Once a subsidiary of Indian wind energy giant Suzlon Energy, Germany-based Senvion is set to enter the Indian market to compete with its former parent.
According to media reports, Senvion SA has agreed to acquire wind turbine manufacturer Kenersys India. Senvion will acquire Kenersys’ production facilities as well as service operations in a deal whose value remains undisclosed.
Senvion will take over a turbine manufacturing unit of Kenersys located in Maharashtra that has an annual production capacity of 250 MW. It will also take control of 220 MW of operational wind energy assets of the Indian company.
Kenersys has been struggling over the last few years to compete with giants like Gamesa, Suzlon, and Inox Wind. According to the company website, the last new product launch took place in 2014.
Senvion, earlier named REpower, concentrates on the global offshore wind energy market but is now looking to expand in the Indian market, which has absolutely no operational offshore wind energy capacity.
Suzlon Energy had acquired REpower in January 2008, just before the global economic crisis. The acquisition pushed Suzlon Energy into a spiral of financial debt from which it has only just started to recover. In January 2015, Suzlon announced that it would sell Senvion to US-based equity fund Centerbridge Partners for €1 billion. Suzlon shareholders approved the sale in March 2015.
In February 2016, Senvion announced plans to enter the Indian market, stating that it will offer “high-quality wind energy solutions for Indian wind sites.”
Senvion’s entry looks to be part of the sell-off deal with Suzlon Energy. The Indian wind turbine manufacturer reportedly secured rights to use some of Senvion’s offshore wind energy technology. Senvion’s acquisition of Kenersys will now put the former in director competition with Suzlon Energy in the onshore wind energy domain.
Image © Senvion GmbH 2014
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