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Military Orders The new series of novels from Martin Roth In the Middle Ages, military orders like the Templars defended Christians and fought for justice. Now, in Martin Roth's latest series of novels, a church has established a clandestine new military order, to fight for today's persecuted Christians.... |
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Suzlon - Will Debt Slow Its Breakneck Growth?
Suzlon is one of the world's fastest-growing wind power companies. But it has taken on a large amount of debt.
Indian wind turbine manufacturer Suzlon Energy was founded in 1995 and is listed on the National Stock Exchange of India. Thanks in particular to its strength in its home market it has grown rapidly to become the world’s fifth-largest wind turbine producer, and the biggest in Asia. In 2006 it acquired for $565 million the Belgian gearbox producer Hansen Transmissions, and in 2007 it paid $1.6 billion for the German wind power company REpower.
Latest Business Results (September 2007, First Half)
Suzlon saw strong growth, with sales up 77% from the September 2006 half to $1.4 billion. The after-tax profit of $105 million was up 25%. The growth was spread across many markets, and the company also achieved success in winning many new orders. It reported that at October 22, 2007 it held an order book worth $4.1 billion, with 60% of this in the US, and 11% each in India and Brazil.
Outlook
Suzlon has been expanding aggressively with the stated aim of becoming among the top three companies in all key global markets. In particular, its acquisition of Hansen Transmissions means that it has become one of the few integrated wind turbine makers, with in-house production of virtually all components, which helps it avoid production bottlenecks. It holds a 50% share of the fast-growing Indian market and is also gaining strength in China. Its acquisition of REpower means that it is also a force in Europe. However, such has been its expansion that debt has increased and profit margins have fallen.
January 12th, 2008