Insolvent German wind turbine maker Senvion GmbH has finally decided to exit India operations by selling its local manufacturing operation to a strategic investor.
The company announced that it has entered into a binding agreement with a strategic investor to sell and transfer its fully operational Indian entity.
This is further to company’s announcement last year where Senvion India was made an independent entity to manufacture, supply and operate Senvion wind turbines.
“The parties have now entered in the final closure stage where legal documentations and agreements are being discussed. We expect, subject to any regulatory approvals, the transaction to close before June 2020. Further details will be published in due course,” the German wind turbine maker said in a statement.
Thorsten Bieg, Partner at GA-RG who joined the Management Board of Senvion GmbH as a restructuring expert, said: “This is a positive outcome for our Indian entity to find a safe harbour and continue to serve one of the largest Renewable Energy market. We have started working towards an earliest closure and transfer of the Indian business to the new shareholders.”
“As announced earlier, Senvion India is fully independent entity of Senvion GmbH. Now, we have also signed legally binding agreements to transfer the relevant Intellectual Property and knowhow to Senvion India, which will be effective upon the closure.”
Senvion India makes 85 per cent of its turbines in India and has created over 1,000 jobs directly and indirectly. “We will continue to provide world class wind energy solution to projects in India. Looking ahead to the weeks to come, the management team will continue to put all efforts in concluding the transaction at the earliest,” Amit Kansal, CEO & MD of Senvion India, said.
Senvion India has been operational since 2016 and has a fully manufacturing set-up in India along with full end-to-end delivery of Turnkey solutions and after-market service. It has localized its turbines upto 85% thus creating jobs in India and opportunity to ancillary industry related to wind power.
Senvion recently installed a prototype of its 130m rotor turbine which is one of the finest technologies for Indian wind regime. Senvion has as a world class R&D centre in India, which will serve the emerging Senvion India independent entity to develop and deploy new and future technologies.