Siemens Gamesa's India wind biz up for sale at $1 billion valuation
Also read | Niva Bupa ropes in Kotak, Axis, HDFC & three others to run its ₹3,000-crore IPO “We will only focus on attractive markets where we have a stable regulatory framework and attractive profit pool, and a value-based customer landscape and where there's a match between the market requirements and our offering," he said, presenting a turnaround plan on 8 May during the company’s earnings call. “We may also serve other markets opportunistically, but only if it makes real commercial sense," he added, noting that Europe and the US fit this criteria and it will ramp up operations in these geographies.
“We will not try to defend markets in which there is no money to be made in the medium term as far as margins are concerned," Bruch told Recharge, an energy-focused news platform on 8 May, referring to Siemens Gamesa. In India, Siemens Gamesa set up in 2009, and has an installed capacity of 9 GW.
The company has blade factories in Nellore (Andhra Pradesh), a nacelle factory in Mamandur (Chennai, Tamil Nadu), and an operations and maintenance centre in Red Hills (Chennai). The company is market leader with a 40% market share, according to consultancy Wood Mackenzie.
In the Indian market, Gamesa competes with players such as Suzlon Energy, which is listed on the bourses and has seen a surge in its stock price post a restructuring of debt, in which its lenders reportedly took a haircut of 62%. “The performance of Suzlon on the stock market also gives a lot of comfort to other EPC players such as Gamesa on the lucrative valuation that they can extract," the second person added.
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