India's Shanghvi to back 1.7 GW of Suzlon projects - report

Wind farm in India. Author: Suzlon Group. License: All Rights Reserved.

May 4 (SeeNews) - Indian billionaire Dilip Shanghvi and Suzlon Energy (BOM:532667) will form this year a 50/50 joint venture to install 450 MW to 500 MW of wind parks at home while Shanghvi will also provide working capital for 1.2 GW of projects.

Kirti Vagadia, Group Head-Finance at Suzlon, told the Hindu Business Line that Shanghvi and the Indian wind turbine maker will each pour INR 4 billion (USD 63m/EUR 57m) in the joint venture. It will build wind parks in four Indian state over the coming two years.

As regards to the other 1.2 GW of projects, Vagadia has declined to give financial details.

In February, the Shanghvi family signed a definitive deal to take a 23% stake in Suzlon in exchange for an INR-18-billion equity investment. Dilip Shanghvi is the founder of drugmaker Sun Pharmaceutical Industries Ltd (BOM:524715)

Speaking of acquisition deals, US buyout firm Centerbridge Partners LP last week announced the completion of its takeover of German wind turbine maker Senvion SE from Suzlon. The roughly INR 70 billion in cash from this transaction will help the Indian company repay debt and support its growth plans.

Vagadia told Business Line that Suzlon will also be selling non-core assets such as component manufacturing businesses, old manufacturing units and office buildings to “right buyer”.

(INR 100 = USD 1.577/EUR 1.415)

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Tsvet has been following the development of the global renewable energy industry for almost nine years. She's got a soft spot for emerging markets.

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