Suzlon Energy’s recent acquisition of Renom Energy Services is poised to enhance its market presence and facilitate entry into new markets. It has acquired a 76% stake in Renom, the largest multi-brand renewable energy operations and maintenance (O&M) firm in India, from the Sanjay Ghodawat Group (SGG).
Renom will continue to function independently under its board management post-acquisition. The company’s portfolio encompasses 1,782 MW of wind, 148 MW of solar, and 572 MW of balance of plant (BoP) maintenance services across various customer segments. Morgan Stanley, which has rated Suzlon as ‘overweight’, views this acquisition as a strategic move into the multi-brand O&M sector, noting the deal’s attractive valuation at four times the price-to-sales ratio compared to listed peers.
According to JM Financial analysts, the company, with its existing fleet of 2.5 GW across 14 turbine models and over 850 skilled workers, is well-positioned to leverage Renom’s resources to tap into the 32 GW non-Suzlon O&M market. This market is expanding in line with India’s goal of achieving 100 GW of wind energy capacity by FY30. The acquisition is expected to open up new sites and capitalize on emerging re-powering opportunities.
Renom has experienced a fleet growth of 30% CAGR since FY20 and is projected to achieve an EBITDA of ₹55 crore in FY25, with potential to double this figure by FY27. The company, with an installed wind energy capacity of 20.8 GW and a 32% market share, will use its in-house O&M services to support its current fleet of approximately 15 GW and a growing order book. Renom will continue to focus on the non-Suzlon wind turbine service market, which spans around 32 GW.
Suzlon’s management is optimistic about the benefits of this acquisition. JP Chalasani, CEO of Suzlon Group, highlighted that Renom’s established market position, substantial fleet, and extensive experience with nearly 14 different turbine models will provide it with a competitive edge in the multi-brand O&M sector. The acquisition is expected to offer Suzlon a head start of 18-24 months in fleet expansion and create opportunities to cross-sell turbines and O&M services to non-Suzlon customers, thereby increasing revenue potential.
