BackSuzlon announces merger of three subsidiaries with itself
The board also approved the de-merger of the tubular tower manufacturing division from its Suzlon Structures Ltd and merging it with Suzlon Energy
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Mumbai: Wind turbine maker Suzlon Energy Ltd (SEL) on Wednesday said it will merge its subsidiaries SE Blades Ltd, SE Electricals Ltd and Suzlon Wind International Ltd with itself in order to optimize working capital and reduce costs.
The company said its board on Wednesday also approved the de-merger of the company’s tubular tower manufacturing division from its subsidiary Suzlon Structures Ltd and merging it with the flagship Suzlon Energy. Tubular structure is a component on which wind turbines are erected.
A company spokeswoman said such a restructuring would not have an impact on overhead costs or result in reduction of staff. She declined to comment on how much cost savings were anticipated from the exercise.
“Such consolidation of the above referred manufacturing companies will result in achieving business and administrative synergies for the group...," Suzlon Energy said in a filing, adding that the transactions do not involve a cash consideration. “The consolidation will result in financial, managerial, and technical resources being pooled in together with SEL, and will lead to increased competitive strength, cost reduction and efficiencies, productivity gains and logistic advantages to the business operations," the filing said.
Shares of Suzlon fell 1.03% to ₹ 14.36 on the BSE on Wednesday.
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