SUZLO

N
Powering a greener tomorrow

Eleonora Martina Parul Paolo Prathik Shikha BD11 - International Marketing Management
Company overview

START SUZLON HEADQUARTER

199 &
Indian entrepreneur Tulsi Tanti
5 decided to create Suzlon to sell R&D CENTER FACTORIES
WTG to other Indian industrial EUROPE:
companies SALES OFFICE ₋ Germany SALES OFFICE
₋ Netherlands
USA CHINA
₋ Denmark
199 COLLABORATION ₋ Belgium
6 Technical collaboration with a
German WTG manufacturer, to
source latest technology aiming to
produce WTG in India

200 INTERNATIONAL
5 Secures major wind farm
contracts in USA, Australia, China
and South Korea
INDIA

200 STOCK EXCHANGE

6 Successfully floated in the
Bombay Stock Exchange

SOLAR POWER
201 Entered the market for solar 15 manufacturing units and 9 R&D facilities across the world
5 power plant solutions
Company overview

Over two decades of

N. 1 rich experience in the
in India’s Renewable Sector wind energy sector

11800+ Vertically integrated,

Wind turbines installed & wind turbine
Active operations in 18 manufacturer of 3
countries types of models (S111,
S120, S128)

Over 17,900 MW of
1800+ installed capacity
Customers Globally worldwide
 Financial performance

FINANCIAL PROFILE SUZLON.LTD

2010-2019​ 7000000
To repay the debt
Financial 6000000 Suzlon has sold most
Performance​ 5000000 of his assets​
(data at 31/3 of each year)​ 4000000

Values in USD
• Total Debt 1.4B $​ 3000000

• Debt/EBITDA=54 (54 years 2000000

to repay the debt 1000000

with operational income) 0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
at 31/3/2019​ -1000000
• Share value collapsed from -2000000

425 INR (2008) to 3 INR SOLVENCY RATIO (%)

(7/11/2019).​ 40.0
News: Weak long-term
20.0
Global wind turbine maker health, calculated
0.0
by evaluating -20.0 its 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Vestas Wind Systems’ repayment ability
-40.0 for
withdrew the offer to its long-term -60.0debt
acquire Suzlon Energy for and the interest-80.0 on

nearly a billion euros. that debt​ -100.0

-120.0
Sep.19
1 INR = 0,014 $​ Credit rating BBB -
 Renewable Energy in INDIA

INDIAN MARKET SIZE SECTOR

COMPOSITION
• As part of its Paris Agreement
commitments, the Government 34.
of India has set an ambitious 6 24.
target of achieving 175 GW of 0 8.9
renewable energy capacity 4.5
by the
• In 2022
next 4 years renewable Wind Solar Bio-power Hydro
sector in India is expected to
attract investments of 60
billion $ COST OF SOLAR PANELS
The costs for setting up solar PV
ROBUST DEMAND projects have dropped by
about 80 per cent in India
• As the Indian economy grows, between 2010 and 2018, thanks to
the electricity consumption is a combination of low-priced panel
projected to reach 15,280 Twh imports from China, abundant land
in 2040. and cheap labour. ​

wh : Terawatt hour
Wind-Solar Hybrid Power Systems​

India’s Ministry of New & Renewable Energy released the

1
National Wind-Solar Hybrid Policy in May 2018

The main objective of the policy is to provide a framework

2 for promotion of large grid connected wind-solar PV hybrid
systems

A wind-solar hybrid power system is ideal for optimal and

efficient utilization of transmission infrastructure and land,
3
reducing the variability in renewable power generation
and achieving better grid stability
Challenges & Possible solutions

Challen
Challen Solutions
Solutions
ges
ges
International expansion UPPSALA
Emerging country trying to Neighborhood countries: Asia, Middle
develop in an international East..
market Cultural close countries : UK New Zeland Exploit
the
Improve financial planning Benefits
Heavy financial losses and high debts FINANCIAL RESTRUCTURING of the
Undermined confidence of investors Solar
power

Improve quality PROCESS PERFORMANCE

WTG forced a massive recall, 6 sigma, Kaizen
order cancellations Introduction of modern automated
technologies Blue
Ocean
Strategy:
Improve technology transfer INNOVATION HUB IN INDIA Hybrid
Difficulties to transfer the know how Training in factories
from the R&D labs in Europe to the R&D Investment product
Indian factories
 STRATEGY: INVESTMENT IN R&D TO CREATE THE NEW
1 HYBRID PRODUCT, STAY IN INDIA AND WITH OUR
CURRENT CLIENTS  -IMPROVING QUALITY ON THE
PROCESSES​
STRATEGY: GROW INTERNATIONAL IN "CULTURAL
2 CLOSE" COUNTRIES WITH OUR CURRENT OFFER –
IMPROVING QUALITY OF THE PROCESSES​

3 STRATEGY: CHANGE BUSINESS MODEL AND GO FOR THE

SOLAR PANELS ​

4 MERGER OR ACQUISITION OF THE COMPAMY

THAT WOULD AVOID BANKRUPTCY​
SOURCES

• https://www.weforum.org/agenda/2019/06/india-is-now-producing-the-world-s-cheapest-solar-power/​
• http://resourceirena.irena.org/gateway/countrySearch/?countryCode=IND​
• https://www.renewableenergyworld.com/2018/08/29/india-gets-solar-wind-and-storage-hybrid-plant/​
• https://mnre.gov.in/aerogeneratorswind-hybrid​
//economictimes.indiatimes.com/articleshow/71041164.cms?from=mdr&utm_source=contentofinterest&utm_medium=
text&utm_campaign=cppst​