MUMBAI: Suzlon Energy Ltd is embarking on its biggest expansion push in two decades, seeking to transform itself from a wind-turbine manufacturer into a full-service renewable energy company while avoiding the debt-heavy expansion.

Under a strategy it calls Suzlon 2.0, the company plans to expand beyond wind into solar and battery storage services, build a project-development business, and resume exports to overseas markets. Unlike its previous expansion cycle, however, the company says the new businesses will require limited capital and will largely be funded through internal accruals.

"We’ve chosen to play on our strengths," said Girish Tanti, vice chairman of Suzlon Group. "We believe with this model we really can deliver greater value to our stakeholders."

Growth engine

At the centre of the strategy is a renewable-energy development company, or DevCo, that Suzlon believes will help drive future growth. The unit will identify suitable sites for wind projects, secure land and grid connectivity, and sell ready-to-build sites to customers, reducing project-development timelines and costs.

“DevCo will be the magnet that will attract customers,” said Ajay Kapur, Suzlon Group's newly appointed chief executive officer.

Suzlon wants 60% of its wind turbine sales to come through the development business, according to Kapur, who joined the company from Ambuja Cement and will oversee execution of the new initiatives.

The company has already identified sites capable of supporting 25GW of wind-energy capacity, many of which could also accommodate solar projects, Tanti said. Suzlon has allocated ₹500 crore to the DevCo to secure land and transmission connectivity.

The broader strategy reflects Suzlon's ambition to become a one-stop provider of renewable-energy services. The company is positioning itself as an end-to-end partner for customers, from land identification and permitting to project construction, grid connectivity and long-term operations and maintenance. It also plans to enter battery-pack assembly for battery energy storage systems, or BESS.

“I'll be your one stop answer for any of your renewable needs - wind, solar, storage, integration - everything I will deliver,” Tanti said.

Suzlon is targeting an order book of 15GW across wind, solar and battery-storage projects by 2031, compared with a wind-only order book of 5.9GW today. It also aims to increase annual project execution to 10GW from 2.5GW currently and expand assets under maintenance contracts to 70GW gigawatts from about 18GW.

Capital discipline

The company is, however, steering clear of the most capital-intensive parts of the renewable-energy supply chain.

Suzlon does not plan to manufacture solar panels, which it believes is already a crowded market. Nor does it intend to manufacture battery cells. Instead, it is looking for partners to supply solar modules for its projects and is exploring partnerships for battery-pack assembly, where it is considering investing about ₹200 crore in a plant, Tanti said.

None of the new businesses will require major investments in manufacturing facilities, and the company is not pursuing large acquisitions, executives said.

That marks a sharp contrast with Suzlon's previous expansion cycle. In the mid-2000s, the company pursued aggressive acquisitions to expand into new markets and additional parts of the wind-turbine value chain, including gearbox manufacturing. When the wind industry subsequently weakened, Suzlon struggled under its debt burden and was forced to sell assets to preserve its core business.

After years of repairing its balance sheet and exiting non-core businesses and markets, the company now sees itself as being in a position to capitalize on renewed growth in wind energy.

The strategy also includes a return to exports. Suzlon announced in April that it would resume wind-turbine exports to Europe after nearly two decades. The company is also targeting markets including Australia, West Asia, North Africa, and South America, with a goal of securing 3GW of export orders by 2031.

The expansion comes as India's power demand is projected to rise by a third between 2025 and 2030 to 2,128 gigawatt-hours, while installed renewable-energy capacity is expected to double to 400GW, according to government estimates. Wind-energy capacity is expected to double to 100GW over the same period.

MUMBAI: Suzlon Energy Ltd is embarking on its biggest expansion push in two decades, seeking to transform itself from a wind-turbine manufacturer into a full-service renewable energy company while avoiding the debt-heavy expansion.

Under a strategy it calls Suzlon 2.0, the company plans to expand beyond wind into solar and battery storage services, build a project-development business, and resume exports to overseas markets. Unlike its previous expansion cycle, however, the company says the new businesses will require limited capital and will largely be funded through internal accruals.

"We’ve chosen to play on our strengths," said Girish Tanti, vice chairman of Suzlon Group. "We believe with this model we really can deliver greater value to our stakeholders."

Growth engine

At the centre of the strategy is a renewable-energy development company, or DevCo, that Suzlon believes will help drive future growth. The unit will identify suitable sites for wind projects, secure land and grid connectivity, and sell ready-to-build sites to customers, reducing project-development timelines and costs.

“DevCo will be the magnet that will attract customers,” said Ajay Kapur, Suzlon Group's newly appointed chief executive officer.

Suzlon wants 60% of its wind turbine sales to come through the development business, according to Kapur, who joined the company from Ambuja Cement and will oversee execution of the new initiatives.

The company has already identified sites capable of supporting 25GW of wind-energy capacity, many of which could also accommodate solar projects, Tanti said. Suzlon has allocated ₹500 crore to the DevCo to secure land and transmission connectivity.

The broader strategy reflects Suzlon's ambition to become a one-stop provider of renewable-energy services. The company is positioning itself as an end-to-end partner for customers, from land identification and permitting to project construction, grid connectivity and long-term operations and maintenance. It also plans to enter battery-pack assembly for battery energy storage systems, or BESS.

“I'll be your one stop answer for any of your renewable needs - wind, solar, storage, integration - everything I will deliver,” Tanti said.

Suzlon is targeting an order book of 15GW across wind, solar and battery-storage projects by 2031, compared with a wind-only order book of 5.9GW today. It also aims to increase annual project execution to 10GW from 2.5GW currently and expand assets under maintenance contracts to 70GW gigawatts from about 18GW.

Capital discipline

The company is, however, steering clear of the most capital-intensive parts of the renewable-energy supply chain.

Suzlon does not plan to manufacture solar panels, which it believes is already a crowded market. Nor does it intend to manufacture battery cells. Instead, it is looking for partners to supply solar modules for its projects and is exploring partnerships for battery-pack assembly, where it is considering investing about ₹200 crore in a plant, Tanti said.

None of the new businesses will require major investments in manufacturing facilities, and the company is not pursuing large acquisitions, executives said.

That marks a sharp contrast with Suzlon's previous expansion cycle. In the mid-2000s, the company pursued aggressive acquisitions to expand into new markets and additional parts of the wind-turbine value chain, including gearbox manufacturing. When the wind industry subsequently weakened, Suzlon struggled under its debt burden and was forced to sell assets to preserve its core business.

After years of repairing its balance sheet and exiting non-core businesses and markets, the company now sees itself as being in a position to capitalize on renewed growth in wind energy.

The strategy also includes a return to exports. Suzlon announced in April that it would resume wind-turbine exports to Europe after nearly two decades. The company is also targeting markets including Australia, West Asia, North Africa, and South America, with a goal of securing 3GW of export orders by 2031.

The expansion comes as India's power demand is projected to rise by a third between 2025 and 2030 to 2,128 gigawatt-hours, while installed renewable-energy capacity is expected to double to 400GW, according to government estimates. Wind-energy capacity is expected to double to 100GW over the same period.