Vestas aims to top in wind energy

Bullish on the renewable energy sector, Vestas RRB India Ltd on Monday said it plans to pump in Rs 100 crore (Rs 1 billion) over the next two years to expand its manufacturing facilities in a bid to become the largest wind energy company in the country with a turnover of Rs 4,000 crore (Rs 40 billion) by 2008.

"Our turnover is growing at about 100 per cent annually. This fiscal we are certain to cross Rs 1,000 crore (Rs 10 billion) from Rs 550 crore (Rs 5.5 billion) in 2004-05. With a solid outstanding order book and the great potential in this sector, we would continue to grow at this rate during the next two years," Rakesh Bakshi, managing director, Vestas RRB said.

He said the company's turnover is expected to rise to Rs 2,000 crore (Rs 20 billion) in 2006-07 and to Rs 4,000 crore a year later, making it the largest Indian wind energy company.

The Chennai-based firm currently is the second largest company in terms of turnover after the recently-listed Suzlon Energy and is registering nearly 100 per cent annual growth over the past 2-3 years just like its Pune-based competitor.

Vestas, which has a market share of about 25 per cent in the domestic market at present, has orders in hand to install 200 MW in this fiscal.

At Rs 5 crore (Rs 50 million) per MW, this translates to Rs 1,000 crore (Rs 10 billion) of income. The orders are expected to double to 400 MW next fiscal and to 800 MW in 2007-08, he said.

To meet the rapidly growing demand, Vestas is expanding its manufacturing base in Chennai at an investment of Rs 100 crore (Rs 1 billion). In the first phase, the company would invest Rs 35 crore (Rs 350 million) to set up a greenfield unit for making turbine blades.