March 5, 2012
Suzlon-subsidiary SEFORGE announces Rs 367 cr (US$ 75 mn) agreement with wind major
Coimbatore / Pune: SEFORGE Limited, a Suzlon Group subsidiary, announced a
key purchase agreement with a leading wind turbine manufacturer for the supply of
machined tower flanges, used for wind towers, over a period of three years. The Rs.
367 crore (US$ 75 mn) contract covers supply of flanges for wind turbine towers for
projects in India and international markets.
Speaking on the agreement, Mr. Kamlesh Bhadani, CEO - SEFORGE, said: This
agreement underscores our ability to deliver components that meet the exacting
standards of the global wind industry.
This agreement, alongside recent agreements with other tower manufacturers and a
large European bearing producer, highlight SEFORGEs growing presence as an
independent parts supplier to wind and related industries. We project that by FY13
50 per cent of our sales will be from companies outside the Suzlon Group.
Speaking on the order, Mr. Tulsi Tanti, Chairman Suzlon Group, said: This is a
very important order that underscores our collaborative relationship with other major
wind turbine companies the world over. Wind has today achieved parity with most
conventional sources of energy, beating even gas in per-unit cost in some markets;
and it is projected that by 2015 wind will be truly competitive against even coalbased
power. With wind contributing a mere three per cent to the worlds energy grid
today, we as an industry have a enormous opportunity before us to become a central
pillar of the energy mix of the future.
SEFORGE operates a state of the art forging facility capable of producing seamless
forged rings of maximum diameter of 5.2 meters, with an annual capacity of
between 40,000 to 60,000 rings at Vadodara, Gujarat. SEFORGE has established
itself as a key supplier to all major wind turbine manufacturers in India for the
supply of forged rings used in wind turbine towers and bearings. The company also
supplies rings to major international players in the oil and gas, power and defense
sectors over and above the bearing and wind turbine sectors.
Three long-term agreements signed by SEFORGE in last few months together will
consume approximately 40 per cent of SEFORGEs forging capacity for the next three
years.
SEFORGE also has a foundry division, based in Coimbatore, with a modern
manufacturing facility capable of producing large sizes of castings with an annual
capacity of 120,000 MT of castings. Large size castings are primarily supplied to wind
industry, and the Foundry division also has potential to diversify into heavy
engineering, aerospace and power sector equipment.
