Taro scraps USD-250m investment in Suzlon wind park in US

Wind farm. Author: Samir Luther. License: Creative Commons, Attribution-ShareAlike 2.0 Generic

November 25 (SeeNews) - Taro Pharmaceutical Industries Ltd (NYSE:TARO) said Tuesday it will not proceed with the planned USD-250-million (EUR 234.5m) investment in a US wind project of Suzlon Energy Ltd (BOM:532667).  

Taro, part of India-based Sun Pharmaceutical Industries Ltd (BOM:524715), dropped the plan just several days after it announced it officially.

Initially, the move was aimed at lowering the pharmaceutical company’s tax liabilities in the US. Following a further evaluation, however, Taro Pharmaceutical said in a statement that it had “decided not to pursue the wind energy project at the current time”.

The main reasons for such a change of heart probably include the fact that Indian turbine maker Suzlon is actually a connected person of the drug maker, and certain concerns raised by prominent brokerage houses that the wind segment is a completely unrelated business area, Indian daily The Economic Times reported.    

Sun Pharmaceutical managing director Dilip Shanghvi and executive director Sudhir Valia currently hold substantial stakes in Suzlon.

(USD 1.0 = EUR 0.938)

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