Senvion was one of the biggest beneficiaries of the auction regime in the wind energy sector, with a formidable order book of 1,000 MW in India as on November, 2018.
Wind turbine manufacturer Senvion GmbH said on Tuesday that it has entered into a binding agreement with “a strategic investor” to sell its Indian unit Senvion India.
The financial details of the deal were not disclosed. The Indian unit currently has a 500 mega-watt (MW) manufacturing capacity and the company said that it is on track to complete the current orders as per the terms of the existing contract.
Senvion was one of the biggest beneficiaries of the auction regime in the wind energy sector, with a formidable order book of 1,000 MW in India as on November, 2018. However, the company filed for bankruptcy in Germany in April 2019 and is said to have lost a portion of Indian orders to other companies after that. Responding to FE’s queries, the company said that the challenging business environment of the wind power sector here is not the reason why it is leaving the Indian market.
“Senvion Gmbh has undergone a financial restructuring as per Laws of Germany, owing to its financial position,” the company said. “Post that, it was necessary to find a safe harbour for Senvion India, which was doing very well otherwise”.
Senvion was the German arm of Suzlon till FY14, before it was sold to a private equity consortium in FY15 at about Rs 7,000 crore. Owing to the stress in the wind energy sector, Suzlon had reported a loss of Rs 743 crore in Q3FY20. As FE recently reported, bondholders of Suzlon have approved a restructuring plan with a 99.9% vote in a meeting held in Singapore on Monday, within a week of lenders approving the company’s resolution plan, which implied around 60% haircut on a total exposure of Rs 12,785 crore to financial creditors.