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In Focus: It's Written on the Wind...

Suzlon Energy is still not everywhere you go but stands a chance

The Suzlon Energy IPO late last year was an instant hit. The issue was oversubscribed nearly 46 times. After listing, the stock price rose sharply. Though the recent market crash has taken some wind out of the stock price, the company's march ahead to harness wind energy continues. After the recent acquisition of Belgium-based Hansen Transmissions, a gear box manufacturer that is widely used in building wind turbines, the firm is set to play a bigger role. A market leader in India, Suzlon's Q4 FY06 installations were likely to be 380 MW as compared to 250 MW, a year ago. The firm generated 970 MW of clean energy in FY 2006, the most by any player in the field in India. In the March 2006 quarter results, the company reported a 59.10 per cent growth in income from operations over the previous year to Rs 1,548.71 crore. Sales at Rs 3,841 crore was up 98 per cent from the previous year.

Wind energy is the least expensive form of new power generation methods. Though it accounts for just a per cent of the total energy use of the world, the cost of wind-generated electric power has dropped significantly in the recent years. If wind energy succeeds as a relevant alternative to non-renewable sources of energy, Suzlon will play a crucial role.