Friday, 31 October 2008

Suzlon Energy faces tough times

The plans of Tulsi Tanti, Chairman and MD of new age alternative energy company Suzlon Energy, are falling apart like his wind turbine blades. After losing management control in Germany's Repower, the next casualty is the company’s capex plans. They have been slashed by Rs 669 crores for the fiscal, stalling the company's new tower manufacturing facility.

However, Tanti said," We think there is a lot of tower manufacturers already, so don't think there is any need now."

Poor addition of orders have also added to Tanti's woes, as the order book contracted by around Rs 1000 crores to Rs 15,000 crores, with the European market contributing to the slowdown.

Apart from lack of orders and credit crunch, what is also hitting Suzlon is the mark to market losses of Rs 197 crores on account of FCCB and forward forex contracts loss of Rs 33 crore.

Source: ndtvprofit

Posted by Harsh at 13:22

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