Suzlon Energy Limited, the fifth largest wind turbine maker, was in full swing during the fourth quarter of its 2011 fiscal year, which ended on March 31, after capitalizing on the growing market of developing countries and wind energy, particularly offshore.
Consolidated sales of wind turbines for the January to March 2011 period rose to 72.76 billion rupees ($1.622 billion), up by almost 20 percent from the 60.84 billion rupees of the comparable period in 2010.
This made the India-based company recover from a net loss of 1.88 billion rupees in the fourth quarter of 2010 fiscal year to a net profit of 4.316 billion rupees in the recent quarter.
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It had earnings before interest, taxes, depreciation, and amortization of 10.68 billion rupees, up by 74 percent from 6.14 billion rupees.
“Our focus on emerging and key developed markets, along with offshore, is paying dividends with a robust orderbook and a strong pipeline of projects under discussion,” said Tulsi Tanti, chairperson of Suzlon Group.
Mr. Tanti said the domestic market alone had remarkable growth, which came along the successful launching of its S9X and 3XM turbines and purchasing of REpower, a leading German wind turbine maker.
During this period, the company claimed to hit its highest-recorded orderbook of 4,639 megawatts capacity and being valued at $6.7 billion.
Aside from its home country – India, where it holds over 50 percent of the market share, the company cited Brazil, Canada, Germany, Britain and the United States as among the notable markets it has operated in.
The company was also able to push a “squeeze out” process in fully acquiring REpower, after it has bought out 95 percent of the stakes following Germany’s regulatory rules.
Under such rule, a company with 95 percent shares can acquire the remaining minority shareholders by paying them an ample cash payment.
Global wind energy
Thanks to the growing market in Asia, specifically the booming Chinese one, the global installed wind power capacity reached 194.4 GW despite a decrease in the traditional markets of North America and Europe.
But the Global Wind Energy Council recognized the contributions of the emerging markets in Latin America, such as Brazil, Mexico and the Caribbean that together recorded a growth of over 50 percent last year.
Suzlon entered the marketplace, which was originally dominated by Enercon, and diversified its key players. It even announced establishing a local manufacturing plant in Brazil.
In 2010, Suzlon ranks second to Vestas in the Australian market, having 25 percent of the market share, and significantly competed with Enercon in the Turkish market.
Outlook for 2011
Suzlon expects a solid 2012 fiscal, anticipating a continued growth in the emerging markets and the offshore wind energy. The company forecast its sales and EBIT to respectively increase to as much as $5.8 billion and by 8 percent.
G.W.E.C., in its 2010 global wind power report, said there is some optimism going forward in the market that will likely to translate into actual projects in 2011 and 2012. These investments are still expected to come from China and by large European offshore wind farms.
