As traditional wind energy markets report weakness and fall in demand, India along with China has come to the rescue of leading Spain-based wind energy company, Gamesa to drive its topline growth. India was the second country after China in terms of major revenue contribution to Spanish wind turbine maker in 2011.
Of the euro 3.026 billion revenues in 2011, India contributed 530 million euros, which was up from 189 million euros in 2010, recording the highest growth in revenue contribution among various geographies. China was the major contributor at about 670 million euros, which was up from about 358 million euros in 2010.
While the home market Spain reported a fall in revenue at about 262 million euros, against 310 million euros in 2010, the rest of Europe, which was the major contributor of its revenue in the previous years, saw its revenue declining to 662 million euros from 902 million euros. The revenue contribution from the US dropped to 410 million euros from 723 million euros, according to the company’s latest annual report.
With strong growth in 2011, contribution of India and China to Gamesa’s global revenue increased to 17.5 per cent from 6.9 per cent in 2010 and 22.1 per cent from 13.1 per cent respectively.
In terms of wind turbine sales, Gamesa saw about 92 per cent of sales coming from outside Spain in 2011. Wind turbine sales increased 2.6-fold in India (accounting for 19 per cent of the total mw sold in the year). During the year, Gamesa sold 2,082 mw of wind turbines globally and sales in India grew to 519 mw from 196 mw in 2010, thereby increasing the contribution in global wind turbine sales to 19 per cent from eight per cent in the previous year.
Earlier this year, Gamesa launched its first blade plant in India at Vadodra in Gujarat, which will supply blades for 850 kw and 2.0 mw platforms, mainly to wind projects in the northern states, such as Gujarat, Rajasthan, Madhya Pradesh and Maharashtra. With three plants in India (nacelles, blades and towers, the latter through joint venture Windar), Gamesa’s ongoing expansion plans in India will be completed this year with the installation of a new nacelle plant in Tamil Nadu.
However, Gamesa has now revised its global wind turbine sales guidance downwards to about 2,000 mw for 2012 from the earlier 2,800-3,000 mw levels in view of the sluggish demand in India and China during the year. Despite this revision, both countries are still expected to be among the significant contributors to Gamesa’s topline.
