Suzlon Energy Limited

COMPANY DESCRIPTION
Suzlon's story began in 1995 when founder Tulsi Tanti was managing a 20-employee textile company. Suzlon is a vertically integrated wind power company. Suzlon delivers end-to-end wind power solutions from assembly, installation to commissioning.
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The company manufactures blades, generators, panels, and towers in-house, as well as gearboxes through its partial ownership of Hansen Transmissions and state-of-theart large or offshore turbines through its subsidiary Repower.

Suzlon is a multinational company with offices, R&D and technology centers, manufacturing facilities and service support centers spread across the globe.

SNAPSHOT . Belgium and USA • End-to-end supplier of high quality wind turbines • Extended product programme and technologies through acquisition of Repower and Hansen Transmissions .000 employees – installed 5600 MW+ • R&D in Germany and Holland • Production facilities in India. • Company founded 1995 in India • 5th largest wind turbine supplier world wide • Presence across 5 continents and 14 countries • 15.SUZLON ENERGY LTD. China.

Control equipment 2. Nacelle covers 4. Rotor blades 5. Wind turbine generators Services: 1.SUZLON ENERGY LTD. Installation services 2. Site identification and development 4. Operation and maintenance services 3. Wind resource mapping . Towers 6. Gearboxes 3. Products: 1.SNAPSHOT .

In order to achieve the mission. . qualitative supplier base and a highly motivated workforce by delivering quality products and services. they commit themselves to: •Institutionalize customer focus with timely delivery. products and continual improvement •Total quality in every aspect of organization creating an environment conducive for team work of a highly trained and motivated workforce who are empowered to reach their fullest potential.VISION AND MISSION Vison: •To be among the top three wind energy companies in the world •To be the most respected brand •To be the best team and place to work at •To be the fastest growing and most profitable business Mission: Mission is to maintain a satisfied customer base. quality and product performance that satisfies customers needs and expectations there by creating confidence and long term relationships with our customer •Establish a qualitative supplier base having strong focus on quality systems.

Diffusion of knowledge •Acquired the technical know-how through licenses and purchasing of smaller wind technology companies Resource mobilization •Leveraged factor costs . and •have manageable integration risks . labour and other infrastructural facilities Vertical Integration •To reduce supply chain bottlenecks and ensure quicker delivery to customers Mergers and Acquisitions •complementing its key strengths •synergistic with its operations.availability of low costs resources.SUZLON ENERGY LTD.GROWTH STORY.

25 MW Wind Turbine Generator is commissioned for M/s Velathal Spinning Mills Limited 2004.2005: Suzlon Energy Ltd signs up MSPL's 3.MILESTONES 2003 . S60-1000 KW capacity model Suzlon Energy Ltd is commissioned for its first wind turbine in USA Suzlon Energy Ltd first 1.P. A.75 MW Wind Power Project Suzlon Energy Ltd crosses 600 MW installation mark Suzlon Energy Ltd crosses 500 MW mark with a 6 MW installation at Tirumala Tirupathi Devasthanum. Suzlon Energy Australia Pty Ltd incorporated .2004: Centre for Wind Energy Technology (C-WET) type test certifies Suzlon Energy Ltd.

2006: BTM Report .1 MW capacity turbine in Australia Suzlon Energy Ltd is commissioned its first Wind Turbine Generator in China Suzlon Energy Ltd signs contract with British Petroleum .Suzlon Energy Ltd 6th in the Top 10 Manufacturers in the world Suzlon Energy Ltd crosses 1 GW (1000 MW) installation mark 2 MW Wind Turbine Generators for Tamil Nadu Suzlon Energy Ltd crosses the 800 MW installation mark 2006 .2005 .2008: Suzlon Energy Ltd signs contract with Tierra Energy of Austin.for 40 MW in Maharashtra .for 42 units MW wind turbine Suzlon Energy Ltd is commissioned its first 2. Belgium 2007 .2007: Suzlon Energy Ltd market share in India crosses 50% Suzlon Energy Ltd is ranked 5th in the world among Wind Turbine Generator manufacturers for capacity installed in 2007 Suzlon Energy Ltd announces strategic acquisition of Hansen Transmission International NV. Texas .

'The Suzlon Edge‘ Suzlon Energy Ltd is certified ISO/IEC 27001:2005 compliant by Bureau Veritas Certification (India) Pvt.2010: Harvard Business School concludes a case study on Suzlon .2009: Suzlon Energy Ltd is first S88-2. in Gujarat. India Hansen Transmission International completes provisional listing of IPO on London Stock Exchange 2009 .1 MW wind turbine is commissioned by Deco Light Ceramics Ltd. . Ltd.2008 .

measures & analyzes quality level to provide a display/report of current failures. potential failures and causes in an objective manner . Encourages & engages recognition of good work in the quality process to appreciate employees with superior performance Drives quality councils to bring together the professional quality staff for a planned governance & communication on a regular basis. reliable and robust user friendly product. cultural bandwidth. . Monitors. Quality Management at Suzlon seeks to continually leverage upon its size by strengthening its execution capability to deliver a customer satisfied.SUZLON QUALITY MANAGEMENT Quality Management Strategy is a practical approach that is well adapted to excel Suzlon’s strategic business unit growth. quality levels of manufacturing verticals along with backward integration.

Structure of Suzlon Energy Suzlon Energy Domestic Subsidiarie s Suzlon Windfar m Services Suzlon Gujarat WindPar k Suzlon Green Power Suzlon Power Infra Suzlon Generat or International Subsidiaries AE Rotor Holdin g Suzlon Windpar k Mgmt Suzlon Energy Australi a Suzlon Rotor Suzlon Energy Windpar k Olsdorf German y SE Drive Technik Suzlon Wind Energy USA Suzlon Energy Denmar k Cannon Ball Wind Energy USA Suzlon Engitec h Suzlon Structur e AE Rotor Netherland s Suzlon Energy Netherland s .

COMPETITORS . Top Tier Turbine OEMs • Vestas • GE Energy • Gamesa Eólica • Enercon GmbH • Siemens Wind Power • Acciona Windpower • REpower Systems AG • Goldwind Science and Technology • Sinovel Wind Co • Nordex AG • Dongfang Turbine .SUZLON ENERGY LTD.

PORTER’S FIVE FORCES ANALYSIS Buyer Power (Moderate) Very few potential buyers Sensitive to Pricing Power Purchase Structure Industry Rivalry (Moderate to High) High exit costs Competitive pricing Large/Global Players Supplier Power (Moderate) High demand for composites Backward integration by Key Players Threat of Substitutes (Moderate to High) Other renewable technologies Price substitution from conventional sources If there is Fall of oil and gas prices Entry Barriers (High) Investment costs in Technology Quality Control Standards Lack if experience Access to resources Porter Five Forces .

SUZLON ENERGY LTD.SWOT . Strengths Integrated Business Model Provider of End to End Solutions Vertically Integrated (supply chain) Market Leader Innovation Strong Human Resource base Weakness Operational Risk -Cash conversion -Growth in assets overweighing profits Financial Performance Funding its acquisitions (Rising debt) High inventory levels SWOT Opportunity Steady growth in demand Untapped offshore markets Policy support for renewable energy Tax exemptions Increasing environmental concerns Replacement demand in foreign markets Threats Intense competition Falling oil and gas prices Dependency on global markets Forex risk Technological risk Shrinking order book Rising cost of resources .

•Increasing production capacity and strengthening vertical integration •Augmenting Management Bandwidth •Strong focus on driving global growth •Moving up Value Chain with comprehensive end-to-end solutions .SUZLON ENERGY LTD.CORPORATE STRATEGY . Improving Cost Efficiency Growth Acceleration Focus on High Growth Markets •Develop next-generation products with focus on improving efficiency/costper-kWh eg: S-9x suits for low winds.

SUZLON ENERGY LTD.BUSINESS LEVEL STRATEGY . Integrated Business Model •Allows customers to benefit from cost efficiencies and economies of scale in wind farm •Provides hassle free solutions to customers •Provides greater control over execution time line •Control of value chain from planning to maintenance •Leveraging experience across wind energy value chain Growth Improving Cost Efficiency • Research and Development • Innovation • Vertical Integration • Strategic focus on customer needs Focus on High Growth • End to End solutions Market .

SUZLON ENERGY LTD. •Research and Development – Best of all World Wind turbine R&D in Germany Rotor blade R&D in Netherlands Gearbox R&D in Belgium Product & Process Engg. India Technology Campus Germany Engineering Centre India Innovati on Centre Europe •Vertical Integration .BUSINESS LEVEL STRATEGY .

•Presence in high growth markets •Right product for the right market .

and Germany •Suzlon has acquired forging and foundry capacity in India Global Acquisitions Hansen Transmission •Plugs critical gap in suzlon’s supply chain (gearbox .offshore technology •Improve REpower margins through synergy •Capitalize on know-how and brand equity .GLOBAL STRATEGY . USA.Sustainable and internationally competitive renewable energy industry •USA – It has outpaced Germany in terms of capacity •China .longest lead time) •Develops long term growth driver in terms of wind and industrial gearbox business REpower Systems AG •Entry into large European markets •Complimentary product portfolio .Favorable policies & targets •Foray into new markets – Brazil and Sri Lanka •India – Robust domestic demand Global Manufacturing Capacity •Manufacturing facilities in India.SUZLON ENERGY LTD. China. Expanding Global Presence •Australia .

1.000MW .CHALLENGES .increased freight cost •Growth has been fragmented among a growing number of smaller. Working Capital Management •Huge inventory hold-up •Poor collections . which could impact demand 3.SUZLON ENERGY LTD. Increased uncertainty on Order Intake – Technology Issues •Blade crack issue .Incremental order intake from US will be challenging •Order sizes have shrunk .supply exceeding demand in the medium term 4. Large capacity + Weak demand = Margin Pressure Industry majors are adding ~13. Transition to being a global supplier •Suzlon has negative operating leverage . more dispersed markets 2.pricing power will shift towards wind farm developers .Credit availability.high start up costs for manufacturing facilities .

2011 (17:00) July 25.28-billion deal for 1. 2011 (10:00) April 4. 5.Date October 242011 (19:00) October 13.000 MW project . 2011 (07:00) October 5. 2011 (22:00) May 27. 2011 (19:50) February 11. 2011 (18:35) March 14. 650-crore order for wind power projects Suzlon gets order from Nalco Suzlon Energy signs first S African wind turbine deal Suzlon Energy Q4 net profit at Rs. 2011 (14:00) August 17. 2011 (11:00) July 15. 2011 (11:00) September 28.3 MW project from Indian Oil Suzlon Energy promoters pledge 36% stake Suzlon to sell 26% in Hansen Transmission to German firm Suzlon Energy bags Rs. 890 crore via stake sale in Hansen Transmissions Suzlon bags order from Sri Lankan company Suzlon bags 25.25% stake in Suzlon Suzlon to replace Grasim in Nifty index Suzlon in $1. 2011 (16:00) News Suzlon to sell non-critical assets Suzlon gets Rs. 2011 (10:00) January 28.59 cr Suzlon to buyout remaining stake in Repower Promoters sell 2. 2011 (12:00) June 16.000 crore Suzlon Energy bags 48. 2011 (13:00) May 16. 2011 (11:00) August 2. 2011 (11:00) October 12.5 MW order from GAIL Suzlon shareholders' clear proposal to raise Rs. 431.

71)% .55 (-4.35 November 15th.SUZLON ENERGY LTD 31. 2011 15:59 -1.

THANK YOU .

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