...SUZLON ENERGY: FINANCING PROBLEM Q1) Discuss the various financing options available for a company to raise the required funds. Basically, business firms need finance for two purposes: 1. To fund long-term decisions and 2. To meet working capital requirements Long-term financing sources that a company employs: 1. Retained earnings 2. Equity capital 3. Preference capital 4. Debenture capital 5. Term loans/term finance Short-term financing options adopted by a company are: 1. Short-term loans 2. Trade credit 3. Commercial papers Q2) Analyse the business of Suzlon up to the FY2007-2008 since its inception. Established in 1995, started as Textile Company and ventured into wind turbine due to energy need for textile business; Founded by Tanti; started the buss with his own money of IRN135million Beginning with a wind farm project he set forth to acquire the basic technology and varied expertise to set up Suzlon Energy Limited - India’s first home-grown wind technology company. 2000-market leader in india with 50%market share; Suzlon is a wind turbine company operating in India since 1995 It is world 5th largest wind turbine manufacturer. Global market share of 0.5% in 2008 it is market leader in Inida and with 50% market share in 2000. 100% growth in 2007 and 108% in 2006. Inception of Suzlon and some problems in the beginning • The concept of Suzlon came into being to satisfy the electricity needs of a textile co. owned by Tanti • Tanti then set it...
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...Executive summary Suzlon, the Indian-owned Wind Energy company, has made its mark in the Indian and Global Wind Energy markets since its inception in 1995. By 2011, the company was the Asian market leader, having completed projects across 32 countries around the globe. Tulsi Tanti, originally a textile manufacturer founded Suzlon in 1995 to meet the energy demands of his family business textile operations. In those days, India was marred by expensive and unpredictable power grids which lead to rising power costs and frequent electricity outages. In 1994, the Government of India announced incentives for those investing in Wind power. As a part of the scheme the Ministry of non-conventional Energy resources offered capital subsidies and waivers from excise, income and import taxes for renewable energy projects. Tanti saw a promising opportunity and raised $0.6 million for his new wind energy venture. He began by securing selling rights from “SudWind”, the German turbine manufacturer, in India for their turbines. However, in an unexpected turn of events the German company went bankrupt. Determined not to lose this opportunity, Mr Tanti purchased the Worldwide rights to sell SudWind turbines – hiring the manufacturer’s R&D centre in Germany. Their first project was a ten turbines wind farm for India Power Corporation Limited(IPCL), a petrochemicals company. Suzlon’s successful completion of the project in a record three months helped it build its name. Soon, other projects...
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...Suzlon Case Analysis Qn. What are the various Risks that Suzlon was exposed to? What they could have done differently to handle the situation? Ans. The various risk Suzlon was exposed to are: 1. Compliance Risk- In 2012 government rolled back some of the incentives casting a shadow on growth and aggravated the challenges for Suzlon that had already been struggling due to slow down in overseas market. 2. Merger and Acquisition Risk- When Suzlon acquired Repower at a price much higher than what was offered by Areva. There was a high investment risk, as it may or may not turn into fruition. 3. Financial leverage Risk- The acquisition was to be financed through debt, this increased the financial liabilities leading to the increase of financial leverage. 4. Foreign exchange risk- As the bonds issued were US dollar dominated, this increased the foreign exchange risk as dollar rate in future will define the payment terms. 5. Economic Risk- The global economic crisis in 2008 led to a tight credit situation, this hurt Suzlon because it purchased Repower at high valuations. 6. Competitors Risk- The competition from companies such as Enercon. ReGen, Gamesa and Vestas led to the decline of its market share in India. 7. Regulatory Risk- The CDR standing forum was a representative general body. It laid down policies and guidelines to be followed by the empowered group and CDR cell for debt restructuring. These regulators control the mechanism of CDR and any changes in provisions...
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...Suzlon | | Vision “Be a Quality Leader through Technology and Sustainable Stakeholder Centric Management”Suzlon’s vision is to be a technologically leader, to be among top three wind energy companies in the world by leveraging technological leadership and commercial acumen to exceed customer expectations and be the most respectable brand which grows fast and is most profitable company employing the best team in the sector. The company adopted innovation at the very core of its thinking and ethos. This approach has resulted in several firsts’ starting with a revolutionary ‘End-to-End solution package ‘, creating demand through providing customers with comprehensive solution starting from creating demand though project and infrastructure development, and converting windy sites into kilowatt-hours and profitable businesses ventures for Suzlon’s customers. Suzlon combined with another visionary step – full backward integration supply chain. Suzlon by bringing into play economies of scale, control and assurance. Vision to Reality- RoadmapThe roadmap for quality and HSE is such as to drive quality management and HSE functions from quality control to benchmarking to arrive final destination that is reliability and stakeholder delight by working across the value chain functions with the help of the strategy to reality approach.A structured framework has been followed in defining the Global QMO Strategies. Such a guided approach is further driven by our quality vision: Mission Our...
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...Roll No.32 Table of Contents Vision 4 Philosophy 4 Mission 4 Suzlon Positioning 5 Organization Structure of Suzlon Group 6 Organizational Structure 7 Business Strategy 9 Porter’s Five Competitive Forces 11 SWOT Analysis 21 Strengths 21 Weaknesses 22 Opportunities 23 Threats 24 Tows Matrix 26 Suzlon’s low cost strategy 27 Competitive Strengths 30 Product-Market Characteristics 34 End To End Solutions Models 35 Corporate Social Responsibility 37 Summary and Recommendation 39 Conclusions: 40 About the Company Suzlon Energy is a global wind power company based in India. Suzlon is a market leader in Renewable Energy Resources segment in India. It specializes in providing total solutions in Wind Power Generation with cohesive integration of consultancy, design, manufacturing, installation, operation and maintenance services. Currently, Suzlon is ranked as fifth leading wind turbine manufacturer in the world in terms of cumulative installed capacity, at the end of 2011. Suzlon delivers end-to-end wind power solutions from assembly, installation to commissioning. The company manufactures blades, generators, panels, and towers in-house and state-of-the-art large or offshore turbines through its subsidiary REpower. The company is integrated downstream and delivers turnkey projects through its project management and installation consultancy, and operations & maintenance services. Suzlon is a multinational company with offices, R&D and technology centers,...
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...Suzlon Case Study University’s Name: Submitted by Names: Tutor Date Introduction The wind energy sector has attained a high-level attention and acceptability in the contemporary renewable global market compared to other sources. The year 2014 marked the highest growth rate by 11% with 50GW annual installation for the first time. It was a record high of 99.5 billion in the same year rising from the previous 80.3 billion in 2013. India to be specific ranks the fourth globally in wind energy uptake with an installed capacity of 6018 MW. The wind energy sector is expected to create more jobs, fuel economic activity and extensively reduce CO2 emissions on earth. Wind power is now becoming the best option for power companies in adding capacity to a grid since it is attributed to low costs (Global Wind Energy Outlook, 2014, pp. 12). According to the information, the sector reflects an amiable growth in the coming years however, the energy industry in its entirety has many challenges since parties come up with new and costs effective forms of energy. The research paper begins by holistically analyzing the major challenges and opportunities facing the global wind energy industry and their strategic implications, using porter’s five forces model. The porter’s five forces model serves to analyze the competitive forces in the industry to identify opportunities and threats. The analysis covers five facets namely the risk of entry by new competitors, intensity of rivalry among...
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...[pic] PGSM ASSIGNMENT COVER |SECTION A: PERSONAL PARTICULARS (PLEASE USE BLOCK LETTERS) | Programme : INTERNATIONAL EXECUTIVE MBA (INTERNATIONAL BUSINESS) Name (as per IC/Passport): JASMIN PATRICIA TIEW ABDULLAH Student ID: MAL 13026 Subject Code: FIN 600 Subject Title: CORPORATE FINANCIAL MANAGEMENT Name of Lecturer: MR. NGU Assignment Submission Date: 27TH APRIL 2013 Name of Group Members (if applicable) i) __________________________________________________ ii)_______________________________________ Explanation for Late Submission (if Applicable) _____________________________________________________________________________________________ (Accepted (Rejected Declaration: I declare that a) No part of this assignment has been copied from any other person’s work except where due acknowledgement is made in the text and; b) No part of this assignment had been written for me by any other person except where such collaboration has been authorized by lecturer concerned. Signature: ______________________________________ Date: 27TH APRIL 2013 |SECTION B: EXAM COORDINATOR USE ONLY…………………………… | |The Examiner’s Remark: ...
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...eco-friendly companies in India who are leading by example by contributing their bit to the cause of sustainability & a greener environment. • Wipro Technologies • Suzlon Energy • ITC Ltd. • HCL Technologies • Tata Consultancy Services • Oil and Natural Gas Company • Idea Cellular • IndusInd Bank • Tamil Nadu Newsprint and Papers Limited • Tata Metaliks Limited (TML) Wipro was ranked number 1 in the 18th edition of the ‘Greenpeace’s Guide to Greener Electronics’ scoring high points (7.1) for: •reducing greenhouse gas emissions, •increasing its use of renewable energy. Despite the global financial crisis, Wipro held fast to its commitment towards energy efficiency and was praised for launching energy star compliant products in the market. Not only this, but it has also introduced an effective take-back policy on the collection and recycling of post-consumer e-waste. Suzlon Energy One Earth Headquarters of Suzlon Energy The Suzlon One Earth campus is a unique corporate headquarter spread over 10 acres of land in Hadapsar, Pune, India. It’s corporate building is the most energy-efficient building ever built in India. What is Suzlon One Earth? The campus is aptly named One Earth as Suzlon’s business believes in caring for the Earth. Tulsi Tanti, the visionary behind Suzlon, convinced the world that wind is the energy of the future and built his factory in Pondicherry to run entirely on wind power. It further highlights that: ...
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...such kind of problem, then another problem which is a very important economic concept called opportunity cost or alternative cost raised in front of the firm which cost, the firm has to bear. So the firm which is able to use this limited resources through sustainability and greening of the economy to turn limitation into the opportunities can be considered as a sustainable champion. The purpose of this paper is to establish the clear understanding of the economic problem of the scarcity of resources which I shall be discussing. 1. The Economic problem of limited resources and unlimited wants and its relationship with the opportunity cost. 2. Production Possibility 3. Sustainability, greening of the economy and the firm – Suzlon Succeeded in achieving the sustainability Limited Resources and Unlimited Wants The two factors – limited resources and unlimited wants define scarcity, which is taken as a condition in which the available resources are inadequate to satisfy people’s wants. Scarcity is a universal concept which relates to each individual, each economy and each government, etc. There are mainly four categories of resources which can be used – Labour, Land, Capital and Entrepreneurship. These limited resources are used together and ultimately...
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...more aggregate proceedings. Case of Suzlon Energy Suzlon is a vertically integrated wind power company. Suzlon makes and installs windmills. The company manufactures blades, generators, panels, and towers in-house and large or offshore turbines through its subsidiary Senvion (German wind Turbine Company). Suzlon Energy Limited was ranked as the world’s fifth largest wind turbine supplier, in terms of cumulative installed capacity and market share, at the end of 2013. In India, Suzlon has been the market leader for 15 consecutive years, with more than 8,600 MW of installed capacity, and progressive addition of new capacity every month. Suzlon Energy Ltd fell into bad times during the global economic crisis and had been struggling ever since. There were many reasons for its fall from grace. As demand raced ahead of supply in the days before the financial crisis, Suzlon had started building wind blades without waiting for orders. However, inventory piled up as orders shrank. The Wall Street Journal reported in August 2008 that Suzlon had recalled 1,251 blades fitted on its top-of-the-line turbines sold to Edison Mission Energy, a US-based wind power firm. Edison told the US Securities and Exchange Commission that the 144ft blades had begun to split at its three sites. Suzlon spent $25 million to change the blades that had developed cracks—not a massive amount, but a setback given the context. In the biggest convertible FCCB default in India, Suzlon failed to pay interest on $209 million...
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...An Analysis of Opportunities in the Wind Power Value Chain EA I Energy Alternatives India Foreword These are exciting times for Indian renewable energy, and especially so for solar and wind energy. Investments in renewable energy industry in India have increased from a meager $94.58 million in 2001 to $3.7 billion in 2008, and about $7.2 billion by 2009 - at a CAGR of 72%. A significant part of these investments were in wind energy. For the past few years China has been doubling its cumulative wind energy installed capacity, and by end of 2009, the country had a cumulative installed capacity of 25.1 GW, from 12.1 GW for end-2008 - over 100% growth! During the same year, India added a modest 1.27 GW, raising its total installed capacity from 9.65 GW to 10.92 GW. The comparative data for India and China show the potential the Indian wind energy sector has. With the government of India keen on promoting renewables with attractive incentives, the wind energy sector is expected to created thousands of jobs and a number of business opportunities for the private sector. EAI is glad to be part of the The Renewable Energy Chennai 2010 Conference which has a focus on the exciting wind energy sector. We hope that this white paper on the opportunities present in the wind energy sector will assist entrepreneurs and businesses in their efforts at exploring this sector. EAI thanks Exhibitions India/Comnet Conferences for providing the opportunity to present this white paper as...
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...ETM / IEL Working Paper Disruptive Innovation in Emerging Markets: Strategies Used in India and China Ruan Y., Hang C.C., Subramanian A.M. No. 01/12 Division of Engineering & Technology Management (D-ETM) Institute of Engineering Leadership (IEL) Faculty of Engineering 1 Disruptive Innovation in Emerging Markets: Strategies Used in India and China Ruan Y., Hang C.C., Annapoornima M.S. Abstract The appropriate type of innovation which can meet the needs of the mass population in the bottom of pyramid (BOP) has not been studied much in the literature. Based on the theory of disruptive innovation, we offer 11 cases from India and China – the two biggest emerging markets to show that disruptive innovation could be an appropriate, feasible, and powerful innovation force to the companies and the economies involved. We also examined the R&D strategies used in these cases based on the framework proposed by Yu & Hang (2011) and found that 3 out of the 4 strategies commonly used in the cases from developed markets were also applied in the cases from emerging markets. In addition, we have identified 3 unique strategies which emerged from the cases from India and China, namely frugal engineering, modularization, and drastic manufacturing cost reduction. Based on the frequency of the usage of these strategies, we drew practical implications for local companies and multinational companies. Our study also provides critical insights to policy makers...
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...globalization process. Here are the top 10 acquisitions made by Indian companies worldwide: |Acquirer |Target Company |Country targeted |Deal value ($ |Industry | | | | |ml) | | |Tata Steel |Corus Group plc |UK |12,000 |Steel | |Hindalco |Novelis |Canada |5,982 |Steel | |Videocon |Daewoo Electronics Corp. |Korea |729 |Electronics | |Dr. Reddy’s Labs |Betapharm |Germany |597 |Pharmaceutical | |Suzlon Energy |Hansen Group |Belgium |565 |Energy | |HPCL...
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...The Top 100 Powerful CEO’s in India Name | Company/Group | Rank | | | 2010 | 2009 | Ratan Tata | Tata Sons | 1 | 1 | Mukesh Ambani | Reliance Industries | 2 | 2 | NR Narayana Murthy | Infosys Technologies | 3 | 3 | Anil Ambani | Reliance ADAG | 4 | 4 | Sunil Mittal | Bharti Group | 5 | 9 | Azim Hasham Premji | Wipro | 6 | 10 | Kumar Mangalam Birla | AV Birla Group | 7 | 11 | Rahul Bajaj | Bajaj Auto | 8 | 19 | Anand G Mahindra | Mahindra & Mahindra | 9 | 13 | Vijay Mallya | UB Group | 10 | 6 | S Gopalakrishnan | Infosys Technologies | 11 | 12 | OP Bhatt | State Bank of India | 12 | 17 | Chanda Kochhar | ICICI bank | 13 | 14 | Vinita Bali | Britannia | 14 | NA | Venu Srinivasan | TVS Motors | 15 | 26 | Shiv Nadar | HCL Technologies | 16 | 25 | Uday Kotak | Kotak Mahindra | 17 | 35 | Harsh Goenka | RPG | 18 | 42 | A B Godrej | Godrej Group | 19 | 27 | Shashikant N Ruia | Essar Group | 20 | 38 | AM Naik | L&T | 21 | 15 | Ravikant N Ruia | Essar Group | 22 | NA | T S Vijayan | LIC | 23 | 33 | Aditya Puri | HDFC Bank | 24 | 22 | Kishore Biyani | Future Group | 25 | 24 | Shikha Sharma | Axis Bank | 26 | 52 | Subhash Chandra | Zee Telefilms | 27 | 40 | K P Singh | DLF Group | 28 | 39 | Vineet Nayyar | HCL Technologies | 29 | 39 | Rajiv Bajaj | Bajaj Auto | 30 | 18 | Manoj Kohli | Bharti Airtel | 31 | NA | K R Kamath | Punjab National Bank | 32 | NA | Deepak S Parekh | HDFC | 33 | 7 | G M Rao | GMR Infrastructure...
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...DARA & SON PVT. LTD Rohini, Sec. 29, New Delhi Research Paper by Manish Bhatt and Prabhudas Lilladher ATTRACTIVE MIDCAPS AMONGST RECENT IPO ISSUES:- [pic]Tech Mahindra and GMR Infrastructure have once again raised interest in the IPO segment. While Tech Mahindra and GMR Infra are obvious choices experts are also bullish on Nectar Life sciences, Unity Infra, All cargo Global and…With over subscription of Voltamp Transformer recently experts give attractive midcap picks from this fraternity for the long-term. Future business model, sound managements, availability at prices below their issue price, attractive valuations, niche positioning within their industry and future growth are important reasons why investors should log on to these IPOs feel a bevy of experts Money control spoke with. Apart from that Keynote Capitals in its report titled ‘Attractive Recently Listed Midcap Stocks’ have mentioned names like Nectar Life sciences, Repro India, Talbros Automotive and K Sera. While a number of them are available at a substantial premium to their offer price, six of them are still quoting at a discount to their issue price. Everest Kanto looks pretty good at current levels for the long term. All cargo Global also looks good in the recently listed midcap IPOs. Both the companies are in a niche segment and have done quite well on the fundamentals post-listing. Everest Kanto ranks first as far as LPG cylinder manufacturing is concerned. It posted fairly...
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