Suzlon Energy Limited: history, ownership, mission, how it works & makes money

A Brief History of Suzlon Energy Limited

Suzlon Energy Limited, founded in 1995, has evolved into one of India's largest renewable energy companies. It specializes in wind energy generation and provides wind turbine technology. The company has a significant presence in various markets, including India, the United States, and Europe.

In its early years, Suzlon focused on manufacturing wind turbines and quickly became a leader in the Indian market. By 2006, the company had achieved a market capitalization of approximately ₹14,000 crore (around $2.84 billion at the time), making it one of the top renewable energy firms in the country.

In 2007, Suzlon made a strategic acquisition of the German wind turbine manufacturer, REpower Systems AG, for approximately €1 billion (around $1.4 billion). This acquisition enhanced its technological capabilities and expanded its international footprint.

By 2010, the company had a cumulative installed capacity of around 6,000 MW worldwide. Despite its rapid growth, Suzlon faced financial challenges in the following years due to high debt levels and market fluctuations.

In 2012, Suzlon's net loss widened to ₹1,033 crore (approximately $210 million), primarily due to the impact of high interest expenses and lower revenue from wind turbine sales. The company's debt at that time was reported at around ₹10,000 crore (about $2 billion).

In 2015, Suzlon initiated a comprehensive restructuring plan to stabilize its finances. This included divesting non-core assets and focusing on its core wind energy business. The company reported a net profit of ₹150 crore (approximately $22 million) in FY 2015-16, indicating a positive turnaround.

As of 2022, the company had an operational capacity of around 19,200 MW globally. In the financial year 2021-2022, Suzlon reported a revenue of approximately ₹3,640 crore (around $490 million), reflecting a growth of 21% year-over-year.

In recent years, Suzlon has ramped up its efforts in expanding its portfolio of renewable energy solutions. The company is actively participating in India's renewable energy auctions, with several projects under development. The Indian government’s push for renewable energy targets 450 GW of installed capacity by 2030, aligning with Suzlon’s strategic objectives.

As of October 2023, Suzlon's stock price has shown signs of recovery, trading at approximately ₹16 per share, reflecting a strong rebound from its historical lows. The company is expected to benefit from rising demand for renewable energy and continued government support for sustainable practices.

Overall, Suzlon Energy Limited remains a pivotal player in the renewable energy landscape in India and beyond, with a commitment to sustainability and innovation driving its future growth.

A Who Owns Suzlon Energy Limited

Suzlon Energy Limited, a prominent player in the renewable energy sector, particularly in wind energy, has a diverse shareholder structure. As of the latest available data, the ownership of Suzlon Energy is as follows:

As per the data available from the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), Suzlon has seen fluctuations in its shareholding pattern over recent years. The significant portion held by retail investors signals strong public interest in the company.

Among the key promoters, the founder, Tulsi Tanti, has been instrumental in driving the company's vision and strategy, holding a notable stake personally.

In the first quarter of FY2023, Suzlon Energy reported a total revenue of approximately ₹1,200 crores, marking a growth of 15% year-on-year. The current market capitalization of the company is around ₹6,500 crores.

Recent institutional investments include significant stakes acquired by mutual funds and insurance companies, reflecting a growing confidence in the company's recovery trajectory post-restructuring.

Additionally, in December 2022, Suzlon announced a strategic partnership with global players for enhancing its technology capabilities, which may influence future share ownership dynamics.

The share price of Suzlon Energy Limited as of October 2023 is approximately ₹10.50 per share, showcasing a year-to-date increase of 30%.

This data indicates a continuous interest from various types of investors, signaling a robust capital structure amidst evolving market conditions focused on sustainable energy practices.

Suzlon Energy Limited Mission Statement

Suzlon Energy Limited, a global leader in renewable energy solutions, focuses on delivering sustainable energy solutions through innovative technology in the wind power sector. The company's mission statement emphasizes its commitment to being a key player in the global energy transition and contributing to a cleaner and greener planet.

As of FY 2022-23, Suzlon Energy reported a total income of ₹8,712 crores (approximately $1.06 billion) with a net profit of ₹460 crores (approximately $56 million). The company aims to maintain a strong growth trajectory and expand its global footprint in the renewable energy market.

In alignment with its mission, Suzlon Energy is focused on the following key areas:

• Providing innovative and cost-effective wind energy solutions.
• Enhancing technological capabilities for improved performance and efficiency.
• Fostering long-term relationships with clients and stakeholders to promote sustainable development.
• Commitment to corporate social responsibility by supporting community development initiatives.

Suzlon's commitment to sustainability is evident in its operational metrics. The company has a cumulative installed capacity of over 19.7 GW as of October 2023, making it one of the largest wind power developers in India. The company has a strong presence in key international markets, including the United States and Europe.

The company aims to enhance its research and development capabilities, investing approximately ₹300 crores in R&D for the financial year 2023-24 to explore new technologies in wind turbines and hybrid energy solutions. This investment is part of Suzlon's strategy to maintain its leadership position in renewable energy amidst growing competition.

Suzlon Energy also focuses on sustainability by addressing climate change through its operations. The company has set a target to reduce its carbon footprint by 30% by 2025, enhancing its commitment to environmental stewardship. This proactive approach not only aligns with global sustainability goals but also appeals to environmentally conscious investors and stakeholders.

How Suzlon Energy Limited Works

Suzlon Energy Limited, established in 1995, is one of India's largest renewable energy companies. It operates primarily in the wind energy sector, providing end-to-end energy solutions. The company specializes in manufacturing wind turbine generators, and its operations span across the entire value chain, including development, operation, and maintenance.

The company has developed a strong presence not just in India but also globally, with operations in over 18 countries. As of the latest reports, Suzlon has installed more than 19,000 MW of wind power capacity, making it a key player in the renewable energy sector.

Business Segments

• Manufacturing: Suzlon manufactures wind turbine generators and associated components. Their manufacturing facilities are strategically located in India, the USA, and Europe, allowing them to cater to diverse markets efficiently.
• Project Development: The company engages in project development from the initial stage of site identification to the final commissioning of wind farms.
• Operation and Maintenance (O&M): Suzlon offers comprehensive O&M services, ensuring optimal performance and longevity of wind power projects.

Financial Overview

For the fiscal year ending March 2023, Suzlon reported a revenue of ₹3,355 crore (approximately USD 406 million), reflecting a growth of 22.4% compared to the previous year. The company’s net profit for the same period stood at ₹158 crore (approximately USD 19 million).

Stock Performance

As of October 2023, Suzlon Energy's stock is listed on the National Stock Exchange of India (NSE: SUZLON) and has seen strong fluctuations throughout the year. The stock price reached a high of ₹24.80 and a low of ₹8.30.

Market Trends and Strategies

Suzlon is actively engaged in addressing the growing demand for renewable energy sources. The Indian government’s initiative for achieving 500 GW of non-fossil fuel capacity by 2030 creates a favorable environment for Suzlon’s growth. The company is focusing on enhancing its technological capabilities, including investments in hybrid energy solutions that combine wind power with solar energy.

Challenges

Despite its growth trajectory, Suzlon faces several challenges. Competition from other renewable energy companies and fluctuating raw material costs have impacted profit margins. Additionally, Suzlon has had to navigate financial restructuring efforts to manage its debt, which was reported at approximately ₹3,000 crore (around USD 360 million) as of March 2023.

Conclusion of Operations

In conclusion, Suzlon Energy Limited operates a comprehensive model in the renewable energy sector, focusing on wind energy. It continues to evolve and adapt to market demands and challenges while solidifying its position as a leader in sustainable energy solutions.

How Suzlon Energy Limited Makes Money

Suzlon Energy Limited primarily operates in the renewable energy sector, focusing on wind energy. The company generates revenue through various segments that include manufacturing and selling wind turbine generators, providing related services, and engaging in project development.

In the financial year 2022-2023, Suzlon reported a revenue of ₹**2,559 crores** (approximately $310 million), reflecting a year-on-year growth of **61%**. This surge was attributed mainly to the increased demand for renewable energy solutions amid global climate initiatives.

Suzlon's core revenue streams consist of:

• Wind turbine sales
• Operation and Maintenance (O&M) services
• Project development and consultancy

The company has a robust manufacturing capability with a capacity of **6,000 MW** for wind turbine generators. For FY 2023, Suzlon reported selling **1,102 MW** of wind capacity, translating to a market share of approximately **12%** in India’s wind sector.

The demand for wind energy has been driven by several government initiatives promoting renewable resources. For instance, the Indian government has set a target to achieve **175 GW** of renewable energy capacity by 2022, which has significantly benefitted Suzlon’s business development.

Furthermore, the company's strategy includes expanding its international presence, particularly in markets like Europe and the Americas. In FY 2023, **30%** of the orders were generated from international markets, showing an increase in global outreach.

Suzlon has also been focusing on enhancing its technological capabilities. The recent launch of the Suzlon 3.6 MW turbine is expected to improve efficiency and reduce the cost of energy production, positioning the company as a more competitive player in the industry.

In terms of financial stability, Suzlon’s EBITDA for FY 2022-23 stood at ₹**423 crores**, resulting in an EBITDA margin of **16.5%**. The company is also enhancing its capital structure with a focus on reducing debt, which was reported at ₹**1,500 crores** as of March 2023.

By leveraging the growing trend of sustainable energy, Suzlon Energy Limited is poised for further growth in its revenue generation, positioning itself strategically within the renewable energy landscape.