Siemens Gamesa is to divest 90% of its wind business in India and Sri Lanka, while retaining a 10% stake in a new company majority owned by TPG.
The agreement includes the manufacturing, installation, and service of onshore wind turbines in India and Sri Lanka.
As part of the business transfer agreement, Siemens Gamesa plans to transfer around 1000 employees and two manufacturing plants in India into the new company.
Siemens Gamesa will continue to support the business’s growth through a long-term technology licensing agreement, the company said.
The financial details will not be disclosed and the transaction is subject to customary closing and regulatory approvals from the respective authorities.
India is a high growth market for the wind energy sector, with an anticipated addition of approximately 57GW of capacity by 2032.
To ensure the Indian market receives the dedicated attention it deserves, Siemens Gamesa has chosen to transfer majority ownership to TPG, a partner with financial strength, extensive experience in the Indian market and a strong commitment to green projects globally, according to the turbine manufacturer.
This allows Siemens Gamesa to shift its strategic focus to other core markets, it added.
Vinod Philip, member of the board of Siemens Energy with responsibility for Siemens Gamesa, said: “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.
“The new company will serve the Indian market more effectively while also offering a long-term perspective for employees and customers.
‘This ensures continued support and development in this vibrant market, while Siemens Gamesa can concentrate on other core markets.”
Ankur Thadani, partner at TPG and head of climate, Asia, added: “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.
“We believe onshore wind will continue to play an increasing role in India’s green energy mix and this new platform, with Siemens Gamesa’s world-class product manufacturing and service offering, and the backing of TPG and MAVCO will continue to accelerate the delivery of gigawatts of clean power to millions of Indians across the socio-economic spectrum.”
As a leading wind turbine manufacturer in India, Siemens Gamesa currently holds a market share of around 30%.
Supported by a robust manufacturing and supply chain base within the country, Siemens Gamesa has a cumulative installation base of almost 10GW and provides service to a fleet of more than 7GW under long-term agreements.
The new company will continue to uphold the same high quality standards of customer service, the company said.
The Design Center activities of Siemens Gamesa’s technology function in India, which employs around 700 employees, plus another 500 employees will not be subject of this transaction and will remain within the global wind power business of Siemens Energy.