Study Of The Suzlon-Hansen MergerEssay Preview: Study Of The Suzlon-Hansen MergerReport this essaySuzlon Hansen MergerContentsSUZLONHANSEN TRANSMISSIONINDUSTRY ANALYSISWind energy – at an inflexion pointMARKET POTENTIAL OF WIND ENERGYValue Chain of the industryCritical success factorsWind energy project sectorIndustrial and wind turbine gearbox manufacturingSTRATEGIC INTENTSUZLONSuzlon competitive strengthsRisks and concernsStrategic Intent of the acquisition for Suzlon EnergyStrategic Intent of the acquisition for Hansen TransmissionsCongruence in IntentSynergy BenefitsDeal StructuringPost merger integrationOrganization structure of SEL after reorganizationAssessment of the DealReferencesSUZLONSuzlon Energy Ltd (Suzlon), promoted by the Tanti family in 1995, is Indias largest and worlds sixth largest supplier of Wind Turbine Generators (WTGs) , with proven technical and execution capabilities to offer end-to-end solutions. Suzlons core business comprises of development, manufacture, sale and maintenance of wind power systems. Suzlon was quick to realize that in an industry where customer purchases are driven by project IRR (and not by product differentiation); cost leadership was paramount to profitability. To achieve this, Suzlon has built a functionally diversified business model that seeks to pool together best resources in each region to deliver world-class products at competitive price.
Figure 1 – Suzlon Business PortfolioHistoryIncorporated in 1995 by Textile manufacturer Mr. Tulsa Tanti.Entered into no. of technological collaboration with no. of German companies & Wind energy division of Enron etc. And entered into different markets through no. of wholly owned subsidiary till 2005. Established R&D centers in Netherlands and USA through small acquisitions.
2005 went public and was oversubscribed.2006, first major acquisition of HTI ensuring vertical integration for its end to end solution provider vision.2007 acquired RePower of GermanyHANSEN TRANSMISSIONHansen Transmissions International NV (“Hansen”), headquartered in Belgium is a leading gearbox and drive train manufacturer with strong R&D capabilities and modern manufacturing facilities. Hansen has a focus on the fast growing wind turbine generation sector and is also active in other industrial segments of the gearbox market. The Company was founded in 1923 and its primary manufacturing facilities are in Belgium, with sales, assembly and service centers in the UK, US, South Africa and Australia. It currently employs 1200 engineering and management professionals spread across these establishments. Hansens current manufacturing capabilities include 3,600 MW of wind turbine gearboxes and 3,000 units of industrial gearboxes per year. Hansen Transmissions supplies drive solutions for a wide range of applications, such as bucket elevators, car crushers, cement kilns, conveyor systems, industrial mixers, paper mills, pulpers and many others. Hansen also delivers gear units for water treatment systems like aerator drives, screw pump drives and brush aerator drives for waste water treatment plants.
For many years, Hansen is also an experienced and known partner in renewable energies, particularly as a supplier to the wind power generation industry.
History1923, La Mecanique Genrale(LMG) established in Antwerp for customized gear manufacturing, David Hansen works as an engineer.1950, Hansen gets patent for standardization of gear manufacturing. Machinery and Gear Hansen (MGH) is established as subsidiary of the company. Shift from gear manufacturer to industrial transmission solution provider
1966, LMG and MGH are merged and name changed to Hansen Transmission International (HTI) in 1972.It was merged, demerged till 1999 within BTR plc. Organization which was renamed to Invensys.Later in 2000, it was sold to private equity firm Allianz Capital partners.INDUSTRY ANALYSISWind energy – at an inflexion pointThe American Wind Energy Association (AWEA) reports that the cost per kWh of wind generated electricity has fallen from 38 cents in the early 1980s to 3-6 cents today depending primarily on wind speed at site. In UK, for instance, developers have contracted to build wind farms at a price of less than USD 3 cents/kWh, comparable with other conventional sources of power. Rising fossil fuel prices have dramatically influenced the competitive position of conventional power generation technologies rendering wind power even more competitive. Today favorable cost economics has brought wind energy at an inflexion point.
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As of 2018, this article only has 0.0006kWh and is the most accurate list I have seen. If you would like to know more, read more, or subscribe to be notified of changes. More information.
http://info.btr.gov/en/content/energy/2016-02-15_wink.html
As of 2018, this article only has 0:0% of its maximum rated watts of 30 watts (the average value is 10 watts in 2017 for UK). It also has low output ratings, which mean when the amount is rated, it gets higher output values on higher rated watts. We therefore have to recommend that we stay tuned and increase the rating at some point…
http://en.wikipedia.org/wiki/Wind_power#Wind_power_in_Scotland
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