Wind Energy Major Suzlon Smiles

- Technical Market Commentary -

March 2, 2009 (FinancialWire) (Cross Border: U.S. India News Wrap) — A freshly off the rack allocation of USD 1.17 billion (INR 5,130 crore) has doubled India’s allocation towards the power sector opening even more opportunities for Power companies such as Suzlon Energy (NSE: SUZLON), Areva (NYESE: AREVA), Tata Power, Reliance Power, Adani Power, besides for coal and hydro power companies like Jaiprakash Hydro. Cut backs on excise duty in power components such as photo-vatics is a welcome move for companies like Moser Baer (NSE: 617140).  

India wants to establish a national clean energy fund and set up 20,000 MW of solar power by 2022. In the 2010 Budget, renewable energy has been allocated USD 0.22 billion (INR 1,000 crore). Additionally, USD 0.1 billion (INR 500 crore) has been allotted towards solar and small hydro power units. The Indian government has also made special efforts to revive coal power projects, which of late have lagged due to fears due to delay in coal linkages.

One company that will particularly smile all around is Suzlon, which holds 60% of the wind energy market share in India and is ranked third among the leading wind energy turbine suppliers globally. Very recently, the Pune based wind power major had received a renewed contract from Gujarat Alkalies and Chemicals Ltd (GACL) for setting up a wind energy project in Gujarat, western India. It also stands to benefit from excise exemptions on inputs for rotor blades and additional benefits from the proposed clean energy fund. 

With a renewed focus on renewable energy, wind power by its very nature is truly global. Suzlon’s overseas revenues come from China, Europe, Australia and Brazil. Its largest market remains the US, though economic conditions have halved orders from there compared to 2008/09.  However, the company expects growth in orders in the second half of 2010. Its strategy is to develop larger rotor machines for 2011/12 deliveries.

Recent developments in the global renewable energy market as well as cash grants being provided by the US Government stand to boost prospects for the players. A recent US Department of Energy (DOE) study, finds that US has the potential to generate up to 37 million GWh hours annually from wind energy alone, as compared to total U.S. electricity generation from all sources of around 4 million GWh in 2009. These figures are reflective of substantial advances in wind turbine technology since DOE’s national wind resource assessments conducted in 1993. And Suzlon – is just one of the many that ride this wave.

Cross Border: U.S. India News Wrap is a news and analysis service from ValueNotes. Cross Border: U.S. India News Wrap is a weekly publication focusing on U.S. corporations and what they’re doing in India. This publication/service is focused entirely on the U.S.-India story, and chronicles growth in cooperation, closer economic ties and mutuality of interest, as U.S. corporations increase investment in India, with particular emphasis in regard to impact on companies, sectors and investing options.

Cross Border: U.S. India News Wrap and ValueNotes accept no responsibility for errors of fact or opinion that may exist in the above commentary. Neither the analyst(s) who has/have written the above commentary nor ValueNotes has a position in any stocks mentioned above, nor has received any payment in any form for the above commentary (or any report associated with the above commentary). ValueNotes does not own or trade in the stocks of companies under coverage. ValueNotes does not provide investment banking services or investor relations services, in order to preserve the independence of its research. Neither ValueNotes nor any analyst writing for ValueNotes incurs any liability arising out of use of the above commentary/report. Reproduction, in whole or in part, of the above commentary/report, without written permission from ValueNotes is prohibited.

Free annual reports and company filings for companies mentioned in the news are available through the Investrend Information Syndicate (at http://investrend.ar.wilink.com/?level=279). Recently issued reports and filings include Bravo Venture Group Inc. (TSX Venture: BVG), Bellway PLC (London Stock Exchange: BWY) (OTC: BLWYF), Chase Corporation (AMEX: CCF), Continental Materials Corp. (AMEX: CUO), Amcon Distributing Company (AMEX: DIT), Eaton Vance Enhanced Equity Income Fund (NYSE: EOI), Majedie Investments PLC (London Stock Exchange: MAJE) (OTC: MJENF), Morgan Stanley Income Securities, Inc. (NYSE: ICB), Grainger PLC (London Stock Exchange: GRI) (OTC: GRTGF), Eaton Vance Insured Municipal Bond Fund (AMEX: EIM), PIMCO High Income Fund (NYSE: PHK) and Shaw Communications, Inc. (NYSE: SJR).

FinancialWire(tm), in cooperation with the Investrend Broadcast Syndicate, also provides complete, daily conference call and webcast schedules as a service to shareholders and investors by the FirstAlert(tm) Network’s “FirstAlert(tm) Daily” (http://www.financialwire.net/news-alerts/). Recently-presented company financial results calls, earnings calls and/or shareholder meeting webcasts now available include Aastrom Biosciences, Inc. (NASDAQ: ASTM), Methode Electronics, Inc. (NYSE: MEI), White Electronic Designs Corporation (NASDAQ: WEDC), Cantel Medical Corp. (EXCH: CMN), Frequency Electronics Inc. (EXCH: FEIM), Pep Boys-Manny, Moe & Jack (NYSE: PBY) and Xeta Technologies, Inc. (NASDAQ: XETA). Recordings are accessible via the search function at http://infoescrow.net/f/?u=http://www.investorcalendar.com by entering any company’s ticker symbol into the search field.

FinancialWire(tm) is a fully independent, proprietary news wire service. FinancialWire(tm) is not a press release service, and receives no compensation for its news, opinions or distributions. Further disclosure is at the FinancialWire(tm) web site (http://www.financialwire.net/disclosures.php). Contact FinancialWire(tm) directly via inquiries@financialwire.net.

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.