The Hindu : Business : Suzlon to invest Rs. 1,500 cr.

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Tuesday, Sep 19, 2006
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Suzlon to invest Rs. 1,500 cr.

Special Correspondent

Bags order from John Deere of U.S.

PHOTO: RAJEEV BHATT

BREEZY PACE: Tulsi R. Tanti, Chairman-cum-Managing Director of Suzlon Energy, addressing a press conference in New Delhi on Monday.

NEW DELHI: Suzlon Energy, a leading wind turbine manufacturer, has lined up an investment of Rs. 1,500 crore for capacity expansion.

"We are investing about Rs. 750 crore at our Baroda and Coimbatore forging and foundry plants and another Rs. 750 crore at Udupi to set up a greenfield turbine manufacturing facility,'' Suzlon Chairman, Tulsi Tanti, told newspersons here on Monday.

The Pune-based company has also bagged a Rs. 1,190-crore order from John Deere Wind Energy of the U.S. to supply 247 MW of wind turbine capacity. This will place its order-book position at about Rs. 5,777 crore.

Suzlon, Mr. Tanti said, would borrow about Rs. 1,000 crore over the next 18 months from markets at home and abroad to fund the two expansion projects, while the balance Rs. 500 crore would be ploughed in through internal accruals.

The Udupi plant, he said, would have a production capacity of 1,500 MW to take the company's total capacity to 4,200 MW. This would include a capacity of 600 MW each at its facilities in China and the U.S., which had been commissioned, he said.

On the company's growth expectations during the current fiscal, Mr. Tanti said: "The global market is growing at 25 per cent. But the markets where we operate such as India, China, the U.S. and eastern Europe are growing at 40 per cent and we hope to grow faster than that.'' Elaborating on the John Deere contract, Mr. Tanti said Suzlon Wind Energy Corporation, the Chicago-based subsidiary of Suzlon's Danish arm, bagged the order to supply wind turbine equipment for a capacity of 247 MW.

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