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)

Join Renewables Now's free daily newsletter now!

More stories to explore
Share this story
About the author
Browse all articles from Militsa Mancheva

Militsa is mainly focused on the Chinese market and the rest of Asia with solar energy and offshore wind as her mantras.

More articles by the author
5 / 5 free articles left this month
Get 5 more for free Sign up for Basic subscription
Get full access Sign up for Premium subscription