Siemens Gamesa and a group of investors led by TPG intend to jointly address the Indian onshore wind market potential through a new company, in which TPG will be the majority shareholder. Siemens Gamesa will divest 90% of its wind business in India and Sri Lanka, retaining a 10% stake in the transferred business. The agreement includes the manufacturing, installation, and service of onshore wind turbines in India and Sri Lanka.
As part of the business transfer agreement, Siemens Gamesa plans to transfer around 1000 employees and two manufacturing plants in India into the new company, and will continue to support the business’s growth through a long-term technology licensing agreement. The financial details will not be disclosed, and the transaction is subject to customary closing and regulatory approvals from the respective authorities.
India is a high growth market for the wind energy sector, with an anticipated addition of approximately 57 GW of capacity by 2032. As a strategic decision Siemens has chosen to transfer majority ownership to TPG, a partner with extensive experience in the Indian market and a strong commitment to green projects globally, allowing Siemens Gamesa to shift its strategic focus to other core markets.
Vinod Philip, member of the Board of Siemens Energy responsible for Siemens Gamesa, commented: “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. The new company will serve the Indian market more effectively while also offering a long-term perspective for employees and customers.”
Ankur Thadani, partner at TPG and head of Climate, Asia, commented: “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. We believe onshore wind will continue to play an increasing role in India’s green energy mix.” The Design Centre activities of Siemens Gamesa’s technology function in India will not be subject to this transaction and will remain within the global wind power business of Siemens Energy.
Siemens Gamesa has a cumulative installation base of almost 10 GW in India and provides service to a fleet of more than 7 GW under long-term agreements.
