The board of Suzlon Energy Ltd has approved the company’s proposal to sell its 75 per cent equity holding in subsidiary company Suzlon Generators Ltd.
In a stock exchange filing, Suzlon Energy said that the company’s entire equity holding in Suzlon Generators Ltd (SGL) is proposed to be sold to Voith Turbo Pvt Ltd or its associates, subject to customary due diligence, necessary approvals and execution of definitive documents.
Suzlon Energy Ltd holds 75 per cent equity capital in Suzlon Generators Ltd, with the remaining 25 per cent held by Austria-based Elin Motoren GmbH, a Voith Group company.
Commencing its operations in around 2008, SGL is engaged in manufacture of hi-tech generators used in wind turbine generators. SGL has been a supplier of equipment to Suzlon Energy Ltd. SGL’s manufacturing facility is located on an 8-acre expanse at Chakan in Pune, Maharashtra.
Suzlon Energy expects the transaction to close by Q2 of FY22, which is by September 30, 2021.
In FY21, Suzlon Generators Ltd reported a sales turnover of Rs.53.27 crore, while its book network, as of March 31, 2021, was Rs.30.63 crore.
As of March 31, 2021, Suzlon Energy had a total of 47 entities comprising subsidiaries, joint ventures and associate companies. Of these, 26 have been incorporated overseas.
FY21 Performance
Meanwhile, Suzlon Energy Ltd also announced its financial results for FY21. The company posted annual revenues of Rs.3,294.65 crore and a net loss of Rs.701.87 crore (before exceptional items) for the year.
The company closed the year with an order backlog of 817 mw that will be serviced this year, FY22.
Commenting on the company’s performance, Ashwani Kumar, CEO, Suzlon Group said, “For Suzlon, this was the first year of restarting our operations post debt restructuring. While our installations remained low, our strategic imperatives for the year were restarting our manufacturing facilities, ensuring continuation of our OMS operations without interruptions and fulfilling the obligations of our debt restructuring. However, exponential increase in commodity prices like those of steel has impacted our profitability significantly in India.”
“Our service business teams have done exceptionally well in keeping all our sites operational to generate uninterrupted power throughout the lockdown period, safe-guarding our customer’s assets and revenues, while providing an essential service to the nation. We closed the year with a healthy order-book of over 817 MW which we aim to service this year.”
US subsidiary files for liquidation
Suzlon Energy also informed that Suzlon Wind Energy Corporation, USA (SWECO), a step down subsidiary of the Suzlon Energy Ltd, has filed for voluntary liquidation in the United States Bankruptcy Court of the Northern District of Illinois, Eastern Division under Chapter 7 of the United States Bankruptcy Code and Federal Rules of Bankruptcy Procedure of the USA on June 29, 2021. The board of SWECO took this decision in wake of continued financial stress sustained by its operations during the pandemic, Suzlon Energy said.
Featured photograph (source: Synefra) shows Suzlon Generators’ manufacturing facility located at Chakan, Pune.
