Professional Documents
Culture Documents
Source Capitaline
Company Vision
The company aims to be a technology leader, to be among the top 3
wind energy companies in the world by leveraging technological and
commercial acumen to exceed customer expectations and to be the most
respectable brand which grow fast and is the most profitable company
employing the best team in the sector.
Company Values
People strength, aggressive vertical integration strategy, strong R&D
Team, expanding Manufacturing capability.
Company Overview
Suzlon Energy Limited (Suzlon) is a wind power company. The
company along with its subsidiaries engages in designing, developing
and manufacturing of wind turbine generators and related components
such as rotor blades, control panels, nacelle cover, tubular towers,
generators and gearboxes. Further, the company also provides
consultancy, design, manufacturing, installation, operation and
maintenance services as well as is involved in wind resource mapping,
identification of suitable sites and technical planning of wind power
projects. The company principally operates in India, China, The
Americas, Europe, New Zealand, South Korea, South Africa and
Australia. Suzlon, a major force in Global Wind Industry (Ranked 5th
Worldwide) by installed capacity. It provides end-to-end power
solutions. The company holds nearly 10.5% share in the global market.
Now, the company has the total production capacity of over 3000 MW.
The company currently has a combined manufacturing base of 2,700
MW of annual capacity, and is undertaking an aggressive expansion
program to expand its base to 5,700 MW of capacity in FY2009.
Aggressive growth
The company has emerged as a formidable force in Mergers &
Acquisitions. In March 2006, it acquired Hansen Transmissions, the
world's second largest turbine gearbox maker, for US$585m.In June
2007, Suzlon finally saw off French nuclear group Areva in a hard-
fought battle for Repower, paying US$1.9bn for its German rival.
Order Book:
Suzlon’s order book position is a reflection of its strong market position
and consistency in delivering to their customers. Its order book stands
at around USD 4,335 million. The domestic order book position is for a
capacity of 441 MW and international orders for 3,726 MW.
Clientele:
Name Country
MSPL LTD. India
Bajaj Auto Ltd India
TATA Group India
RELIANCE Group India
Edision Mission Group U.S.A
John Deere Wind Energy U.S.A
Tierra Energy U.S.A
Maestrale Green Energy Italy
Technologias Energeticas Sa Portugal
Ayen Energy Company Turkey
SIIF Energy Brazil
Australia Gas & Light Australia
Competitors:
Gamesa(Spain)
Vestas(Spain)
Enercon(Germany)
GE Wind(USA)
Global Wind Energy ETF(USA)
Nordex(Netherlands)
GoldWind(China)
Clipper Windpower(UK)
Bhel(India)
GE Wind Energy(US Subisidiary,India)
Enercon (India) Ltd.
Vestas Wind Technology India Pvt. Ltd.
NEPC India Ltd.
Strengths: SWOT ANALYSIS
• Skill Amalgamation
Cost Reduction---It has blended the best resources
across the globe. It has competitive R&D in Europe. The
Manufacturing Units in India and China proves to be
cost effective. Suzlon has continuously reduced capital
cost per unit of power generation and also has
maintained a consistent new product launch schedule.
Reverse outsourcing----The Company has international
head offices in Aarhus, Denmark where it has wide base
of wind energy expertise and large network of
components suppliers. The skilled workforce is available
to the company. Globally renowned wind energy
companies’ presence like Vetas and NEG Micon makes
it a hub of talented workforce and technology.
• End to End Solutions---Planning of Wind Farm Systems, Land
Acquisition, Development and Technical Design., Infrastructure
and Equipment, O&M services. Suzlon offers customers' end-
to-end wind energy solutions, including wind resource mapping,
site development and installation, and finally operations &
maintenance services in India. This allows Suzlon to offer
Indian customers economies of scale, and eliminates the need
for customer involvement in the complex process of wind farm
development.
• Vertical Integration and Amalgamation-- Suzlon is a
vertically integrated wind turbine manufacturer – with
manufacturing capability along the full value chain – ranging
from components to complete wind turbine systems.
• Market leadership in India and Global Presence- The
industry's outlook to turn favorable by 2010 as easing credit and
lower costs boost demand from the U.S., Europe, China and
India.
• Growth-Growing at 29% CAGR for past 10 years, higher than
industry rate.
• Integrated Business Model-The Company plans to enter in to
Solar and Bio-fuel Business. The company is conducting
feasibility study for the further approach in this business. This
will help the company to produce 10-20 MW additionally. It has
become global/ world-wide sponsor for CNN International
innovative capsule on environment preservation.
• Operational Risk
Wind Turbines
Components
Rotor Blade
Gearbox
Control Panels
Nacelle Cover
Tubular Towers
Services:
Wind Resource Mapping
Identification of Suitable Sites
Technical Planning of Wind Power Projects
Services and Maintenance
Project Development
Wind Farms Development
Financial Overview: (cr.)
2008 2007 2006
Equity Paid Up 299.39 287.76 287.53
Networth 6937.44 3701.58 2796.89
10022.1
Capital Employed 8 4838.22 3147.26
Gross Block 779.2 567.04 400.41
Net Working Capital 4455.85 3551.78 2482.59
Current Assets 7348.74 5346.93 3911.84
Current Liabilities and
Provisions 2892.89 1795.15 1429.25
12915.0
Total Assets/Liabilities 7 6633.37 4576.51
Gross Sales 6926.01 5380.37 3788.46
Net Sales 6926.01 5380.37 3788.46
Other Income 151.36 88.1 69.28
Value Of Output 7080.15 5448.97 3899.06
Cost of Production 4603.69 3532.6 2483.66
Selling Cost 339.68 266.24 120.72
PBIDT 1581.61 1294.54 1003.09
PBDT 1442 1193.07 948.53
PBIT 1495.4 1221.05 957.22
PBT 1355.79 1119.58 902.66
CONCLUSION:
At this price stock is having very low downside risk. The entire
negative has been discounted in the price. Investor with low risk
appetite could start accumulating this stock Investors can initiate fresh
long positions at the dips around the level of 55.The Investors if they
are holding the stock can remain invested. We expect a return of 50-
70% from this level.
Suhail – Zaman 09312940496 011—23508710 suhail@rrfcl.com
Rekha Chauhan 09999803191 011—23508445 rekha@rrfcl.com
RR Information & 47, MM Road Jhandewalan New Delhi-110055 (INDIA)
Investment Research 011-23636362/63
Pvt. Ltd. www.rrfinance.com
Disclaimer
Kindly read the Risk Disclosure Documents carefully before investing in Equity Shares, Derivatives or other instruments traded
on the Stock Exchanges. RR would include RR Financial Consultants Ltd. and its subsidiaries, group companies, employees
and affiliates. The information contained herein is strictly confidential and meant solely for the selected recipient and may not be
altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in
any form, without prior written consent of RR. The information contained herein is obtained from public sources and sources
believed to be reliable, but independent verification has not been made nor is its accuracy or completeness guaranteed. RR or
their employees may have or may not have an outstanding buy or sell position or holding or interest in the products mentioned
herein. The contents and the information herein is solely for informational purpose and may not be used or considered as an
offer document or solicitation of offer to buy or sell or subscribe for securities or other financial and insurance products and
instruments. Nothing in this report constitutes investment, legal, accounting and/or tax advice or a representation that any
investment or strategy is suitable or appropriate to recipients specific circumstances. The securities and products discussed and
opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on
their own investment objectives, financial positions and needs. Please note that fixed deposits, bonds, debentures are
loans/lending instruments and the investor must satisfy himself/herself on the financial health of the company/bank/institution
before making any investment. RR and/or its affiliates take no guarantee of soundness of any company or scheme. RR has/will
make available all required information to the prospective investor if asked for in respect of any scheme/fixed
deposit/bond/loan/debenture. RR is only acting as a broker/distributor and is not representing any company in any manner
except to distribute its schemes. Mutual Fund Investments are subject to market risks, read the offer document carefully before
investing. Any recipient herein may not take the content in substitution for the exercise of independent judgment. The recipient
should independently evaluate the investment risks of any scheme of a mutual fund. RR and its affiliates accept no liability for
any loss or damage of any kind arising out of the use of any information contained herein. Past performance is not necessarily a
guide to future performance. Actual results may differ materially from those set forth in projections. RR may have issued other
reports that are inconsistent with and reach different conclusion from the information presented in this report. The information
herein is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any
locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law,
regulation or which would subject RR and its affiliates to any registration or licensing requirement within such jurisdiction. The
securities and products described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors.
Persons in whose possession this document may come are required to inform them of and to observe such restriction(s). The
display, description or references to any products, services, publications or links herein shall not constitute an endorsement by
RR. Insurance is a subject matter of solicitation. Kindly also note all the risk disclosure documents carefully before investing in
Equity Shares, IPO’s, Mutual Fund Schemes, Insurance Schemes, Fixed Deposit schemes, Debt offers, Hybrid Instruments, or
other instruments traded on Stock Exchanges or otherwise. Prospective investors can get all details and information from the
sites of SEBI, IRDA, AMFI or respective Mutual Fund Companies, Insurance Companies, Rating Agencies, Stock Exchanges
and individual corporate websites. Prospective investors are advised to fully satisfy themselves before making any investment
decision
NSE - INB 231219636, INF 231219636 BSE - INB 011219632