Siemens Energy Sells Majority of its Indian Wind Business to TPG

A consortium led by TPG, a leading worldwide alternative asset management company, has agreed to buy a 90% share in Siemens Gamesa's onshore wind turbine generator manufacturing operations in Sri Lanka and India. Without revealing the purchase value, Siemens Gamesa stated in a statement that it will keep the remaining 10% of its wind business in India and Sri Lanka. Siemens Energy owns Siemens Gamesa, a wind power company. In addition to Siemens Gamesa's ongoing investment, TPG will receive a sizeable minority investment from MAVCO Investments, a private business owned by a few members of the Murugappa family, the statement stated. Former JSW Energy CEO Prashant Jain will also acquire a minority ownership in the business as a Climate Change Partner.

Forming a New Independent Company

After the deal closes, a new independent business will be established to address the potential of the Indian wind market by creating a best-in-class business for the production, installation, and maintenance of onshore wind turbines. Onshore wind turbine production, installation, and maintenance in India and Sri Lanka are covered by the agreement. According to the statement, Siemens Gamesa will transfer about 1,000 workers and its current manufacturing facilities to India while continuing to grant the new business an exclusive licence for its technology and intellectual property and creating the next generation of goods. However, the business withheld the transaction's financial information. According to Vinod Philip, a member of the Siemens Energy board who oversees Siemens Gamesa, the new business would better serve the Indian market and provide a long-term outlook for both consumers and staff. Siemens Gamesa may focus on other key areas while this guarantees ongoing support and growth in this thriving sector.

New Board Members

Vellayan Subbiah will chair the new company's board of directors, while Prashant Jain will be its executive vice chairman. The Siemens Gamesa representative on the board will be Vinod Philip. The group believes onshore wind will continue to play an increasing role in India's green energy mix, according to Ankur Thadani, Partner at TPG and Head of Climate, Asia. With the support of TPG and MAVCO, as well as Siemens Gamesa's world-class product manufacturing and service offering, this new platform will continue to accelerate the delivery of gigawatts of clean power to millions of Indians across the socioeconomic spectrum. This partnership, as per MAVCO's Vellayan Subbiah, will help India's shift to renewable energy sources and boost the industry in the long run. With the government's mandate for renewable energy and the necessity to meet the country's constant electricity demand, Prashant Jain stated that the wind sector in India is at a turning point. The demand-supply imbalance and the importance of supply in the entire wind supply chain will only increase the nation's need for high-quality wind turbine generator suppliers.