Suzlon India is set to Invest some one and half million dollar in UK to build a manufacturing facility. Suzlon is a manufacturer of wind turbines in India. The current customer base of Suzlon is in America, Europe and Australia. Suzlong has a strong presence in Indian and Asian market but its real strength will be tested in advanced economies. Suzlon was ready to take up the challenge when they bought RePower of Europe in Dec’2009. After this acquisition Suzlon has captured more than 10% of global market share in wind turbine manufacturing segment. With prices of fuel touching sky high levels, there is little doubt that companies like Suzlon has strong future potentials.
Suzlon was set up in 1995 with objective of providing alternative power generation facility to India. Since they Suzlon has grown many folds and is considered among the worlds best in wind turbine manufacturing. The order booking levels of Suzlong is impressive but they faced a majjor crisis when their supplies to US was found defective. Wind turbine blades were defective and Suzlon was obliged to replace all incurring an additional expenditure of some $100 million dollars. This not only was a big loss in terms of capital expenditure but also resulted in cancellation of existing orders. This resulted in stock prices of Suzlon fall to all time low levels.
Suzlon’s current potential competitors are all Chinese who are ready to supply wind turbines at substantial discounts as compared to Suzlons price. Europe is currently becoming the focus point of wind energy usage and it is here that Chinese companies are making an entry. Suzlon has a major strategic disadvantage in India where they do not have their own Wind Tunnel Testing Facility. They are dependent on Government agencies for these testings which ultimately hinders in research and development work and also on the testing of final products. This results is failure of delivery deadlines. But by entering into European markets by buying stake in RePower, Suzlon seems to almost made-up this disadvantage. In Europe a lot of wind tunnel testing facilities are available which they have unrestricted access. In Britain alone the wind energy market is growing at the rate of 25% per year. As a policy, all developed economies are now focusing of renewable energy options to fulfill their obligation towards making this a greener earth.
Suzlon is one company to look for in times to come
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