Suzlon Group bags 50.4 MW contract from Sembcorp; stock surges

Suzlon Group has bagged an order for the development of a 50.4 megawatt (MW) power project in Karnataka from Green Infra Wind Energy Limited, a renewable subsidiary of Sembcorp, Suzlon Energy's regulatory filing said on Wednesday. With this, the company will install 24 wind turbine generators (WTGs), with a hybrid lattice tubular (HLT) tower and a rated capacity of 2.1 MW each. The project is expected to be commissioned in 2024. The order is part of the bid won from Railway Energy Management Company Limited (REMCL) by Sembcorp.

According to Suzlon Energy, the Pune-based company will supply the equipment for the wind turbines and execute the project, including erection and commissioning. Suzlon, which is the market leader in wind energy and manufacturing of wind turbine generators, will also provide comprehensive operation, and maintenance services post-commissioning. The company says the project will provide electricity to approximately 33,000 households and curb around 1.29 lakh tonnes of CO2 emissions per year.

"As the country’s leading renewable energy solutions provider, Suzlon is delighted that valued customers like Sembcorp, continue to choose our leading technology and capabilities across the value chain of wind energy. We are proud that our partnership with Sembcorp will assist Indian railways to become a net‐zero carbon emitter by the end of this decade thereby contributing to a sustainable India," says JP Chalasani, CEO, Suzlon Group.

"Every Suzlon turbine ranging over 80%‐90% on domestic content and manufactured in the country through a thriving domestic value chain is a testament to our contribution to the vision of Aatmanirbhar Bharat," Chalasani adds.

The development comes months after Suzlon Group bagged an order for the development of a 48.3 MW wind power project for Adani Green Energy in Mandvi, Kutch Gujarat in October last year. The company will install 23 units of wind turbine generators with a hybrid lattice tubular tower and a rated capacity of 2.1 MW each. In the same month, the company raised ₹1,200 crore via rights issue.

Notably last week, the company underwent managerial changes with Chalasani replacing Ashwani Kumar as the chief executive officer of the company. Chalasani previously served as the CEO of Suzlon Group between April 2016 and July 2020, following which he remained the strategic advisor in the company.

On Wednesday, shares of Suzlon Energy surged 0.9% to hit an intra-day high of ₹8.25 apiece on the Bombay Stock Exchange (BSE). During the session on Wednesday, shares of Suzlon Energy opened a tad lower at ₹8.20 as against the closing price of the previous session at ₹8.17. During the session, the company’s market capitalisation stood at ₹9,693.55 crore as 2,13,13,810 shares exchanged hands on the BSE against the two-week average of 225.36 lakh shares. The company hit a 52-week high of ₹12.19 on December 20, 2022, and a 52-week low of ₹5.43 on July 28, 2022.