Wind power solutions provider Inox Wind Infrastructure Services Ltd, a step-down subsidiary of Gujarat Fluorochemicals Ltd (GFL), said that it had acquired 100 per cent equity shares of Sarayu Wind Power (Tallimadugula) Pvt Ltd in an all-cash deal.
The deal allows Inox to enter the Andhra Pradesh market with a land bank that can host 18 MW of wind power capacity. “The deal is in line with our strategy to increase our presence in the country. This will add to our existing land bank, which is capable to set up over 4,500 MW of wind power capacities in different States,” Dheeraj Sood, head — Investor Relations, Inox Group, told BusinessLine . The company did not reveal the financial numbers involved in the deal.
Subsequent to the deal, effective December 9, Sarayu Wind Power (Tallimadugula) has become a step-down subsidiary of Gujarat Fluorochemicals, GFL informed stock exchanges in a filing on Thursday.
According to Sood, the company has sold a total of 570 MW of wind power in fiscal year 2015 through Independent Power Producers (IPPs). “We provide turnkey solutions to set up wind power projects for IPPs. They are the suppliers to state electricity utilities. Some of our customers include Tata Power, CESE, GMDC, GACL. In fiscal year 2016, we expect to sell 800-900 MW of wind power,” said Sood.
Prudent strategy The company’s margins have remained stable as it has limited its business model to providing infrastructure and not directly getting involved in the power generation.
“Our margins are stable and also the cost of setting up a wind power project has remained flat at around ₹5-6 crore per MW for the last two-three years. The major component of the cost is not land as it is allotted by the government on a long-term lease of 25 years; the raw materials for wind turbine generators are the largest cost component,” he added.