Changes
/* Strategic Position */
==Company Overview==
Suzlon Energy (Suzlon) is engaged in the manufacture and sale of wind turbine generators (WTGs) and components. It provides various wind energy solutions including wind resource mapping, site identification and development, installation, operation, and maintenance services. The company has operations across Americas, Asia, Australia, and Europe. It is headquartered in Pune, India and employs about 16,000 people.
{|border="2" cellspacing="0" cellpadding="4" width="55%" align="center"
|align = "center" bgcolor = "#CCCCFF538ED5"|<font color="#000000">'''Head Office'''</font>
|One Earth , Opp. Magarpatta City<br>Hadapsar<br>Pune 411 028<br>India
|-
|align = "center" bgcolor = "#CCCCFF538ED5"|<font color="#000000">'''Phone'''</font>
|91 20 4012 2000
|-
|align = "center" bgcolor = "#CCCCFF538ED5"|<font color="#000000">'''Fax'''</font>
|91 20 4012 2100
|-
|align = "center" bgcolor = "#CCCCFF538ED5"|<font color="#000000">'''Web Address'''</font>
|[http://www.suzlon.com/ http://www.suzlon.com]
|-
|align = "center" bgcolor = "#CCCCFF538ED5"|<font color="#000000">'''<nowiki> </nowiki> Employees'''</font>
|16000
|-
|align = "center" bgcolor = "#CCCCFF538ED5"|<font color="#000000">'''Turnover (US $M)'''</font>
|4330
|-
|align = "center" bgcolor = "#CCCCFF538ED5"|<font color="#000000">'''Financial Year End'''</font>
|March
|-
|}
===Key Financials===
Source: [http://www.ismcapital.com/images/news/ISM%20Capital_Suzlon_Tilting%20at%20Windmills.pdf IMS Capital Report]
===Revenue Distribution===
The following table gives the geographical break-up of revenue distribution of Suzlon Wind Turbine Generator (not Suzlon Group) for the year 2010:
<br>
{|border="2" cellspacing="0" cellpadding="4" width="50%" align="center"
|align = "center" bgcolor = "#538ED5"|'''Geography'''
|align = "center" bgcolor = "#538ED5"|'''Revenue (INR Crore)'''
|align = "center" bgcolor = "#538ED5"|'''% of Total Revenue'''
|-
|India
|align = "center"|4,094
|align = "center"|42%
|-
|USA
|align = "center"|2,483
|align = "center"|26%
|-
|China
|align = "center"|813
|align = "center"|8%
|-
|ANZ
|align = "center"|1,192
|align = "center"|12%
|-
|Europe & ROW
|align = "center"|1053
|align = "center"|11%
|-
|'''Total'''
|align = "center"|'''9,635'''
|align = "center"|'''100%'''
|-
|}
<br>
==Business Overview==
===Organization Structure===
[[Image:Org chartchart1.jpgpng|Centercenter|thumb|1000 px]]
<br>
===Investment HistoryMergers & Acquisitions===[[Image:Investment Details.jpg{|700pxborder="2" cellspacing="0" cellpadding="4" width="75%" align="center"|align = "center]]" bgcolor = "#538ED5"|'''Acquisitions'''|align = "center" bgcolor = "#538ED5"|'''Source: Suzlon Valuation Analyst ReportDisinvestments'''|align = "center" bgcolor = "#538ED5"|'''Subsidiary M&A'''|-|* SE Forge (Oct 2010)<br>* RE Power Systems (Dec 2009)<br>* RE Power Systems AG (Jun 2009)<br>* RE Power Systems AG (Jun 2008)<br>* RE Power Systems AG (Jun 2007)|* RE Power Systems (Aug 2010)<br>* Swibi AG (Jun 2010)<br>* Hansen Transmissions (Apr 2009)<br>* Denker & Wulf AG-Quitzow Wind (Mar 2009)<br>* Hansen Transmissions (Jan 2009)<br>* SE Forge (Oct 2008)|* RE Power Systems AG acquired PROASEGO Wind Park (May 2010)<br>* RE Power Systems Swiz acquired stake in Wind farm Corleto Perticara (Aug 2010)<br>* AE-Rotor Techniek of the Netherlands acquired Eve Holding NV, a manufacturer of wind turbines (Mar 2006)|-|}
<br>
===Order Book===
<br>'''Source: Factiva News Articles, Analyst Reports'''
<br>
===Client Base in Key Markets===
{|border="2" cellspacing="0" cellpadding="4" width="100%"
|align = "center" bgcolor = "#C5D9F1538ED5"|'''India'''|align = "center" bgcolor = "#C5D9F1538ED5"|'''USA'''|align = "center" bgcolor = "#C5D9F1538ED5"|'''China'''|align = "center" bgcolor = "#C5D9F1538ED5"|'''Australia/NewZealand'''|align = "center" bgcolor = "#C5D9F1538ED5"|'''Europe & South America'''
|-
|Tata Power<br>Bajaj Auto<br>Essel Mining<br>MSPL<br>ONGC
==Market Overview==
===Market Share===
[[Image:Market Position1.jpg|700px600px|center]]
(*Suzlon 6.9% plus RE Power 2%)<br>
'''Source:BTM Consult'''<br>
*Market Share of Suzlon Wind Energy for 3 years from different sources (Excluding RE Power)
{|border="2" cellspacing="0" cellpadding="4" width="47%" align = "center"|align = "center" bgcolor = "#C5D9F1538ED5"|'''Source'''|align = "rightcenter" bgcolor = "#C5D9F1538ED5"|'''2010'''|align = "rightcenter" bgcolor = "#C5D9F1538ED5"|'''2009'''|align = "rightcenter" bgcolor = "#C5D9F1538ED5"|'''2008'''
|-
|bgcolor = "#C5D9F1"|'''BTM Consult'''|align = "rightcenter"|6.9%|align = "rightcenter"|6.4%|align = "rightcenter"|7%
|-
|bgcolor = "#C5D9F1"|'''Make Consulting'''|align = "rightcenter"|6%|align = "rightcenter"|5.8%|align = "rightcenter"|7%
|-
|}
companies have long term supply agreements in place. Hansen is also developing a customised gearbox for RePower. If Suzlon
sells its stake in Hansen, some of this advantage may be eroded.<br>
[[Image:CompetenciesCompetitive advantage.jpg|center]]
'''Source:Analyst Reports'''
<br>
===Strategic Position===
[[Image:Strategic positionposition1.jpg|center]]
'''Source:Analyst Reports'''
===SWOT Analysis===
{|border="2" cellspacing="0" cellpadding="4" width="55%" align = "center"
|align = "center" bgcolor = "#CCCCFF538ED5"|<font color="#000000">'''Strengths'''</font>|align = "center" bgcolor = "#CCCCFF538ED5"|<font color="#000000">'''Weaknesses'''</font>
|-
|1. Integrated business model<br>2. In house technology and design capabilities<br>3. Market leadership in India and global presence<br>4. Prudent acquisitions and alliances<br>5. Global production<br>6. Pricing power<br>7. Diversified product line
|1. Operational risk<br>2. Growth in assets diminishing growth in profits<br>3. Unsupportive stock prices<br>4. Unfavorable ratings<br>5. Improper working capital management<br>6. Weak strategic financial management<br>
|-
|align = "center" bgcolor = "#CCCCFF538ED5"|<font color="#000000">'''Opportunities'''</font>|align = "center" bgcolor = "#CCCCFF538ED5"|<font color="#000000">'''Threats'''</font>
|-
|1. Environmental awareness<br>2. Government initiatives<br>3. Untapped offshore market<br>4. Steady growth in demand<br>5. Vast coastlines of India and low cost
|-
|}
==Recent Developments==
{|border="2" cellspacing="0" cellpadding="4" width="90%" align = "center"
|align = "center" bgcolor = "#538ED5"|'''S.No'''
|align = "center" bgcolor = "#538ED5"|'''Date'''
|align = "center" bgcolor = "#538ED5"|'''Details'''
|align = "center" bgcolor = "#538ED5"|'''Source'''
|-
|align = "center"|1
|align = "center"|23rd April<nowiki>’</nowiki>11
|'''Suzlon '''has announced the signing of an order with Gujarat State Fertilizers & Chemicals (GSFC) to set up, operate and maintain wind energy projects totaling to 50.4 MW in Gujarat.The projects, utilising 24 units of Suzlon<nowiki>’</nowiki>s S88-2.1 MW wind turbine, will be set up in wind farms operated by Suzlon in the Rajkot and Surendranagar districts of Gujarat. This is GSFC<nowiki>’</nowiki>s fifth order with Suzlon and is scheduled for completion and commissioning by September 2011.
|align = "center"|ProQuest
|-
|align = "center"|2
|align = "center"|9th April<nowiki>’</nowiki>11
|Recently, '''Suzlon Energy''', India<nowiki>’</nowiki>s leader in wind energy launched a new range of large capacity wind turbine machines suitable for low wind speeds. It has also raised its stake in Repower Systems AG to 95.16% from earlier 91%. The company will initiate a <nowiki>’</nowiki>squeeze out procedure<nowiki>’</nowiki> of minority shareholders so that Repower becomes a wholly owned subsidiary.
|align = "center"|ProQuest
|-
|align = "center"|3
|align = "center"|6th April<nowiki>’</nowiki>11
|'''Suzlon Energy''', through its subsidiary, would have full control over the off-shore wind equipment specialist Repower, thus enabling access to the German player<nowiki>’</nowiki>s portfolio of products and more importantly technology. Added to it, the reasonably rich cash status of REpower and its minimal debt balance sheet could be more effectively utilised by Suzlon. This was not possible earlier, with Suzlon holding a less than 100 per cent stake.
|align = "center"|Business Line
|-
|align = "center"|4
|align = "center"|5th,April <nowiki>’</nowiki>11
|Massive, new natural-gas discoveries in the U.S. slashed the price of the fuel that wind competes most directly against. And the recession slowed demand for new power plants of any kind, leading more politicians to question renewables subsidies. Congress has declined so far to pass a renewable-energy requirement. Some major wind-turbine makers are cutting production at some factories. More than a year ago, '''Suzlon Energy Ltd.''', an Indian company that is one of the world<nowiki>’</nowiki>s biggest wind-turbine makers, began laying off workers at its plant in Pipestone, Minn., which makes blades for turbines; the plant now is operating at just one-third of its capacity, says Tulsi Tanti, the company<nowiki>’</nowiki>s chief executive. Given the lack of a nation-wide renewables mandate, he says, Suzlon also has postponed plans to build another U.S. factory, in Texas.
|align = "center"|Factiva
|-
|}
<br>
==Key Insights==
'''Support from Government of India'''<br>
The Indian government has enacted legislation giving a tax break for investments in renewable energy twice in the last five years giving a significant boost to Suzlon as it has a 50% market share in India.
<br><br>
'''Rejection of Wind Turbine Blades'''
<br>Suzlon has faced the problem of continuous rejection of wind turbine blades and it resulted in the following:
*Shares dropped 19% because of china issue
*Shares dropped 84% last year because of US issue
*Spends $100M to fix cracked-blade problem
<br>
'''Debt Problem'''
Suzlon currently has net debt of USD 2.05bn and faces a heavy debt repayment schedule beginning in FY2013.
*Monetized 35.22% stake in Hansen Transmissions
*Realized GBP 224 million through placement of 236 million depository interests at a price of 95 pence per depository interest
<br>
'''R&D and NPD Outlook'''
*Suzlon has doubled its R&D expenditure
*Introduced 2 new products
*Extensive research in setting up wind mills in forested area
<br>
'''Repeat Orders in India'''
*Gujarat State Petronet Ltd.
*Rajasthan State Miners & Minerals Ltd.
*Gujarat Alkalies and Chemicals Ltd.
*State Bank of India
*Gas Authority of India
<br>
==Key Executives==
{|border="2" cellspacing="0" cellpadding="4" width="10070%" align="center"|bgcolor = "#CCCCFF538ED5" align = "center"|<font color="#000000">'''Name'''</font>|bgcolor = "#CCCCFF538ED5" align = "center"|<font color="#000000">'''TitleDesignation'''</font>
|-
|Tulsi Tanti
|}
<br>
*'''Biography of CMD, Tulsi Tanti'''**Tulsi Tanti is from Gujarat, India where he started his first venture which was in textiles but he found the prospects stunted due to infrastructural bottlenecks. The biggest of them all was the cost and unavailability of power, which formed a high proportion of operating expenses of textile industry. In 1990, he invested in two wind turbine and realized their huge potential. In 1995, he formed Suzlon and gradually quit textiles. This is how he set out on a new path.**The $10 billion Suzlon Energy is his wind power based company that has expanded its operations into various parts of the globe. With this successful venture, Tanti is amongst the ten richest Indians and one of the most successful entrepreneurs in Asian region. With a net worth of $5.9 billion, he is the chairman and managing director of Suzlon energy. Tanti owns 70% of the company with his three siblings.
<br>
