Siemens Gamesa to divest 90% of Indian wind business to TPG
In light of the rapidly growing wind sector in India, Siemens Gamesa has chosen to transfer majority ownership to TPG, a partner with financial strength and extensive experience in the Indian market.
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(Zamudio, Spain) and a group of investors led by (San Francisco, Calif., U.S.) intend to jointly address the Indian onshore wind market potential through a new company, in which TPG will be the majority shareholder.
Siemens Gamesa says it will divest 90% of its wind business in India and Sri Lanka, retaining a 10% stake in the transferred business. The agreement includes the manufacturing, installation and service of onshore wind turbines in these regions. As part of the agreement, Siemens Gamesa plans to transfer approximately 1,000 employees and two manufacturing plants in India into the new company. The wind turbine manufacturer will continue to support the business’s growth through a long-term technology licensing agreement. Financial details will not be disclosed and the transaction is subject to customary closing and regulatory approvals from the respective authorities.
India is a high-growth market for the wind energy sector, with an anticipated addition of approximately 57 gigawatts of capacity by 2032. To ensure the Indian market receives the dedicated attention it deserves, Siemens Gamesa has chosen to transfer majority ownership to TPG, a partner with financial strength, extensive experience in the Indian market and a strong commitment to green projects globally. This enables Siemens Gamesa to shift its strategic focus to other core markets.
“India is and remains an attractive market for wind energy, with significant growth potential,” says Vinod Philip, member of the board of Siemens Energy, responsible for Siemens Gamesa. “However, after thorough analysis, we have determined that our new partners led by TPG are the optimal owners to harness this potential. The new company will serve the Indian market more effectively while also offering a long-term perspective for employees and customers.”
According to Ankur Thadani, partner at TPG and head of climate, Asia, TPG is additionally partnering with Mavco and Prashant to further build on Siemens Gamesa’s success.
Siemens Gamesa currently holds a market share of ~30% in India’s wind turbine manufacturing. Supported by a robust manufacturing and supply chain base within the country, Siemens Gamesa has a cumulative installation base of almost 10 gigawatts and provides service to a fleet of more than 7 gigawatts under long-term agreements. The new company will continue to uphold the same high quality standards of customer service.
The Design Center activities of Siemens Gamesa’s technology function in India, which employs approximately 700 employees, plus another 500 employees, will not be subject of this transaction and will remain within the global wind power business of Siemens Energy.
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