Suzlon Energy, a key player in wind turbine manufacturing, is undergoing a significant transformation as it sets its sights on becoming a leader in renewable energy solutions. Following challenges with debt and market fluctuations, the company is now focused on growth through a strong 5 GW order book, cost reduction measures, innovation, and succession planning.
In October 2022, Suzlon faced a major loss with the passing of its founder, Tulsi Tanti, who was a pioneer in the wind energy sector. Despite this, the company successfully completed a Rs 1,200 crore equity rights issue and has seen substantial improvement in its operations since then. “Our growth is driven by two factors—cost reduction and being debt-free,” said JP Chalasani, CEO of Suzlon Group.
Girish Tanti, Co-Founder and Vice Chairman, noted, “Our cash flow from both the turbine business and Operations & Maintenance (O&M) services makes us self-sufficient, and we foresee no need for external funding.” The company’s efforts to reduce debt and improve efficiency have paid off, with shares rising 240% in the past year and a significant debt clearance of Rs 1,500 crore, marking Suzlon’s return to a positive net worth for the first time in a decade. Global investment firm BlackRock also recently acquired a stake in the company.
Focus on Cost Reduction and Operational Efficiency
Suzlon has made significant strides in cutting costs and minimizing debt since 2019. The company’s break-even point was reduced from 1,400 MW of wind turbine order execution in FY17 to 600 MW by FY20. By scaling up its O&M services business, Suzlon has created steady cash flow, insulating itself from industry fluctuations.
“Even if we do zero turbine business, our service arm ensures we can sustain ourselves long-term,” Chalasani stated. CRISIL Ratings recently upgraded Suzlon Energy to ‘A-‘ with a positive outlook, reflecting improvements in its WTG business margins, healthy cash flow from O&M, and a solid order book.
Expanding Capacity and Moving Up the Value Chain
Suzlon is also positioning itself to meet growing market demand with higher-capacity wind turbines. The company currently holds a significant portion of the Indian wind energy market, with 14.8 GW of installed capacity out of the country’s total 46.7 GW. “Tulsi Tanti’s vision ensured our R&D teams were untouched during cost-cutting phases. This foresight allowed us to introduce our 3.15 MW model at the right time,” said Chalasani.
India aims to install 500 GW of renewable energy capacity by 2030, with 140 GW from wind energy. Suzlon’s expansion strategy is aligned with these goals, with plans to double annual capacity additions in the coming years.
Beyond Wind: Solar and Storage Integration
As the renewable energy landscape evolves, Suzlon is diversifying beyond wind power, focusing on integrated energy solutions that include solar and energy storage. The company has entered into a partnership with the Sanjay Ghodawat Group, acquiring a 76% stake in Renom Energy Services Private Limited, a provider of O&M services for both wind and solar assets. This move enhances Suzlon’s position as a multi-brand service provider with a focus on hybrid energy solutions.
“Customers now seek integrated solutions, not just wind power. Solar and storage solutions are increasingly in demand, and while we don’t plan to manufacture these, we aim to integrate them into our offerings,” Tanti explained.
Building Resilience and Future Leadership
Established in 1995 by Tulsi Tanti, Suzlon’s growth was rapid, but the company faced financial difficulties in the following years. Now, the company is committed to building resilience through an agile business structure and strong leadership. Suzlon is reorganizing its operations into independent profit centers to drive sustainable growth across segments. “This approach will allow us to capture larger market shares with a focus on performance and excellence,” Tanti said.
The company is also hiring talent from diverse industries such as telecom and automotive to enhance its leadership pool, while working to increase female representation in projects and services. Chalasani, who returned as CEO in 2023 after previously holding the role from 2016 to 2020, emphasized the importance of developing local talent through ongoing training programs.
As for future leadership, Vinod Tanti, Chairman and Managing Director, alongside Girish Tanti, will continue to guide the company’s growth. “Our focus is on building Suzlon into a globally respected enterprise in renewable energy, and this will require expanding our team and integrating a broad range of professionals,” said Tanti. With a clear vision for the future and a diversified approach to renewable energy, Suzlon is poised to strengthen its leadership position in the market while contributing to India’s clean energy transition.
