Siemens Gamesa, the Spanish wind turbine maker, said on Wednesday that it will sell a 90 percent stake in its Indian onshore wind business to a group of investors led by US-based TPG as part of a strategic partnership.
The transaction, which includes manufacturing, installing and servicing wind turbines in India and Sri Lanka, will see TPG become the majority shareholder of a newly formed company.
Siemens Gamesa will retain a 10 percent stake and continue supporting the business through a long-term technology licensing agreement. Financial details of the deal were not disclosed.
The company said that approximately 1,000 employees and two manufacturing plants in India will be transferred to the new entity as part of the business transfer. The deal is subject to customary regulatory approvals.
India, one of the world’s fastest-growing wind energy markets, is expected to add about 57 gigawatts of capacity by 2032.
Focus on other core markets
Siemens Gamesa, which currently holds a 30 percent market share in India, said the divestment would allow it to focus on other core markets while ensuring dedicated attention to India through TPG’s expertise and financial backing.
“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,” said Vinod Philip, a board member of Siemens Energy responsible for Siemens Gamesa.
TPG’s investment in the new company will be made through its climate-focused TPG Rise Climate fund, marking the first investment from its Global South Initiative.
Other investors include MAVCO Investments, a firm linked to India’s Murugappa family, and Prashant Jain, the former CEO of JSW Energy, who will also take a minority stake as a Climate Change Partner.
“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,” said Ankur Thadani, partner at TPG and head of climate, Asia.
Vellayan Subbiah, a member of the Murugappa family, will chair the newly formed company, while Jain will serve as its executive vice chairman. Siemens Gamesa will have board representation through Philip.
Siemens Gamesa’s design center operations in India, which employ about 700 people and another 500 employees, will remain part of Siemens Energy’s global wind power business.
