Suzlon to invest $1.4 bn, triple capacity

Suzlon to invest $1.4 bn, triple capacity

Ovais Subhani / Reuters

Singapore: India’s Suzlon Energy, the world’s fourth-largest wind turbine maker, said on Wednesday that it plans to invest about 1 billion euro ($1.4 billion, Rs5,600 crore) to nearly triple its production capacity by 2009.

The expansion plan would raise Suzlon’s turbine production capacity in India from 2,700 megawatt (MW) now to 5,700 MW by the close of fiscal March 2009, Tulsi Tanti, chairman of the firm, told Reuters in an interview.

By close of calendar year 2008 its recently acquired subsidiary, Germany’s REpower Systems, would have increased its capacity to 1,200 MW, from the exisiting 700 MW, he added.

“The total investment in this three-year plan is about 1 bln euro and most of this investment would be financed by debt," Tanti said in Singapore where he had traveled to attend the Forbes CEO Conference.

Tanti said the company also plans to raise its capacity to produce wind gearboxes, made by its unlisted Belgian subsidiary Hansen Transmissions, to 9,300 MW by 2009.

The order book stands at around $3.5 billion, up from $3.3 billion in July, with most of the orders from outside India, Tanti said.