The Hindu Business Line : NEG Micon plans to export turbines next year

Plans ahead
The company is trying to convince the parent company to use its Indian plant as a manufacturing hub and export base for the US and Europe.
In talks with Winergy, a gear box manufacturer belonging to Siemens, to buy gear boxes locally.

Chennai , April 7

NEG Micon (India) Pvt Ltd, a leading wind turbine manufacturer, plans to begin exports of turbines next year.

The company will look to export nacelles (the part that is placed on top of the tower and which houses various parts such as the gear box, controller, generator and brake) and blades.

At a later stage, it will think of exporting towers, provided a change in design is possible and the cost of erecting the towers at the sites does not become too labour-intensive.

Change in mindset

However, for the company to begin exports a change in mindset on logistics is required, says Mr Ramesh Kymal, Managing Director, NEG Micon (India).

For instance, the idea has always been to export in containers, whereas Vestas - the parent company of NEG Micon (India) - adopts the practice of using an entire ship for exports.

The nacelles will go in the hull area and the blades on the deck, according to him.

Export base

He said NEG Micon (India) was trying to convince the parent company to use its Indian plant as a manufacturing hub and export base for the US and Europe. He was confident that the Indian subsidiary would start exports by 2007-08.

The company had still not decided on the turbine model that could be exported or the destination.

Mr Kymal said NEG Micon was in talks with Winergy, a gear box manufacturer belonging to Siemens, which is setting up a plant near Chennai, to buy gear boxes locally.

At present, NEG Micon imported its gear boxes from Hansen in Europe. Mr Kymal felt that with the market for wind turbines growing in India - the country would have added about 1,700 MW of installed capacity in 2005-06 against 1,100 MW in the previous year - it made sense for manufacturers of wind turbine parts to set up plants in India.

This would substantially bring down the imported components in a turbine.

For instance, NEG Micon now imported gear boxes, alternators, brake systems and controllers, which together accounted for 25 per cent in value terms.

Local sourcing of sub-assemblies would bring down turbine costs by 10-15 per cent.

Mr Kymal said NEG Micon sold turbines totalling 320 MW last year with the turnover likely to top the Rs 1,500-crore mark.

Its aim was to become a $2-billion (about Rs 9,000 crore) company in the next three years.

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