Key Takeaways
- TPG-led consortium agrees to acquire a 90% stake in Siemens Gamesa’s onshore wind turbine division in India and Sri Lanka.
- The new independent company aims to enhance the manufacturing, installation, and service of wind turbines, utilizing Siemens Gamesa’s technology.
- Industry experts emphasize the growing demand for quality wind turbine suppliers due to India’s renewable energy goals.
TPG Consortium to Acquire Siemens Gamesa’s Wind Business
Leading global alternative asset management firm TPG, along with a consortium of investors, has reached an agreement to acquire a 90% stake in Siemens Gamesa’s onshore wind turbine generator manufacturing business in India and Sri Lanka. Siemens Gamesa, a subsidiary of Siemens Energy, will retain a 10% stake in its wind operations in the region. While the deal’s financial details remain undisclosed, the agreement underscores the growing interest in renewable energy investments.
Supporting the investment, MAVCO Investments—a private investment firm linked to select members of the Murugappa family—will make a substantial minority investment alongside TPG. In addition, Prashant Jain, the former CEO of JSW Energy, will join the venture as a minority stakeholder and Climate Change Partner.
Following the transaction’s completion, a new independent entity will be established to enhance the manufacturing, installation, and servicing of onshore wind turbines in these markets. Siemens Gamesa plans to transfer approximately 1,000 employees and existing manufacturing facilities in India to the new company while continuing to license its technology and intellectual property. This will enable the new organization to leverage proven technologies and develop innovative products tailored to the Indian wind market.
Vinod Philip, a board member of Siemens Energy responsible for Siemens Gamesa, emphasized that the new venture will allow for more effective service to the Indian market while providing ongoing support and opportunities for employees and customers. “This ensures continued support and development in this vibrant market, while Siemens Gamesa can concentrate on other core markets,” he noted.
Leadership for the new company will be composed of experienced figures, with Vellayan Subbiah serving as the Chair of the Board of Directors, and Prashant Jain taking on the role of Executive Vice Chairman. Vinod Philip will represent Siemens Gamesa on the board, driving synergy between the parent company and the new venture.
Ankur Thadani, Partner at TPG and Head of Climate, Asia, emphasized the significant role onshore wind is expected to play in India’s clean energy landscape. He remarked, “We believe onshore wind will continue to play an increasing role in India’s green energy mix… this new platform will accelerate the delivery of gigawatts of clean power to millions of Indians.”
Vellayan Subbiah added that the collaboration is poised to foster long-term growth within the sector while bolstering India’s transition to sustainable energy sources. Similarly, Prashant Jain pointed out that the Indian wind industry is at a crucial juncture, driven by government mandates for renewable energy and a rising need to satisfy consistent power demands. He indicated that the demand for quality wind turbine generator suppliers will likely increase in response to these challenges.
The acquisition is contingent upon closing conditions and necessary regulatory approvals, but if successful, it is expected to significantly impact the wind energy landscape in India and Sri Lanka, aligning with global movements towards sustainable energy solutions.
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