China will make up about a third of Indian wind turbine maker Suzlon Energy Ltd’s total business by 2015, its chief said, helped by Beijing’s strong incentives to promote clean energy.
“We expect at least 30 percent of the group’s revenue has to come from China, we should achieve that in five years,” Tulsi Tanti said in an interview.
“We strongly believe the wind turbine business in China is strategically important for us,” Tanti said on the sidelines of the World Economic Forum in northern port city of Tianjin.
China accounts for about 10 percent of the group’s total revenue.
Research by China Wind Energy Association has projected that China would expand its wind power installed base by between 108 GW and 132 GW by 2020.
China has been doubling installed capacity every year for the past several years. The market is expected to display strong growth in 2010 and 2011, albeit at a slower pace because of overcapacity.
Suzlon’s China sales will rise to between 500 and 600 megawatts in its fiscal year through March 2012, compared with about 300 to 400 megawatts in financial year 2011, said Tanti.
Last year, Suzlon Energy sold a 35 percent stake in Belgium’s Hansen Transmissions International NV through a secondary placing of about 235 million depository interests.
After the placement, Suzlon holds 26.06 percent of the depository interests in Hansen, a London-listed wind turbine gearbox manufacturer.
Suzlon, one of the world’s largest makers of wind power systems, said at the time the placing would not impact its long-term supply arrangements with Hansen.
Tanti said Suzlon Energy may eventually fully exit from Hansen.
“There is no immediate plan to sell any equity in Hansen. In future, at the appropriate time and the appropriate valuation, we will decide (whether) to sell the equity in Hansen,” said Tanti. “At 26 percent, we are an investor. We cannot consolidate (Hansen’s financials) into our company. As a company, we are not interested only in investments.”
Separately, Tanti said Suzlon had no plans to reduce its stake in German wind turbine maker REpower Systems AG.
“There’s no plan for any equity reduction,” Tanti said, adding that Suzlon and REpower may eventually be integrated.
Citing an unnamed source, The Economics Times reported on Aug. 16 that Suzlon Energy may sell up to 25 percent in its unit REpower for $500 million. The company currently owns 91 percent of REpower.
