SUZLON:POWERING A GREENER TOMORROW

Suzlon Energy Limited (Suzlon) was established in 1995 by Tulsi Tanti and is headquartered in Pune, India. It came into picture because of depletion of conventional energy resources like coal and oil and ever increasing pollution levels caused by the combustion of these fossil fuels .The concerns led to the thought of some environmental friendly sources of power and energy. Such a situation led to beginning of journey of Suzlon into renewable sources of energy industry. The company along with its subsidiaries engages in designing, developing and manufacturing of wind turbine generators and related components like rotor blades, control panels, nacelle cover, tubular towers, Generators and gearboxes. Further, the company also provides for consultancy, design, manufacturing, installation, operation and Maintenance services as well as involved in wind resource mapping, identification of suitable sites and technical planning of wind power projects. It started journey with small projects to supply wind turbine generators for a 3.34 MW wind farm project in Gujarat. It got its first international sale order in U.S.A. from Dan Mar & Associates to supply 24 turbines. The company principally operates in India, China, The Americas, Europe, New Zealand, South Korea, South Africa and Australia. Suzlon, a major force in Global Wind Industry (Ranked 5thWorldwide) by installed capacity. It provides end-to-end power solutions. The company holds nearly 10.5% share in the global market. Now, the company has the total production capacity of over 3000 MW. Currently it has a combined manufacturing base of 2,700MW of annual capacity, and is undertaking an aggressive expansion program to expand its base to 5,700 MW of capacity in FY2009.

Milestones: The Company obtained the official non-exclusive, nontransferable license for the manufacturing, marketing, dealing and servicing of APX-60 type blades from the trustee of Aerpac B.V upon its liquidation, for consideration of Euro 200,000 with an agreementthat was entered into between the trustee of Aerpac B.V and theCompany dated June 4, 2001. This license is valid for an indefinite period. The growth story so far is as follows:

1998: Company installed first wind turbine in Maharashtra Satara district.

2000: Commissioned 50MW wind turbine generator at Vankhusavade in Maharashtra.

2001: Formation of subsidiaries with Suzlon wind Energy Corp, USA and Suzlon Energy.

2002: First export order i.e. First Wind Turbine in the USA.

2003: Representative office in Beijing, China.

2005: Korean Order for a 150 MW for the Jeju Wind Farm Project

2006: 200MW Wind Farm Project for Australia Gas & Light Company.

In March 2006, it acquired Hansen Transmissions, the world's second largest turbine gearbox maker, for US$585mn.

2007: 400 MW deal with PPM Energy of Portland, USA. Acquired German wind turbine company RE Power. In June 2007, Suzlon finally saw off French nuclear group Areva in a hard fought battle for Repower, paying US$1.9bn for its German rival.

2009: Market entry into Sri Lanka with an order to supply 10 MW of wind turbine capacity to a project developed by Senok Wind Power Pvt. Ltd. Looking at the option to start business operations in the Canadian market in 2010.

Strengths: Skill Amalgamation Cost Reduction Reverse outsourcing End to End Solutions Vertical Integration and Amalgamation Market leadership in India and Global Presence Integrated Business Model Good Innovations and Research & Development Human Resources The Electricity Act, 2003, specifies that a minimum percentage

of power generation should come from non-conventional energy Sources.

Weakness: Management Structure entirely dependent on Tanti Brothers. Capital Intensive Overseas Business Operational Risk Foreign Cash Conversion Growth in Assets overweighting Growth in Profits Basic Infrastructure and problem from Locals

Opportunities: Environmental and Government initiatives Favorable tax exemptions Steady source of demand Untapped offshore Market Green Power Revolution

Threats: Intense competition Over dependence on US for business Foreign Exchange Risk Technology Risk Decreasing Price of crude Interest rate increase in loans Further Cancellation of orders

Clientele: Name CountryMSPL LTD. India

Bajaj Auto Ltd IndiaTATA Group IndiaRELIANCE Group IndiaEdison Mission Group U.S.AJohn Deere Wind Energy U.S.ATierra Energy U.S.AMaestrale Green Energy ItalyTechnologies Energeticas Sa PortugalAyen Energy Company TurkeySIIF Energy BrazilAustralia Gas & Light Australia

Competitors:Gamesa (Spain)Vestas (Spain)Enercon (Germany)GE Wind (USA)Global Wind Energy ETF (USA)Nordex (Netherlands)GoldWind (China)Clipper Windpower (UK)Bhel (India)GE Wind Energy (US Subisidiary,India)Enercon (India) Ltd.Vestas Wind Technology India Pvt. Ltd.NEPC India Ltd.

Market Share

CONCLUSION from experts:At this price, stock is having very low downside risk. The entire Negative has been discounted in the price. Investor with low risk Appetite could start accumulating this stock. Investors can initiate fresh long positions at the dips around the level of 55. Currently the share price of Suzlon stands at rs.58.50 If the investors are holding the stock, can remain invested. We expect a return of 50-70% from this level.