Wind turbine maker Suzlon Energy Ltd on Tuesday said that it had completed installing and commissioning 350 MW of wind energy in Brazil over a period of 16 months ended November 2014 with bulk of 309 MW being added in calendar year 2014.
This combined capacity includes projects located in the high wind states of Rio Grande do Norte and Ceara in Brazil.
As a rule of thumb, a wind turbine costs Rs.6 crore to Rs.6.5 crore per MW which would make this contract worth Rs.2,275 crore. Typically, the company gets remaining 40% of the agreed amount after the work is completed. This would mean Suzlon Energy will get nearly Rs.1,000 crore.
Suzlon has total debt of Rs.16,500 crore.
“We remain focused on high growth and emerging markets and Brazil is a key geography of our growth strategy. Suzlon is committed to contribute to Brazil’s energy basket by reducing its carbon footprint and bridging the country’s power needs,” said Tulsi R. Tanti, chairman, Suzlon Group.
Suzlon entered the Brazilian market in 2008 and has since created a cumulative installed capacity of approximately 750 MW. The earlier projects of approximately 400 MW are also located in the wind resource rich state of Ceara.
On 14 February, Suzlon Energy said on Saturday that Dilip Shanghvi Family and Associates (DSA) will invest Rs.1,800 crore in it.
DSA will pick up 23% stake in the company and make an open offer to the shareholders of Suzlon.
DSA will buy as many as 1,576.4 million shares of Suzlon at Rs.18 apiece for a total of Rs.2,837.59 crore, the BSE notice said. Existing promoters, Tulsi Tanti and family, will continue to hold 24% in the company and retain management control.
Management control remains with the Tanti family by virtue of pooling arrangement for voting, the wind turbine maker said in a statement.
Shanghvi is India’s second-richest man with a net worth of $19.6 billion, according to the Bloomberg Billionaires Index.
Last month, the Suzlon group had signed a binding agreement with Centerbridge Partners Lp to sell a 100% stake in Senvion SE, a subsidiary of the Suzlon group. The all-cash deal was valued at €1 billion (around Rs.7,100 crore today).