Siemens Gamesa has announced its decision to divest 90% of its wind energy business in India and Sri Lanka to a new company, while retaining a 10% stake in the firm, which will be majority-owned by private equity firm TPG. The deal covers the manufacturing, installation, and servicing of onshore wind turbines in both countries.
As part of the agreement, Siemens Gamesa will transfer approximately 1,000 employees, along with two manufacturing plants in India, into the newly established entity. Despite this move, Siemens Gamesa will maintain its support for the company's future development through a long-term technology licensing agreement, ensuring continued collaboration in the region.
The financial details of the transaction have not been disclosed, and the deal remains subject to customary closing procedures and regulatory approvals from the relevant authorities. Siemens Gamesa's decision to enter into this partnership comes as India's wind energy sector is projected to expand significantly, with an expected addition of 57GW of wind capacity by 2032.
In a statement, Vinod Philip, a member of the board of Siemens Energy with responsibility for Siemens Gamesa, emphasized the importance of the Indian market: “India is and remains an attractive market for wind energy, with significant growth potential. However, after thorough analysis, we have determined that our new partners led by TPG are the optimal owners to harness this potential.”
Philip added that the transfer of ownership would enable Siemens Gamesa to focus on its core markets while ensuring the new company could better serve the Indian market. “The new company will serve the Indian market more effectively while also offering a long-term perspective for employees and customers. This ensures continued support and development in this vibrant market, while Siemens Gamesa can concentrate on other core markets.”
Ankur Thadani, partner at TPG and head of climate in Asia, also commented on the partnership, stating: “Siemens Gamesa has built a leadership position in India's onshore wind market, and we look forward to partnering with them, MAVCO, and Prashant to build on their success.”
Siemens Gamesa, a major player in the Indian wind turbine market, currently holds a market share of approximately 30%. The company's operations in the country are supported by a robust manufacturing base, with a cumulative installation capacity of almost 10GW and long-term service agreements for over 7GW of wind capacity.
The new company will continue to adhere to Siemens Gamesa's high-quality standards of customer service, ensuring that the business's legacy in the region remains intact. Notably, Siemens Gamesa's Design Center activities and a segment of its workforce in India, including around 700 employees and 500 additional staff members, will not be included in this transaction and will remain part of the global wind power division of Siemens Energy.
