Sun Pharmaceuticals founder Dilip Shanghvi will invest ₹400 crore in a 50:50 joint venture with Suzlon for setting up wind projects across India, and will also provide working capital for 1,200 MW over the next two years.
This investment, from the Shangvi family, is over and above the ₹1,800 crore shelled out earlier this year to buy a 23 per cent stake in Suzlon Energy.
The new JV, in which Suzlon will also invest ₹400 crore by way of equity, will be set up this fiscal and will develop multiple wind power projects totalling 450-500 MW in four States over the next two years, said Kirti Vagadia, Group Head-Finance, Suzlon.
Shangvi will also give an additional working capital facility for 1,200 MW over a two-year period, Vagadia added, but refused to convert this into rupee terms.Senvion sale
On Thursday, the Pune-based wind energy company announced the completion of the sale of its wholly owned subsidiary, Senvion SE, to US-based Centerbridge Partners.
The transaction closure, which follows an agreement signed with Centerbridge in January 2015, has brought in around ₹7,000 crore of cash into Suzlon’s kitty.
“Around ₹5,000 crore of this will be used for debt reduction, while the balance will be used for volume growth of the business,” Vagadia said.
After this, Suzlon’s (reduced) outstanding debt will stand at ₹10,000 crore, including ₹2,000 crore of foreign currency convertible bonds due to mature in 2020, he added.
Elaborating on utilisation of the funds, Vagadia said in addition to investing inland and building of a development pipeline, Suzlon will undertake capital expenditure to set up three to four new manufacturing facilities across India for longer rotor blades.
On plans for further sale of more non-core assets, Vagadia said: “We will be selling three kinds of non critical assets – component manufacturing businesses, old manufacturing units and office buildings. But only to the right buyer at the right price.”