Suzlon snaps up wind power service player to expand turbine reach
Indian group to take majority stake in Renom Energy to chase third-party business in growing market
Suzlon set out its stall to be a key player in India’s growing wind power service market with the majority acquisition of O&M specialist Renom Energy Services, in a deal worth 6.6bn rupees ($78.6m).
Renom is according to Suzlon India’s largest multi-brand O&M service provider with 1.78GW of wind under its wing, along with 148MW of solar and 572MW in balance of plant.
Turbine OEM Suzlon said following the deal its in-house service division will focus on its own machines while Renom goes after what it reckons at a 32GW non-Suzlon fleet that will only grow as India chases ambitious renewable energy goals.
Suzlon will first pay 4bn rupees for a 51% stake in Renom from current owner Sanjay Ghodawat Group. It must then buy another 25% stake within 18 months.
Suzlon said the deal, whose closing is still subject to certain conditions, “will help unlock Renom’s core potential and position it from a place of strength to become a leading independent service provider and custodian of multi-brand renewable energy assets”.
Suzlon vice chairman Girish Tanti said: “With India’s target to achieve 500GW of renewable energy installations by 2030, we shall see a multitude of different technologies and wind turbines of various makes in the market going ahead.
“Renom has emerged as a single largest player in this domain with great strength and potential to tap further into this market segment.”
CEO JP Chalasani added: “We intend to support and strengthen Renom further as a standalone ISP to help provide best-in-class customer service to all multi-make customers in the wind energy O&M space.”