Suzlon is likely to leverage Renom for capturing 32GW non-Suzlon OMS market (10GW immediate opportunity), which is growing with India’s target of 100 GW wind energy capacity by FY30.
“The acquisition will expose Suzlon to new sites, potentially benefiting from emerging repowering opportunities. We believe the acquisition represents a strategic move by Suzlon, enhancing its capabilities, expanding its market presence, and creating value,” said domestic brokerage firm JM Financial in its report.
Through this acquisition, Suzlon will likely benefit from the key strengths of Renom like its expertise of maintaining turbines of 14 different makes, from its presence in 7 windy states, demonstrated fleet growth at a CAGR of 30% since FY20 and skilled manpower with technical know-how, stabilised systems and processes.
This will further help the company establish market leadership in non-Suzlon wind energy O&M service business and safeguard the country’s renewable energy assets, irrespective of their original make.Also read: Suzlon shares jump 5% after announcing Rs 660 crore acquisition“OMS business of inactive or stressed players with around 10 GW portfolio across retail customers is an immediate opportunity leveraging the ‘Suzlon’ brand name. Acquisition is an opportunity to capture the non-Suzlon OMS market, which represents around 60% of the 46 GW installed base and is growing with India’s target of 100 GW wind energy capacity by FY30,” stated JM Financial while commenting on the benefits of the acquisition for Suzlon.Post-acquisition, Renom will continue to operate as an independent board-managed ISP. Currently, it is India’s largest multi-brand RE operations and maintenance service (MBOMS) company and its portfolio includes 1,782 MW Wind, 148 MW Solar, and 572 MW BoP under maintenance across customer segments.
Suzlon shares were trading 5% higher at Rs 69.60 on the BSE around 1 pm on Wednesday and have given multibagger returns of 273% to its investors in the last one year.
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