance companies sell loans and other financial products to wind farm developers

and wind turbine manufacturers. Most of these companies are large banks with experience in

providing financing to other large industrial projects.

Wind power consulting companies offer consulting services to the wind power industry,

including wind turbine design and certification, technical Due Diligence (or acting as the

"Owner's engineer"), wind resource maps, wind resource assessments, wind power

forecasting, and wind turbine power performance testing. Most of these companies maintain

financial independence (no ownership stake) from wind farm projects in order to guarantee

unbiased service to their clients.

Wind power research organizations provide research and development to the wind power

industry. They are usually part of government agencies or universities and conduct research

on aspects of wind power that are currently cost-prohibitive for the private industry to invest

in.

Wind power managing owners are responsible for the operation and maintenance and

administration of wind farms which they develop or acquire. All or part of these

responsibilities may be subcontracted to third parties. Wind power managing owners, along

with other financing parties and equity partners, typically sell the electricity generated from

wind farms to public utilities under long-term Power Purchase Agreements (PPAs) where

they receive a fixed price for the electricity.

As of 2010, Vestas (from Denmark) is the world's top wind turbine manufacturer in terms of

percentage of market volume, and Sinovel (from China) is in second place. Together Vestas

and Sinovel delivered 10,228 MW of capacity in 2010, and their market share was 25.9

percent. GE Energy (USA) was in third place, closely followed by another Chinese

supplier, Goldwind. German Enerconranks fifth in the world, and is followed by Indian-

based Suzlon at number six

Company profile

Suzlon Energy Ltd is India's first home-grown wind technology company and the fifth largest

wind power supplier. The company is engaged in the business of design, development,

manufacturing and supply of wind turbine generators (WTGs) of a range of capacities and

their components. Their operations relate sale of WTGs and allied activities, including

sale/sub-lease of land, infrastructure development income; sale of gear boxes, and sale of

foundry and forging components. Others primarily include power generation operations. The

company is headquartered in Pune. They have their presence in 32 countries namely, India,

China, Sri Lanka, Japan, South Korea, Canada, USA, Brazil, Chile, Nicaragua, Belgium,

Bulgaria, Denmark, Germany, Italy, Romania, The Netherlands, Turkey, Spain, Sweden,

United Kingdom, Austria, Czech Republic, France, Greece, Hungary, Poland, Portugal,

Russia, Switzerland, Australia, South Africa. The company's manufacturing facilities are

located at Maharashtra, Pondicherry, Gujarat and Daman in India; Tianjin and Inner

Mongolio in China; Trampe, Husum and Bremerhaven in Germany; and Oliveria de Frades

and Vagos in Portugal. Their R&D facilities are located at Denmark, Germany, India, The

Netherlands and China. Suzlon Energy Ltd was incorporated in the year 1995. The company

began with a wind farm project in Gujarat with a capacity of just 3 MW. In the year 1997,

Det Norse Veritas (DNV) certified Suzlon Group with the coveted ISO 9001/2 certification.

In the year 1998, the company formed Suzlon Developers Pvt Ltd and Suzlon Wind Farm

Services Pvt Ltd. They bagged their first order of Ghodawat Pan Masala Products in the state

of Maharashtra. They made their debut entry in Maharashtra by commissioning their first

Wind Turbine in Maharashtra. In the year 1999, the company commissioned their first wind

turbine in Tamil Nadu. The company was awarded the prestigious contract from Tata Finance

Ltd and Bajaj Auto Ltd, the turnkey wind farm project in Maharashtra. In the year 2000, the

company commissioned their first 50 MW at Vankhusavade, Maharashtra and formed the

Suzlon Green Power Limited. Also, the company's first megawatt wind turbine generator was

commissioned for Niskalp Investments, a Tata Group Company. In the year 2001, the

company started one wholly owned subsidiary company under the name of AE Rotor

Holding B.V; The Netherlands. In October 2001, they commenced Suzlon Wind Energy

Corp, USA a wholly owned subsidiary of the company. In November 2001, they formulated

Suzlon Energy GmbH, Germany, a wholly owned subsidiary of the company. In the year

2003, the company commissioned their first Wind Turbine in USA. They opened their

representative office in Beijing. Composite Centre International conferred the Export

Excellence Award to the company at the International Exposition India Composites 2003 at

Hyderabad. In the year 2004, the company set up a wholly owned subsidiary company in

Australia under the name of Suzlon Energy Australia Pty Ltd. In March 2004, the company

set up their maiden imprint in the state of Karnataka by commissioning 3.75 MW Wind

Power Project for MSPL, a major mining company. In August 10, 2005, the company

incorporated Suzlon Rotor Corporation, USA. The company bagged the maiden Korean

Order by signing the contract for 14.7 MW WPP for Jeju Wind Farm Project by tying up with

Unison Co. Ltd, Korea's largest and most experienced developer. In the year 2006, the

company signed the Framework Agreement with Edison Mission Group to supply 157.5 MW

whereby securing a major International repeat Order. This consists of 75 m/cs of the S-88 -

2.1 MW turbines. In March 2006, the company made a strategic acquisition of Hansen

Transmission International NV, Belgium one of the world’s largest wind energy & industrial

Gearbox manufacturer through their subsidiary Rotor Holding B.V. In the year 2006, the

company made their maiden foray in Australia by signing the contract to build Australia's

largest Wind Farm Project for Australia Gas & Light (AGL) Company. Also, they entered the

European market by bagging the Portugal Order and signed the contract for 39.9 MW Wind

Turbine Capacity with TECNEIRA - Tecnologias Energeticas, SA in the Penamacor region

of Portugal. The company was awarded the Best Manufacturer of the Year 2006, followed by

the Best Company in Corporate Social Responsibility Award at the Wind India Conference in

Pune. The company was also ranked as the second leading company in the 'Best Service

Provider among Manufacturers' in the same conference. In December 2006, the company

signed the turnkey contract with British Petroleum for setting up a 40 MW wind power

project in Maharashtra whereby becoming the only Indian manufacturer to attract Foreign

Direct Investment in the Indian Wind Energy Sector. In March 2007, the company

commissioned their first 2.1 MW capacity turbine in 'Down Under' - Australia. Also, they

completed the V3 S88 Test Turbine installation. The company signed a major new order with

DLF Limited, one of India's leading infrastructure companies, for 150 MW wind turbine

capacity. They commissioned their first 600 KW turbine at site at Agali, in Kerala. In

February 2008, they formed step-down wholly owned subsidiary company, SE Drive Technik

GmbH, Germany. Also, the company in joint venture with REpower Systems AG, Germany

established a new company, namely, Renewable Energy Technology Centre GmbH in

Hamburg, Germany. In April 2008, In June 2008, the company acquired the Areva's total

stake of approx 30% in REpower Systems AG of Germany. During the year 2008-09, Suzlon

acquired a 37.82% stake of REpower Systems AG ('REpower') thereby increasing its holding

in REpower to 73.65%. The company entered into the Sri Lankan wind energy market by

striking a deal with Senok Wind Power Pvt Ltd. The company's China subsidiary, Suzlon

Energy (Tianjin) Ltd (SETL) entered into an agreement with Inner Mongolia North

Longyuan Wind Power Corporation, for establishing a World Bank funded, 100 MW wind

farm project. Also, the company's subsidiary commissioned their first turbine in Brazil for

SIIF Cinco Ltd. During the year, the company through their subsidiaries got new orders in

Spain from Wigep Andalucia S.A. and in Nicaragua from Arctas Capital Group LP. They

commissioned their first Wind Turbine Generator (WTG) using Concrete Tower Technology.

They entered into TERI University for setting up and offering an M-Tech Programme in

Renewable Energy Engineering and Management. During the year, the company's

subsidiaries incorporated in special economic zones (SEZ) namely Suzlon Wind International

Ltd (Nacelle assembly unit), SE Composites Ltd (Rotor Blade unit), SE Electricals Ltd

(previously known as Suzlon Electricals International Ltd) (Generator & Control Panel unit)

and SE Forge Ltd (Foundry and Forging unit) commenced their commercial operations.

During the year, SE Solar Pvt Ltd became a wholly owned subsidiary of Suzlon Wind

International Ltd and in turn became a step-down subsidiary of the company. Sunrise Wind

Project Pvt Ltd became a wholly owned subsidiary of Hansen Drives Pte Ltd and in turn,

became a step-down subsidiary of the company. Also, the company through their subsidiary

sold 67,010,421 shares (10% of the equity base) in Hansen Transmissions International NV

(Hansen) to funds managed by Ecofin Ltd (Ecofin), a London based specialized investment

firm. Post disposal, Suzlon had a voting and economic interest in Hansen of 61.28%. During

the year, the company sold their subsidiary Suzlon Energy GmbH and Suzlon Windpark

Management GmbH to its step subsidiary Tarilo Holding B.V. and thereafter merged Suzlon

Windkraft GmbH into Suzlon Energy GmbH to facilitate effective management of research

and development activities. During the year 2009-10, Shubh Realty (Gujarat) Pvt Ltd became

a wholly owned subsidiary of Suzlon Infrastructure Services Ltd and, in turn, became a step-

down subsidiary of the company. RPW Investments, SGPS, S.A., Valum Holding B.V.,

Suzlon Wind Energy Bulgaria EOOD, Suzlon Wind Energy BH - Bosnia, Suzlon Energy

Australia RWFD Pty Ltd, Einundzwanzigste Vittorio Verwaltungs GmbH, Age Pargue

Eolico EL Almendro, S.L. REpower Rep Ventures Portugal S.A. became subsidiaries of the

company. The company through their subsidiaries acquired an additional 16.85% stake of

REpower Systems AG (REpower) thereby increasing their holding in REpower to 90.50%.

The company's shareholding through their subsidiary in Hansen Transmissions International

NV (Hansen) reduced to 26.06% and Hansen ceased to be a subsidiary of the company,

subsequent to sale of 35.22% shareholding. During the year 2010-11, Suzlon Wind Energy

South Africa PTY Ltd., Suzlon Energy Australia CYMWFD Pty. Ltd., Sure Power LLC,

Renewable Energy Contractors Australia Pty. Ltd., REpower Systems Polska Sp. REpower

Systems Scandinavia AB, REpower Portugal - Sistemas Eolicos, S.A., Ventipower S.A. and

RiaBlades S.A. became step down subsidiaries of the company. Also, Windpark

Meckel/Gilzem GmbH & Co KG ceased to be subsidiary of the company and Sister -

sistemas e Technologia de Energias renovaveis Lda was liquidated. As per the scheme of

arrangement and restructuring between STSL, SISL, SGWPL, SENL, the wholly owned

subsidiaries of the company and the Company (SEL) for de-merger and Transfer of Power

Generation Division of STSL to SENL, de-merger of Project Execution Division of SISL to

SGWPL, Amalgamation of STSL (after the above referred demerger) with the company and

Amalgamation of SISL (after the above referred de-merger) with the company with effect

from April 1, 2010. In January 2011, the company signed a memorandum of understanding

(MoU) with the Government of Gujarat to develop 1,000 megawatt (MW) of new wind

power capacity in the state over the next three years. In May 2011, the company signed a

contract with African Clean Energy Developments (ACED) for the supply and full EPC for

76 of Sulzon's S88 - 2 MW series turbines, with an option for ACED to acquire an additional

124 turbines for the Cookhouse Wind Energy Facility. In June 2011, the company received a

new order from the National Aluminium Company Limited (NALCO) to set up, operate and

maintain 50.4 MW of wind energy projects in Andhra Pradesh. In July 2011, the company

received a new order from Chennai based Orient Green Power Company Limited (OGPL),

for over 100 megawatts (MW) of wind power projects. In August 2011, the company won a

second order from the Indian Oil Corporation Ltd to set up, operate and maintain wind energy

projects of 48.3 MW in the state of Andhra Pradesh, India. Also, they won a repeat order

from the Malpani Group to set up, operate and maintain projects totaling 29.70 MW. In

October 2011, the company bagged an order from gas utility major GAIL (India) Limited for

its wind energy project to be commissioned in Karnataka in 2012. The order is for 17 units of

Suzlon's S82 - 1.5 MW wind turbines. In November 2011, the company received 23 MW

order from Gail (India) Ltd. The order consists of 11 units of Suzlon's S88 - 2.1 MW wind

turbines, to be commissioned in the states of Tamil Nadu and Karnataka by the end of the

financial year 2011-12. In January 2012, the company secured over 1 GW of orders for its

S9X suite of wind turbines. In March 2012, the company signed a global strategic partnership

agreement with CGN Wind Energy Co Ltd (CGNWE). CGNWE is a wholly owned

subsidiary of China Guangdong Nuclear Power Group. The agreement calls for the

development of 800 MW of domestic and international projects over the next three years.

Their main aim is to

To create market-defining products

To enable entry into new markets with new applications

To implement robust back end processes

To leverage our workforce competency

Vision

 

To be the technology leader in the wind sector

To be in the top three wind companies in all the key markrts of the world

To be the global leader in providing profitable, end wind power solutions

To be the ‘company of choice’ for stakeholder

“Be a Quality Leader through Technology and Sustainable Stakeholder Centric

Management”

 

Mission

Our mission of quality is to maintain a satisfied customer base, qualitative supplier base and a

highly motivated workforce by delivering quality products and services. In order to achieve

our mission, we commit ourselves to : 

Institutionalize customer focus with timely delivery, quality and product performance

that satisfies our customers needs and expectations thereby forging confidence and

long term relationships with our customer

Establish a qualitative supplier base having strong focus on quality systems, products

and continual improvement

Pursue total quality in every aspect of our organization creating an environment conducive

for team work of a highly trained and motivated workforce who are empowered to reach their

fullest potential

Work flow model

•Suzlon has developed an end to end solution model which include from resourcemapping to

operations and maintenance services. That is which resources are requiredaccording to the

demand of the customers and the capacity of the wind mill as required.

•Then after it go for site identification that is which site would be more suitable to set upwind

farm where the level of air at what level is available and even less costly.

•And the next step is the land acquisitions where the company buys the land for setting upa

wind farm but generally at this level the customer generally do dealing regarding the

purchase of the land and for the payment of it.

•And after the site selection the company manufacture wind turbine generator and

relatedcomponents related to it and that to on the basis of the site where to locate the wind

farm.

•After manufacturing the components do the development over the site set upinfrastructure as

required and do the installation of WTG.

•And after setting up wind farm company do the operation and maintenance and after sales

services

•Current customers are TATA, DLF, BAJAJ Auto, ONGC etc.

Quality, environment and safety policy

Suzlon is the union of community, shareholder, vendor, contractor and employee.

Shareholders united, individuals from all walks of life in our global community, working

together in powering a greener tomorrow.

Suzlon will continually seek out ways to exceed stakeholders expectation in providing

product and service with sustainable quality, technology cost and value.

It is our common understanding that measures for health and safety and commitment to full

environmental compliance, will be as proactive as our product itself.

Awards

2001-2002

-The Institute of Economic studies (IES) for productivity, quality Innovation and

Management.

2003-2004

-World wind energy association awards composite centre international export

2005-2006

-Government of Karnataka award for highest windmill installation. The foundation of Indian

industry achievement award for best renewable energy man of the decade – Mr. Tulsi R

Tanti, CMD, Suzlon energy ltd .

2006-2007

-ERI alumni award for entrepreneurship in energy environmental technologies

8th Ernst & young awards for the entrepreneurship of the year

-CNBC-TV 18 India business leader awards for most promising entrant the big league

Venture intelligence apex award for best PE/VC backed company

-The solar energy society of India award for SESI renewable energy pioneer

2007-2008

-Rajiv Ghandhi award for best Industrialist Mr Tulsi R Tanti

-Euromoney and Ernst & young global renewable energy awards

-Times heroes of the environment awards

2008-2009

Operating excellence

Suzlon Energy Limited is declared one of the winners of India's first Infrastructure awards -

KPMG-Infrastructure Today Awards 2008. Suzlon bagged the ' The Most Admired

Company - Power ( Non conventional) award under the Infrastructure Developers Category.

The awards have been instituted by KPMG and ASAPP Media Group to recognize and

felicitate exceptional work done in the Indian Infrastructure industry.

National operations

Suzlon Energy Ltd bags the first prize for Best Manufacturer (2006-2008) and the second

prize for the Best Service Provider among Manufacturers (2006-2008). The awards were

presented under the aegis of Wind India 2008 awards and are awarded to stalwarts in the

Indian Wind Energy industry for their efforts in shaping a Greener India.

Suzlon bags Golden Peacock National Training Award 2008.

The award function was held at the 9th International Conference on Corporate Governance

at London and the award was given through the hands of Dr Ola Ullsten, former PM of

Sweden.

Competitors Information

Sorted by megawatts installed worldwide

1. Vestas (Denmark) 4,500 MW

2. GE Energy (United States) 3,300 MW

3. Gamesa (Spain) 3,050 MW

4. Enercon (Germany) 2,700 MW

5. Suzlon (India) 2,000 MW

6. Siemens (Denmark / Germany) 1,400 MW

7. Acciona (Spain) 870 MW

8. Goldwind (China – PRC) 830 MW

9. Nordex (Germany) 670 MW

10. Sinovel (China – PRC) 670 MW

Vestas, or Vestas Wind Systems, is the leading and the largest wind turbine manufacturer in

the world. Vestas has a total market share of 28%. The company operates plants in Denmark,

Germany, India, Italy, Britain, Spain, Sweden, Norway, Australia, China, and Windsor,

Colorado and employs more than 20,000 people globally.

The General Electric Company, or GE is a multinational American technology and services

conglomerate incorporated in the State of New York. In terms of market capitalization as of

September 2008, The General Electric Company is the world’s tenth largest company.

Gamesa Corporación Tecnológica is a manufacturing company mainly concerned with the

fabrication of wind turbines and the construction of wind farms. Its headquarters are in

Vitoria-Gasteiz, Spain. It develops, manages and sells wind farms, for which it also supplies

the turbines. It is the market leader in Spain and is the second largest company in the sector

worldwide with a market share of 15.5 % in 2008.

Enercon GmbH is based in Aurich, Northern Germany and is the

fourth-largest wind turbine manufacturer in the world and has been the market leader in

Germany for several years.

One of Enercon’s key innovations is the gearless (direct drive) wind turbine in combination

with an annular generator.

Siemens AG is Europe’s largest engineering conglomerate. Siemens international

headquarters are located in Berlin and Munich, Germany. The company is a conglomerate of

three main business sectors: Industry, Energy and Healthcare with a total of 15 Divisions.

Worldwide, Siemens and its subsidiaries employ approximately 480,000 people in nearly 190

countries and reported global revenue of $110.82 billion as of 2008.

Acciona SA is a Spanish conglomerate group dedicated to civil engineering, construction and

infrastructures. The company was founded in 1997 through the merger of Entrecanales y

Tavora and Cubiertas y MZOV. The company’s headquarters is in Alcobendas, Community

of Madrid, Spain. The company’s U.S. operations are headquartered in Chicago.

Xinjiang Goldwind Science & Technology Company is a Chinese wind turbine

manufacturer based in Urumqi, Xinjiang. The company is the largest turbine manufacturer in

China and one of the ten largest in the world. Goldwind acquired a 70% stake in Vensys

Energy AG for €41.24 million on February 1, 2008.

Nordex was founded in 1985 in Give, Denmark and in 2000 they moved their headquarters to

Germany and became Nordex A.G. and launched their IPO in 2001. Today, their primary

production facilities are in Rostock, Germany and also have manufacturing joint ventures in

China. The company has a total global work force of over 1500 people. In 2006, Nordex was

ranked in 7th place for worldwide wind turbine sales, holding a 3.2% global share of the

global wind turbine market.

Sinovel Wind Co., Ltd is a high-tech company engaged in developing, engineering,

manufacturing and marketing of the wind turbine generator system. Sinovel Wind is the first

company which introduced the technology of 1.5MW wind turbine generator system into

China.

PART -A