Freshly business news, the world’s fifth largest India’s biggest wind power maker, Suzlon announced to combine development with an innovative partnership model with China.
It is selling its Chinese subsidiary Suzlon Energy Tianjin to China Power (Tianjin) New Energy Development Company for $60 million.
“We are re-aligning our strategy in the Chinese market with an agile, asset-light business model to achieve high growth and margins but with lower investments. We have decided to realign our business there, as reflected in this transaction,” Suzlon Group Chairman Tulsi Tanti said while announcing its decision, source said.
Further added, he said, “This is in line with our previously announced strategy to dispose of non-critical assets to reduce our long-term debt.”
The signing a binding term sheet for the sale of its whole subsidiary with the majority of its assets and liabilities for $60 million is an efforts of Suzlon Group to raise finance for clearing its debts.
Reports said, around Rs100 billion Debt-laden wind powers major has planned to raise $306 million to pay foreign currency convertible bonds early month by July 24 and $209 million by October 2012 to settle its repayment obligation, as per media information.
At present, India’s biggest wind maker Group has its position in 32 markets with installed capacity of 18,000 mw, including 7000 mw in domestic market.
However, the company has facilitates supply of 600-MW integrated Tianjin turbine generators in China and now it will in attempt to stronger its position in abroad nation by fulfilling all existing obligations.
“We believe this is a positive, strategic move for both companies; the Suzlon Group monetises a high-quality enterprise that we have built up since 2006, and China Power expands its base and capabilities in a highly competitive marketplace,” Tanti told reporters while asking about scope of its move.
After this move, meanwhile, China will surly maintain position in market as the world’s largest wind power market, big rival for leading other global companies.
