According to reports, Suzlon Energy plans to ramp up its market share this year, helped by growth in Europe, emerging markets such as India, Brazil and South Africa, and through orders for offshore turbines, its chairman said on Wednesday. Suzlon, the No. 5 global wind turbine maker, intends to grow market share to 9 or 10% from 7% last year, Tulsi Tanti, Suzlon Energy chairman and managing director, told Reuters in an interview.
“India, China, Brazil — they need electrons — they need energy,” Tanti said.
While the US market is less promising for the firm because of a sluggish economy and cheap natural gas, the European market will be driven by government targets for renewable energy, he said.
“We are not concerned about Europe because for the wind industry, there is a regulatory target. Now governments’ focus is also on renewables,” Tanti said.
Suzlon’s biggest markets by volume include India, China and Brazil, and the company is the market leader in India, Brazil and Australia.
“The industry will grow by 15% and our order book will grow more than 15% globally. If we are growing faster than the market, we will add about 2% market share,” said Tanti.
The global wind turbine industry is saddled with about 30% overcapacity, putting pressure on margins, Tanti said, but added he was confident of delivering its 8% EBIT margin target. Tanti expects industry capacity to be fully utilised in about three years. Suzlon is considering setting up a turbine making plant in South Africa, which has recently opened up its wind energy market. A decision will be taken next year, once there is more clarity on the requirements and investments, Tanti said