Suzlon which has installed a capacity of around 370Mw this half year out of a total installed of about 1100Mw has been consistent in the domestic market in spite of increasing competition in the domestic market from players like Enercon and Vestas.
This has been made possible, as the company still leads the way with a very strong distribution channel and network. Suzlon has huge network of High Networth Individuals(HNI), SMB and corporations that do one off wind investing in September and March, as a part of their financial tax planning for the depreciation benefits in wind investing.
The company has recently announced that it plans to enter new regions including the African market and the Latin American market in the coming years.
Suzlon has mentioned that it expects the Asian market and off shore wind market in Europe to contribute to the growth of the market, significantly over the next five years. Suzlon has a presence in the offshore wind industry through its subsidiary REpower.
The company has also mentioned that it plans to expand in the highly competitive Chinese domestic market a number of times recently. Its current market share is about 3.4% in China and the company has gone on record saying that they want to take the Chinese piece of the business to the next level.
According to the Chairman, Tulsi Tanti, “We expect at least 30 percent of the group’s revenue has to come from China, we should achieve that in five years.China accounts for about 10 percent of the group’s total revenue.”
The company had recently announced an ambitious plan for China in the medium term, that included a research and development centre in China and listing its Chinese subsidiary, Suzlon Energy (Tianjin) Ltd, on the Hong Kong Stock Exchange.
As a major first step in this ambitious plan, Suzlon on Friday, has announced the appointment of He Yaozu as CEO and country manager of its China operations, Suzlon Energy Tianjin Limited. With this appointment Suzlon has become the first wind energy company in China to appoint a Chinese CEO and Mr. He Yaozu has an ambitious road map set ahead of him by the company.
The expectations from the company are also high as they expect him to lead the growth of Suzlon in the domestic market as they look to increase their market share in what is the largest and most competitive wind market in China.
Mr. He Yaozu has brought with him an impressive track record, having been a senior adviser to China Machinery New Energy Co, serves as a non-executive director of China Green Power Limited. He has also served on the board of Hoi Sing Industrial Holding Company. He was previously managing director of Global Infrastructure Company (Asia) Limited and, prior to that, managing director of Ogden Energy in China. He is a senior fellow of the Hong Kong Institute of Directors.
According to this report, Mr. He Yaozu said: “I have watched Suzlon’s entry into the China market with interest. Their strategy has been very different from other entrants and they are now competitive with the domestic sector. This is an exciting time to be joining what is the world’s third largest wind turbine manufacturing group, and I am confident we will be announcing significant orders and increasing our market share shortly.”
It will be interesting to see if Suzlon is able to repeat their success in the domestic Indian market in China. It seems like Suzlon has made some of the right initial moves in that direction as it seeks to take the Chinese piece of the business to the next level.