Global wind turbine manufacturer Senvion says it has signed definitive agreements to acquire the turbine nacelle production facilities and infrastructure; complete product portfolio suite; wind turbine inventory; and service operations of Kenersys India Private Ltd., in Baramati, India, in order to further penetrate new core markets.
According to Senvion, the production facility of nearly 250 MW has the potential to be expanded further. Senvion will be able to start its operations with the assets immediately after the closing of the transaction and obtaining the necessary approvals.
The product portfolio of the acquired assets ranges from 2.0 MW to 2.6 MW and has rotor diameters from 82 meters to 120 meters, with cumulative installations of 220 MW in India with some of the large local clients. With this acquisition, Senvion gets full rights to own, enhance and sell the Kenersys India product portfolio worldwide, including K82 (2.0 MW), K100 (2.6 MW), K110 (2.4 MW) and K120 (2.3 MW) in development.
The manufacturer says the existing products are also registered with the National Institute of Wind Energy, India, and are available for Senvion immediately. Additionally, Senvion will take over the complete Indian service operations of Kenersys India Private Ltd. (220 MW).
“There are two main advantages of this acquisition: Firstly, we shorten our time-to-market in India rapidly; and secondly, we can build on a strong base to further align the Kenersys products with our existing Indian [research and development] organization and the well-known technical expertise from our Senvion tech centre in Germany,” says Jürgen Geissinger, CEO of Senvion.
“We believe that this acquisition comes at the right time for us when the Indian government sets its sights on 60 GW of cumulative wind energy installations by 2022 and will have a positive impact on creating jobs in India for delivering state-of-the-art solutions for India and additional markets,” he adds.
Manav Sharma, chief financial officer of Senvion, explains that earlier this year, the company announced its intention to invest, access and grow in the Indian market, serving as a member of the Make in India initiative by the government of India.
“We will finance the transaction with existing cash on our balance sheet. Our focus now shifts to working with the Kenersys India team and other stakeholders towards the closing of the transaction,” Sharma says.