Suzlon
Identify the issues that arise from the case as of 2008.
Suzlon Energy Limited (Suzlon) has emerged as India’s largest manufacturer of wind turbines besides making an international footprint in the wind energy market.By adopting an aggressive growth policy, Suzlon has transformed itself from a family run business into a successful enterprise. A wild card entrant in the turbine manufacturing and project development arena, Suzlon was driven by the aspiration to create reliable power that was both cheap and environment friendly. Being completely new in the business of manufacturing wind turbine generators, it was challenging and risky for Suzlon due to the high capital investment required. But the ever-increasing demand for power and the sudden shift towards renewable energy due to environmental concernsmakes this a very lucrative industry to invest in.
Government policies have played a substantial role in providing incentives and supporting the growth of wind industry in Europe, North America and Asia. The environmental benefitsand the energy security provided by wind energy are leading many governments to implement a wide range of policy mechanisms. But in order to be effective, national and local government support is imperative. These policy incentives not only motivate players to enter wind energy market but have also raised the standards that need to be met. One of the dominant policies observed in the U.S and India was the Renewable portfolio standards (RPS), which required Suzlon and the like to expand their production of energy to meet the RPS standards. Hence adapting to different government policies in different countries is essential to meet the consumer needs.
The wind industry was growing rapidly on a global scale in the developing world and the U.S, and was no more concentrated in Europe, the oldest market for wind energy. Suzlon faced heavy competition in the International market from players like Vestas (Denmark), General Electric Wind (U.S),
Suzlon Energy Limited (Suzlon) has emerged as India’s largest manufacturer of wind turbines besides making an international footprint in the wind energy market.By adopting an aggressive growth policy, Suzlon has transformed itself from a family run business into a successful enterprise. A wild card entrant in the turbine manufacturing and project development arena, Suzlon was driven by the aspiration to create reliable power that was both cheap and environment friendly. Being completely new in the business of manufacturing wind turbine generators, it was challenging and risky for Suzlon due to the high capital investment required. But the ever-increasing demand for power and the sudden shift towards renewable energy due to environmental concernsmakes this a very lucrative industry to invest in.
Government policies have played a substantial role in providing incentives and supporting the growth of wind industry in Europe, North America and Asia. The environmental benefitsand the energy security provided by wind energy are leading many governments to implement a wide range of policy mechanisms. But in order to be effective, national and local government support is imperative. These policy incentives not only motivate players to enter wind energy market but have also raised the standards that need to be met. One of the dominant policies observed in the U.S and India was the Renewable portfolio standards (RPS), which required Suzlon and the like to expand their production of energy to meet the RPS standards. Hence adapting to different government policies in different countries is essential to meet the consumer needs.
The wind industry was growing rapidly on a global scale in the developing world and the U.S, and was no more concentrated in Europe, the oldest market for wind energy. Suzlon faced heavy competition in the International market from players like Vestas (Denmark), General Electric Wind (U.S),