Suzlon to save 200m euro in costs: Tanti

Suzlon Energy Ltd. | Electric Equipment | Capital Goods & Industrial Consumables | BSE: 532667 | NSE: SUZLON

28 Nov 2011 Evaluate

With its German subsidiary REpower coming fully under its control, the world's fifth largest wind turbine maker Suzlon expects to save 200 million euros in its overall cost by next fiscal. Nearly 65% of its spends are on components, most of which, come from Europe. But, given the current scenario, it plans to concentrate on the domestic market, as well as China, for components. This will help in reducing the material cost by nearly 100 million euros in FY 2013 and another similar amount from other heads. The cost-saving will be on the back of acquisition of the German wind turbine company REpower, which it recently completed.

It will be focusing on market positioning, joint procurement and joint technology development for all the current and future projects. REpower, which was otherwise buying components from the European market, will now import it mostly from India. Suzlon expects its total expenditure, which includes debt-servicing, fixed costs and material costs, to come down by 200 million euros by the next fiscal. Europe is the single largest component market for the Pune-based alternative energy major, as it sources 30 per cent of its entire parts from that region. A tad over 20 per cent is managed from India, while under 10 per cent come from China.