Energy Sector- Suzlon Energy

Hakimi Consultants

SUZLON-Company Overview

A global wind power company.A global wind power company.

Founded by Mr. Tulsi Tanti (Chairman & MD) in 1995.Founded by Mr. Tulsi Tanti (Chairman & MD) in 1995.

Headquarter- Pune, India.Headquarter- Pune, India.

Employee Strength over 14000Employee Strength over 14000

Suzlon (including REpower) is the world's third leading wind turbine supplier group in terms of market share.Suzlon (including REpower) is the world's third leading wind turbine supplier group in terms of market share.

Global Market share=9.8% (Suzlon:6.4% +REpower 3.4%)Global Market share=9.8% (Suzlon:6.4% +REpower 3.4%)

Geographical Presence in 30+ countries spread across 5 continentsGeographical Presence in 30+ countries spread across 5 continents

Manufacturing Units in 3 continents.Manufacturing Units in 3 continents.

R&D centers: Belgium, Denmark, Germany, India and NetherlandsR&D centers: Belgium, Denmark, Germany, India and Netherlands

Leading Supplier in India for the 12th year approx. 50% market shareLeading Supplier in India for the 12th year approx. 50% market share

Specialization in On Shore (Suzlon); Off Shore & On Shore (REpower)Specialization in On Shore (Suzlon); Off Shore & On Shore (REpower)

Added over 5,000 MW of wind power capacity for over 1,600 customers in India. Added over 5,000 MW of wind power capacity for over 1,600 customers in India.

Accounts for more than half of the India’s total wind turbine installationsAccounts for more than half of the India’s total wind turbine installations

Global - Industry Trends & Outcomes

Energy SecurityEnergy

Security

Climate Change & Global Warming

Climate Change & Global Warming

Cost Competitiveness & HedgingCost Competitiveness & Hedging

• Hedge against Geopolitical risks-Local and

Secured supply

• Hedge against Geopolitical risks-Local and

Secured supply

• Kyoto Protocol: Reduction of CO2 emissions

• EU Declaration: 20% from RE by 2020• US/India: 10% to 20% RPS/RPO

mandates

• Kyoto Protocol: Reduction of CO2 emissions

• EU Declaration: 20% from RE by 2020• US/India: 10% to 20% RPS/RPO

mandates

• Improvements in yield (cost/kWh)• Cost/kWh of generation: US$ 0.03-0.06• Wind Energy directly competing with conventional power

• Improvements in yield (cost/kWh)• Cost/kWh of generation: US$ 0.03-0.06• Wind Energy directly competing with conventional power

Global Wind Power ShareGlobal Wind Power Share Global Energy Generation (TWh) Global Energy Generation (TWh) Global Installed Capacity (GW)Global Installed Capacity (GW)*Source-Suzlon Q1 FY11 Result Presentation

India - Industry Trends & Outcomes

2011 2014 2018 2021

0200400600800

1000120014001600

Production(GW)Consumption (TWh)

*calculated on the basis of existing market conditions

Electricity Demand Projections in IndiaElectricity Demand Projections in India

Current Regulations and Benefits

80% Accelerated depreciation allowed in wind energy projects if they are commissioned before 30 September of the same financial year; or 40% if commissioned before 31 March. 10 year income tax holiday for wind power generation projects 100% excise duty waiver on certain wind turbine parts Reduced wheeling charges as compared to conventional energy 100% FDI investment allowed in Renewable energy generation projects Generation Based Incentive (GBI) scheme for grid interactive wind power projects -Rs 0.50 per kWh Declaration of preferential tariffs from Rs 3.39–5.32 per kWh by some states

Current Regulations and Benefits

80% Accelerated depreciation allowed in wind energy projects if they are commissioned before 30 September of the same financial year; or 40% if commissioned before 31 March. 10 year income tax holiday for wind power generation projects 100% excise duty waiver on certain wind turbine parts Reduced wheeling charges as compared to conventional energy 100% FDI investment allowed in Renewable energy generation projects Generation Based Incentive (GBI) scheme for grid interactive wind power projects -Rs 0.50 per kWh Declaration of preferential tariffs from Rs 3.39–5.32 per kWh by some states

Industry Analysis - Challenges

Decommissioning of Accelerated Depreciation Policy

Decommissioning of Accelerated Depreciation Policy

With the introduction of Direct Tax Code by 2012, accelerated depreciation policy will expire. This initiative may de-motivate the big companies of wind power because accelerated depreciation accounting method allows companies to write off investments at a faster rate than normal, which reduces tax liabilities.

With the introduction of Direct Tax Code by 2012, accelerated depreciation policy will expire. This initiative may de-motivate the big companies of wind power because accelerated depreciation accounting method allows companies to write off investments at a faster rate than normal, which reduces tax liabilities.

Inadequate grid infrastructureInadequate grid infrastructure

Inadequate grid infrastructure in states with high wind potential has slowed down the growth of wind energy industry

Inadequate grid infrastructure in states with high wind potential has slowed down the growth of wind energy industry

Irregular Tariff Changes for Wind Energy

Irregular Tariff Changes for Wind Energy

In many states, tariffs once fixed have remained unchanged over two to three years, despite significant changes in the market conditions. There is a need for a regularization of determining these prices as inadequate price levels will act as a deterrent to investment in wind based projects.

In many states, tariffs once fixed have remained unchanged over two to three years, despite significant changes in the market conditions. There is a need for a regularization of determining these prices as inadequate price levels will act as a deterrent to investment in wind based projects.

High Competition from Foreign Players

High Competition from Foreign Players

Increased competition from global players such as Vestas, Sinovel and Enercon. India, a growing wind energy markets, is likely to see increased focus from players like Siemens, GE and Indowind.

Increased competition from global players such as Vestas, Sinovel and Enercon. India, a growing wind energy markets, is likely to see increased focus from players like Siemens, GE and Indowind.

Porter’s Five Forces

Competitive Rivalry

Competitive Rivalry

Supplier Power

Supplier Power

Threat of New Entry

Threat of New Entry

Threat of SubstitutesThreat of

Substitutes

Buyer PowerBuyer Power

•Huge Capital requirement•Suzlon as a brand is preferred by clients•Advanced Technology required•Access to resources•Quality control Standards

•Huge Capital requirement•Suzlon as a brand is preferred by clients•Advanced Technology required•Access to resources•Quality control Standards

•Few potential Buyers•Sensitive to pricing•Power Purchase Structure• In India Switching cost is high•Backward integration for buyers is difficult

•Few potential Buyers•Sensitive to pricing•Power Purchase Structure• In India Switching cost is high•Backward integration for buyers is difficult

•High demand for components•Suzlon has successfully adopted Backward Integration which has reduced its dependency on suppliers.• For the suppliers forward integration is very costly

•High demand for components•Suzlon has successfully adopted Backward Integration which has reduced its dependency on suppliers.• For the suppliers forward integration is very costly

•Other renewable technologies•Price substitution from conventional sources•Although financial incentives are there for wind energy from govt.

•Other renewable technologies•Price substitution from conventional sources•Although financial incentives are there for wind energy from govt.

Threat of New Entry (Low)

Threat of New Entry (Low)

Buyer Power (Low)Buyer Power (Low)

Supplier Power ( Low to Moderate)

Supplier Power ( Low to Moderate)

Threat of Substitutes (Moderate)

Threat of Substitutes (Moderate)

•High Exit Costs•Competitive pricing•Large global players like Vestas, GE wind etc.

•High Exit Costs•Competitive pricing•Large global players like Vestas, GE wind etc.

Competitive Rivalry (Moderate to High)Competitive Rivalry (Moderate to High)

SWOT AnalysisOpportunitiesOpportunitiesWeaknessesWeaknesses

Integrated Business Model•Reduces supplier

dependency• Benefit from cost efficiencies and economies of scale• Hassle free

solutions to customers • Greater control

over execution time line, cost & quality

• Development expertise in key components• Global resource

pool for faster designing & development• MW and multi-MW WTG models and Rotor blades developed indigenously

Wind Resource mapping

Wind Resource mapping

Site Identification

Site Identification

Land Acquisition

Land Acquisition

WTG and Component

Manufacturing

WTG and Component

Manufacturing

Site Development, Infrastructure

set-up and WTG installation

Site Development, Infrastructure

set-up and WTG installation

Operations and

Maintenance Services

Operations and

Maintenance Services

End-to-End Solution Provider

Technologies & Capabilities

Acquisitions and Alliances

Market Leader and Global presence

• Among the top three WTGs companies• Global presence across 5 continents • Market leader in India

• Competitive advantage through acquisitions of REpower & Hansen

StrengthsStrengths ThreatsThreats

OpportunitiesOpportunitiesWeaknessesWeaknesses

SWOT AnalysisSWOT Analysis

WEAKNESSES

Operational inefficiencies Huge growth in assets is diminishing the growth in profits

Unsupportive Stock Prices

Unfavourable Ratings from rating agencies

Weak Strategic Financial Management Inefficient Working Capital Management

StrengthsStrengths ThreatsThreats

OpportunitiesOpportunitiesWeaknessesWeaknesses

SWOT AnalysisSWOT Analysis

Environmental AwarenessEnvironmental awareness has increased. This factor is favourable for the wind power energy as its an option to thermal power. Suzlon is the market leader in India and has a strong global presence in this therefore, there is a high growth opportunity for Suzlon in future horizon.

Government InitiativesGovt. is providing tax exemption ,accelerated depreciation tax benefits and also providing subsidies for encouraging investment in remote areas of the country to generate employment.

Untapped offshore marketsSuzlon can have advantage of covering untapped offshore market. India has a coast line of 7600 km. Offshore wind turbines generally yields 40% higher outputs than turbines on onshore sites. So offshore expansion will be profitable to Suzlon.

Steady growth in demandIncreased electricity demand, environmental concerns and depleting sources of fossil fuels have increased the demand of renewable energy sources. Hence Suzlon can leverage from this growth in demand.

StrengthsStrengths ThreatsThreats

High Competition The govt. of India has approved FDI limits up to 74%. Although Suzlon is a market leader, its

technology efficiency is not as compared to global giants like VASTAS, GE Wind etc. So this initiative can be a threat for Suzlon.

Foreign Exchange Risk Due to global presence of Suzlon, there is default risk of exchange rate fluctuations. The exchange

rates are highly fluctuating since last couple of years and hence it has become riskier for Suzlon to do business globally.

Technology Risk Suzlon has to implement the fast changing technologies to compete in the market otherwise it will

lose the competitive advantage.Hindrances / Objections to Wind Power The main objection to wind power is due to other environmental costs. Many wind parks remain

shut-down for a part of the year because of bird migration. Larger turbines produce more power, but they also take more land to operate safely and effectively. Many eco-warriors object to the installation of wind parks by lobbying the govt. to look for alternative sources of energy.

OpportunitiesOpportunitiesWeaknessesWeaknesses

SWOT AnalysisSWOT AnalysisStrengthsStrengths ThreatsThreats

Suzlon-Current Growth Strategies

Horizontal growth acceleration

through M&A

Horizontal growth acceleration

through M&AVertical IntegrationVertical Integration Improving Cost

EfficiencyImproving Cost

EfficiencyFocus on High

Growth MarketsFocus on High

Growth MarketsStrategic Focus on Customer needs

(End-to-End)

Strategic Focus on Customer needs

(End-to-End)R&D and InnovationR&D and Innovation

Knowledge AcquisitionKnowledge Acquisition

• Acquired the technical know-how through permits and buying of smaller wind technology firms.

• Acquired the technical know-how through permits and buying of smaller wind technology firms.

Resource Mobilization

Resource Mobilization

• Optimum utilization of low costs resources, labour and other infrastructural facilities

• Optimum utilization of low costs resources, labour and other infrastructural facilities

Vertical Integration

Vertical Integration

• To eliminate supply chain constraints and ensure quicker delivery to customers

• To eliminate supply chain constraints and ensure quicker delivery to customers

Mergers and AcquisitionsMergers and Acquisitions

• Boosting its core competencies

• Integrate with its operations, and

• Have manageable consolidation risks

• Boosting its core competencies

• Integrate with its operations, and

• Have manageable consolidation risks

Expanding Global PresenceAustralia - Sustainable and internationally competitive renewable energy industryUSA – It has outpaced Germany in terms of capacityChina - Favorable policies & targetsIndia – Robust domestic demand

Expanding Global PresenceAustralia - Sustainable and internationally competitive renewable energy industryUSA – It has outpaced Germany in terms of capacityChina - Favorable policies & targetsIndia – Robust domestic demand

Global AcquisitionsHansen Transmission-Develops long term growth driver in terms of wind and industrial gearbox business.REpower Systems AG-Entry into large European markets; Complimentary product portfolio - offshore technology; Capitalize on know-how and brand equity

Global AcquisitionsHansen Transmission-Develops long term growth driver in terms of wind and industrial gearbox business.REpower Systems AG-Entry into large European markets; Complimentary product portfolio - offshore technology; Capitalize on know-how and brand equity

Organizational Structure

Functional Areas

Functional Areas

Corporate services

Corporate services

ManufacturingManufacturing

Business Units

Business Units

R&DR&D

Issues with the current Organizational Structure•The employees may experience dual authority like reporting to two bosses .•The matrix structure forces the managers to spend a great deal of time in meetings, hence time consuming •This structure also requires great effort to maintain power balance.

Issues with the current Organizational Structure•The employees may experience dual authority like reporting to two bosses .•The matrix structure forces the managers to spend a great deal of time in meetings, hence time consuming •This structure also requires great effort to maintain power balance.

• Suzlon has opted Project Centered Matrix Organization which focuses on two key factors: Customer Orientation Technology Leadership

• The Product & Project Management Organization ensures that customer expectations are met.• The functional organization focuses on the technical side of the business.

• Suzlon has opted Project Centered Matrix Organization which focuses on two key factors: Customer Orientation Technology Leadership

• The Product & Project Management Organization ensures that customer expectations are met.• The functional organization focuses on the technical side of the business.

Suzlon Technology Group

Suzlon Technology Group

Product and Project Management Organization

Product and Project Management Organization

Functional Organization

Functional Organization

Proposed Organizational Structure

CMD SuzlonCMD

Suzlon

Asia Asia

Functional Groups

Functional Groups

Technical groups

Technical groups ManufacturingManufacturing

AustraliaAustralia

Functional Groups

Functional Groups

Technical groups

Technical groups ManufacturingManufacturing

EuropeEurope

Functional Groups

Functional Groups

Technical groups

Technical groups ManufacturingManufacturing

North America

North America

Functional Groups

Functional Groups

Technical groups

Technical groups ManufacturingManufacturing

South America

South America

Functional Groups

Functional Groups

Technical groups

Technical groups ManufacturingManufacturing

Currently Suzlon is operating in more than 30 countries and expanding.

In the near future as Suzlon increases its foothold to other geographies, Geographical Organizational Structure will be more efficient in terms of managing different units of Suzlon and facilitating manufacture and deliver of products.

Better quality control over various geographic locations.

It will reduce cross culture management issues.

Potential New Target Markets

Argentina, Uruguay

Argentina, Uruguay

MoroccoMorocco EgyptEgypt Japan, Philippines, Taiwan, Thailand

Japan, Philippines, Taiwan, ThailandMexicoMexico

Potential New Target Markets

• It’s wind resources are unrivalled in the Latin American region and estimated to be enough to supply the regions entire electricity demand several times over, but till date only a tiny amount of the potential, 60 MW has been developed .

• It’s wind resources are unrivalled in the Latin American region and estimated to be enough to supply the regions entire electricity demand several times over, but till date only a tiny amount of the potential, 60 MW has been developed .

ArgentinaArgentina

• High GDP growth of 8% has led to a dramatic rise in electricity consumption and approx. 30 GW of new generation capacity will be needed by 2021. The government has set a target of renewable energy from 6.4% in 2008 to 20% in 2022, with an 800 MW target for wind capacity.

• High GDP growth of 8% has led to a dramatic rise in electricity consumption and approx. 30 GW of new generation capacity will be needed by 2021. The government has set a target of renewable energy from 6.4% in 2008 to 20% in 2022, with an 800 MW target for wind capacity.

ThailandThailand

• The country has a present generation capacity of 33 MW of wind power, but the potential is estimated at around 55 GW. The government has set a target for 40% of its electricity to be generated by renewable sources by 2020, up from the current 33%.

• The country has a present generation capacity of 33 MW of wind power, but the potential is estimated at around 55 GW. The government has set a target for 40% of its electricity to be generated by renewable sources by 2020, up from the current 33%.

PhilippinesPhilippines

• The country has an outstanding wind resource, especially in the Oaxaca region. It’s installed wind capacity has increased more than 5 times since the end of 2009.

• The country has an outstanding wind resource, especially in the Oaxaca region. It’s installed wind capacity has increased more than 5 times since the end of 2009.MexicoMexico

• After the recent nuclear disaster Japan is planning to switch alternate sources of energy like wind power, solar, etc.

• Other countries such as Uruguay, Egypt, Morocco also have promising wind energy potential.

• After the recent nuclear disaster Japan is planning to switch alternate sources of energy like wind power, solar, etc.

• Other countries such as Uruguay, Egypt, Morocco also have promising wind energy potential.OthersOthers

Proposed Strategic Initiatives

Repowering and RecyclingRepowering and Recycling

Wind-Solar Hybrid SystemsWind-Solar Hybrid Systems

Gearless turbine - Direct Drive TechnologyGearless turbine - Direct Drive Technology

Blue Ocean Strategy-B2C Blue Ocean Strategy-B2C

Brand Promotion – Social MediaBrand Promotion – Social Media

Repowering and Recycling Repowering involves the replacement of old WTGs with new and more cost efficient WTGs. According to industry research, over 10,500 machines that were installed during the mid ‘80s and

‘90s will soon be replaced by larger, more efficient turbines.

84% of nacelle can be recycled84% of nacelle can be recycled93% of Tower parts can be recycled93% of Tower parts can be recycled

42 % of the rotor parts can be recycled42 % of the rotor parts can be recycled 52% of other parts can be recycled52% of other parts can be recycled

Our Recommendation Repowering is one of the growth drivers to the future market for wind power Suzlon should also initiate recycling dismantled wind turbines as well as production of more MWh

per kilogram wind turbine.

Our Recommendation Repowering is one of the growth drivers to the future market for wind power Suzlon should also initiate recycling dismantled wind turbines as well as production of more MWh

per kilogram wind turbine.

Wind-Solar Hybrid Systems

Hybrid systems make optimal use of sunlight and wind speeds - the two main resources readily available.Hybrid systems make optimal use of sunlight and wind speeds - the two main resources readily available.

These can be integrated with different energy sources such as PV or diesel generators and requires little maintenance and can be easily assembled and installed on site.These can be integrated with different energy sources such as PV or diesel generators and requires little maintenance and can be easily assembled and installed on site.

Typical applications range from house or village electrification, small enterprises to water pumping and is ideal for electrification of remote areas where reliable power supply is not available and eliminates reliance on power grids.

Typical applications range from house or village electrification, small enterprises to water pumping and is ideal for electrification of remote areas where reliable power supply is not available and eliminates reliance on power grids.

Street Lamps using Wind Solar Hybrid technology are already a growing marketStreet Lamps using Wind Solar Hybrid technology are already a growing market

Suzlon being a leading player should work on to tap the big potential the sector has been offering.Suzlon being a leading player should work on to tap the big potential the sector has been offering.

The product has scope to be commercialized on a global scale and will increase the foothold of Suzlon in foreign markets.The product has scope to be commercialized on a global scale and will increase the foothold of Suzlon in foreign markets.

• Suzlon needs to upgrade its existing turbines and also add new products to its portfolio

• Gearless wind turbines which work on direct-drive generator technology making them more efficient and cost effective to maintain.

• Conventional gearboxes used in turbines are quite vulnerable to failure

• Maintaining geared turbines for offshore installations incurs high repair costs

• Gearless turbines still a developing technology

• Huge market potential in Europe, US and Asia in the next decade.

• Suzlon needs to upgrade its existing turbines and also add new products to its portfolio

• Gearless wind turbines which work on direct-drive generator technology making them more efficient and cost effective to maintain.

• Conventional gearboxes used in turbines are quite vulnerable to failure

• Maintaining geared turbines for offshore installations incurs high repair costs

• Gearless turbines still a developing technology

• Huge market potential in Europe, US and Asia in the next decade.

Our Recommendation:Acquire a company in the domestic

market which has expertise on direct-drive generator technology and

leverage on the technology

Our Recommendation:Acquire a company in the domestic

market which has expertise on direct-drive generator technology and

leverage on the technology

Gearless turbine - Direct Drive TechnologyGearless turbine - Direct Drive Technology

Blue Ocean Strategy - B2CBlue Ocean Strategy - B2C

B-to-C Consumers

B-to-C Consumers

B-to-B Consumers

B-to-B Consumers

Vast majority of consumers today want to access more Renewable energyVast majority of consumers today want to access more Renewable energy

Surveys shows that 90 per cent of consumers globally want more renewable energy ahead of further investments in fossil fuels and nuclear plants.

Surveys shows that 90 per cent of consumers globally want more renewable energy ahead of further investments in fossil fuels and nuclear plants.

65 per cent of people claim they would like to buy products made using wind energy65 per cent of people claim they would like to buy products made using wind energy

Suzlon should target more B-to-C companies. It can mean fast-tracking of more renewable and wind energy

Suzlon should target more B-to-C companies. It can mean fast-tracking of more renewable and wind energy

Suzlon can move ahead of the competition and create a blue ocean by indirectly targeting B-to-C consumers and thus boost wind turbine sales.

Suzlon can move ahead of the competition and create a blue ocean by indirectly targeting B-to-C consumers and thus boost wind turbine sales.

Brand Promotion – Social Media

Ample evidence of the power of internet in the B2B spaceAmple evidence of the power of internet in the B2B space

92% B2B requirements commence with an online search 75% B2B decisions are finalized online 92% B2B requirements commence with an online search 75% B2B decisions are finalized online

What if something could convert this scope into business inflow for Suzlon?What if something could convert this scope into business inflow for Suzlon?

A response to this highlighting Suzlon could straight away get the business for Suzlon A response to this highlighting Suzlon could straight away get the business for Suzlon

Suzlon by being live in the Social Media can generate more business Suzlon by being live in the Social Media can generate more business

Strategy - Medium Term

Support Wind R&D in private sectors and educational institutions like IIT’s. Target firms which exceed pollution limits with its signature end-to-end services. Manufacture when business stable & market developed or consider Acquisitions Explore opportunities in African and South East Asian markets Focus on offshore markets Through forward integration venture in electricity generation through wind power Go for franchise model for transmission and distribution of wind power energy

Support Wind R&D in private sectors and educational institutions like IIT’s. Target firms which exceed pollution limits with its signature end-to-end services. Manufacture when business stable & market developed or consider Acquisitions Explore opportunities in African and South East Asian markets Focus on offshore markets Through forward integration venture in electricity generation through wind power Go for franchise model for transmission and distribution of wind power energy

Blue Chip Mantras

Lead, or aspire to lead Be #1 or #2 in the business

Global Potential

Explore the world

markets

Innovativeness 20% revenues from products

launched in the last 3 years

Ruthless focus on financial returns

Customer Centricity

Suzlon’s Wind Turbines business should aim to fit into each of the following 5 Blue-Chip Mantras:

1. Suzlon is a world class player in wind turbines.

2. ‘Global’ potential3. R&D provides innovation 4. Promising Returns5. Extremely Customer Centric

Debt Restructuring

Presently outstanding debt of USD 2.6 bn (including FCCBs of USD 654 mn) Debt repayment schedules of USD 150 mn and 283 mn for FY13E and FY14E, respectively. FCCBs worth USD 389 mn due for conversion in FY13E, USD 90 mn in FY15E, while the balance USD

175 mn in FY16E Proceeds of USD 187 mn from the Hansen stake sale of 26% and receivable of approx. USD 200 mn

from Edison, to aid the debt repayments Company to raise USD 1.1 bn via equity and debt in 2011

Suzlon has burdened itself with high debt on its balance sheet with a leverage of 1.9x with interest payments of more than INR 1000 cr annually

It should not take further obligations that might affect its financials negatively in the short term

Suzlon has burdened itself with high debt on its balance sheet with a leverage of 1.9x with interest payments of more than INR 1000 cr annually

It should not take further obligations that might affect its financials negatively in the short term

Future Projections(Rs cr) 2010-11 2010-11 Q4 2011-12 Q1 2011-12E 2012-13E 2013-14E

Revenue 18090 7372 4326 26000 29900 34385

Net Profit -1103.43 309 60 2080 2392 3782

*calculated on the basis of existing market conditions

Listing overseas in NYSE/DAX will improve the liquidity of the company’s stock and provide access to new capital markets

Publishing additional set of financial statements in accordance with US GAAP / IFRS will be more relevant to its potential US and European investors, who make up more than 50% of Suzlon's revenue.

Joint Ventures in select potential new markets instead of acquisitions which would reduce its investment cash outflows

Post complete acquisition of RE Power, Suzlon should leverage and garner maximum potential from RE and integrate RE’s operations with its global operations to increase

synergy and optimization

Reduce operational expenditures and increase efficiency to boost bottom-line

Financial Strategies

Gain competitive advantage through Corporate Social Responsibility

Forward integration in the value chain by Electricity Generation

Focus on geographical diversification of business to reduce risk

Reduce carbon footprints by focusing on addressing emissions in all phases of wind plant’s life cycle

Exploit huge opportunities in the German market where Nuclear Plants are being phased out and Wind energy share is expected to increase

Achieve Six-Sigma standards in manufacturing operations

Improvements in turbine size, efficiency, reliability and lifetime. Development of cost-effective local storage solutions such as fuel cells. Research on new cost effective technologies like Vertical Axis Turbines, Gorlov Helical Turbines . Diversify into other renewable technologies like Solar PV .

Strategic Roadmap

References

www.suzlon.com Annual Reports and Investors Presentations

http://economictimes.indiatimes.com/ http://www.bloomberg.com http://www.wikipedia.com/wiki/ Reports (Source: http://www.gwec.net/)

Indian Wind Energy Outlook 2011 Global Wind Energy Outlook 2010

Thank You