Suzlon

Suzlon is an integrated wind energy solutions provider. It offers the entire gamut of solutions starting from wind resource mapping, land acquisition, technology development, turbine manufacturing, and EPC projects and completing the chain with operations & maintenance services. 

Suzlon is the world’s 3rd largest wind power supplier, with a market share of 9.8% of the world wind energy market. 

The company has cumulatively added over 5,000 MW of wind power capacity for over 1,500 customers in India across 40 sites in eight States. Suzlon has maintained the top position with the highest year-on-year market share since 10 consecutive years. 

Main line of activity 

Suzlon specializes in providing total solutions in Wind Power Generation with cohesive integration of consultancy, design, manufacturing, installation, operation and maintenance services.

  • 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, as well as gearboxes through its partial ownership of Hansen Transmissions and state-of-the-art large or offshore turbines through its subsidiary Repower

Details of the Founder 

Mr Tulsi R.Tanti is the Chairman & Managing Director of Suzlon Energy Limited, US$ 10 Billion worth (market cap) wind power based Company. 

Mr. Tanti founded Suzlon Energy Limited in 1995, and has led from the helm to transform the company into the world's third and India's leading wind turbine maker, commanding over 9% of global market share; and a key player in transforming India's wind industry into the world's fourth largest. 

Tulsi Tanti is a Commerce Graduate & Diploma Holder in Mechanical Engineering. He has also taken Education from Pace University, New York. 

Mr. Tulsi R. Tanti was named by the United Nations Environment Program as a Champion of the Earth for 2009 for his Entrepreneurial Vision in combating climate change. 

Pain point of the problem being solved: 

Global electricity consumption is expected to increase by 47% by the year 2015, accelerated by developing countries, and as more and more people are able to enjoy a higher standard of living. It is estimated that by 2015, we will be confronted with a new generation capacity requirement of almost 1,271 GW. 

Pushed to the limit, cost of conventional energy will inevitably rise, while concerns surrounding oil and gas availability add to the uncertainty. 

The IEA estimates that this would require cumulative investment of approximately US $20 trillion between 2005 and 2030 and more than half of this energy investment will be required by developing countries alone. 

Today, wind energy has unquestionably emerged as the second largest renewable energy source, behind hydro-electric power. It is currently being harnessed by almost 70 countries of which 19 countries have already installed more than 100 MW each in 2007. 

Installed wind energy had touched 94 GW in the same year. By 2016 this is expected to touch a phenomenal 455 GW. It is estimated that the world wind marketplace will continue to grow at over 20% till past 2012. 

Wind analysts estimate that technically recoverable wind power across the world is as high as 53,000 Terawatt Hour/year, over twice the world's energy demand projection for 2020. Wind researchers estimate that by the year 2040 wind energy could produce 3,200 GW towards meeting the world's energy needs, which by then will represent 23% of the global consumption. 

Suzlon’s Business model 

Suzlon's business model has evolved to an 'integrated solutions' package for wind energy projects. Suzlon's key activities include: 

(a) designing, developing and manufacturing WTGs

(b) wind resource mapping

(c) identifying suitable sites for wind farms

(d) coordinating with its associate companies in the acquisition and development of these sites and installation of WTGs

(e) providing after-sales O&M services 

This business model allows Suzlon's customers to benefit from the cost-efficiencies and economies of scale Utility-scale wind farms can offer. Suzlon's expertise in O&M has also added value in enhancing the performance of WTGs under operational conditions. 

Suzlon gathers real-time data relating to the WTGs enabling online turbine performance management even from remote locations. Suzlon's R&D teams leverage the operational data gathered to constantly improve upon the current WTG models. 

Suzlon's business model is different -- it builds and transfers, it doesn't invest. 

  • Globally integrated with production units in China, India and USA. The company is integrated downstream and delivers turnkey projects through its project management and installation consultancy, and operations & maintenance services
  • Suzlon gathers real – time data relating to the WTGs enabling online turbine performance management even from remote locations.

 

Year

Milestones

1995

First wind farm project in Gujarat (3 MW)

1998

First Wind Turbine in Maharashtra, Satara District

2001

Formation of subsidiaries: Suzlon Wind Energy Corp, USA & Suzlon Energy Gmbh,    Germany

2002

First Wind Turbine in the USA

2006

Project for Australia Gas & Light Company

2007

400 MW deal with PPM Energy of Portland, USA. Acquired German wind Turbine Company, RE Power

2011

$191 million agreement with Hindustan Zinc a unit of Vedanta Resources

Key Milestones Achieved

 

 

 

 

 

 

 

 

Key inflection points:

  •  Suzlon signed a $191 million agreement with Hindustan Zinc a unit of Vedanta Resources, to operate and maintain 150 megawatt wind projects in India  (2011)
  • The company's true prowess as a global giant was highlighted with two major acquisitions bids.
  • Suzlon acquired Hansen Transmissions NV – the world's second leading wind gearbox maker – in 2006, completing its quest to integrate all critical component technologies into its value chain and create a strong, extendible supply chain to support high growth in a global supply-restricted environment
  • To strengthen its research base, Suzlon has entered into an agreement with REpower, founding the Joint Venture “Renewable Energy Technology Center GmbH“ (RETC) in Hamburg, in which each firm holds a 50% stake. (2007)

Revenue and Profit growth 

  • Revenue of nearly 5.4 Billion $
  • 50 percent of YoY market share 

Market segment

  • There are three major market segments for turbines: turbine engines exclusively used to power aircraft, gas turbines for power generation and wind turbines. Demand for wind turbines will exceed that for gas turbines by 2012. Modern wind turbines are sold in 2010 at $1.5 million per megawatt. If the United States were to install 20 percent of its nation's energy supply from wind, then it would equal a $250 billion dollar market.  

References:

http://www.suzlon.com/pdf/Knowledge%20Book.pdf

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