Mumbai: Spain’s Gamesa will invest Rs500 crore ($110 million) to set up two turbine parts making facilities in India, the wind turbine maker said, as it tries to offset weakness in its European and US markets.
Gamesa has shifted much of its production to countries such as China and India to offset a drop in demand in higher margin markets.
“We are making long-term commitments in India...we will gradually set up other offices in key economic areas of India in order to offer Indian customers the best service support for our products,” Gamesa chairman and chief executive officer Jorge Calvet said in a statement.
Calvet denied reports the company was planning to buy a stake in India’s Suzlon Energy, the world’s third-biggest wind turbine maker, and said it does not plan to form a partnership with it either.
Local media had earlier reported that Gamesa could buy a stake in Suzlon.
The Indian company has denied any stake sale plans.
Gamesa’s Indian operations, launched in February 2010, have touched a turnover of Rs1,000 crore in their first year, it said.
The company, which competes with Denmark’s Vestas, plans to double its current Indian manufacturing capacity to 1,000 megawatts by September and to sell 500-800 megawatt turbines per annum in the country over the next couple of years, Calvet said.