After providing electricity for his own company, Tanti moved into wind energy production as a way to secure the textile company's energy needs, and founded Suzlon Energy. In 1994, he ordered two wind turbines from Danish manufacturer Vestas, essentially taking his factory off the power grid. https://sites.google.com/.../home/gujarat-connection/tulsi-tanti The finances of state governments are nothing to speak about either, more so as the Centre has still not released their share of GST collections for FY20. The company spokesperson confirmed the receipt of the email and said the company's management had nothing more to say on the debt restructuring beyond what was already publicly available. ” he explains. The old fashioned lalaji in him is very much there,” points out an ex-Suzlon official. Tulsi got married with Gita. That preferential allotment would eventually reduce the holding of the Tanti family from 30.94% to 24%, though control was to remain with them. Tulsi Tanti built his empire on 'soojh-boojh', loans and one other secret ingredient. It has proposed reappointment of two members of the company’s promoter family as directors—Tulsi Tanti, presently designated as the chairperson and managing director; and Vinod Tanti, the company’s executive director and chief operating officer. Tulsi Tanti has done his graduation in commerce and he also holds a diploma in mechanical engineering. While new directors have come on board, IDBI does not have a nominee yet. That decline in tariff meant an impact on the value chain, be it the developer, wind equipment manufacturer or the logistics companies,” explains Kapadia, who adds that the impact on a wind equipment manufacturer such as Suzlon saw its Ebitda margin dropping by half to 8-9%. Kapadia says all this led to Suzon going into the red and net worth turning negative. InGovern’s Subramanian says the banks should have been more aggressive with the recovery process. “He pays top dollar but is a control freak. It must have seemed Quixotic to his peers. Amit Tandon finds it hard to understand why this restructuring deal was done, considering the company’s past record with debt restructuring. By October/November last year, it was obvious “there was nothing left in the company with a value of maximum Rs.15 billion. In its worst form for Suzlon, the story of renewable energy in India could one be of solar trumping wind. We still live in hope that the company has good technology and one day will give results,” is all that he was willing to say. On his appointment, Tulsi Tanti, Chairman and Managing Director, Suzlon Group said, “I am delighted that Ashwani Kumar is joining the Suzlon family. Infrastructure “He brings with him rich experience of power and infrastructure sectors in India. Only 2.4 GW was added in 2019, compared to 2.3 GW in 2018 and 4.1 GW in 2017, according to a May 2020 report by Global Wind Energy Council (GWEC) and MEC Intelligence. He has an elder son namely Pranav Tanti and a daughter named as Nidhi Tanti. Most financial blow-ups are thus the outcome of excess on the part of not just the entrepreneur but also indulgent bankers, guided by their own vested interest. Promoted It has over one million analogue and digital cable subscribers. Tanti and family hold less than 20 per cent stake and, of that, more than 76 per cent has been pledged. MUMBAI: Greenko Group is acquiring Orange Renewable from Singapore’s AT Capital Group for an enterprise value of $850 million, ending weeks of intermittent negotiations. Her unlikely travel companions for the adventure were her parents, Tulsi and Gita Tanti. With the help of some of his … In that sense, we were helpless,” one of them said. Founded by Tulsi Tanti in 1995 Suzlon Energy Limited is a wind turbine supplier having its head-office in Pune, Maharashtra. Strangely, on the contrary, there is no incentive for good governance and for taking hard decisions to ensure a clean banking system. Tulsi Tanti and his family directly and indirectly own 66 per cent of the Rs 13,670-crore Suzlon Energy, the world’s fifth leading supplier of wind turbines with a 10.5 per cent share of the global market. Contours of the deal are still being worked out. In 2018, Suzlon was the market leader with 41%. Ltd., later changed the name to Suzlon Synthetics Ltd., and, thereafter, to Suzlon Fibres Ltd. Can their love last? Whatever the justification, according to Subramanian, perennial debt restructuring simply sends a negative message. In the early days, he was celebrated as a green warrior. Merrill Lynch is believed to be one of the advisors to the transaction. Effectively, taking into account the time value of money, the banks would be taking 60% haircut. Merrill Lynch is believed to be one of the advisors to the transaction. As it is, for the overall wind-power industry, capacity addition has slowed down. When a sector stagnates for long, consolidation is the eventual outcome. What came to Tanti’s rescue was the inter-creditor agreement approved by RBI on June 7 last year. Tulsi Tanti Blogs, Comments and Archive News on Economictimes.com. In fact, states such as Gujarat, Maharashtra and Tamil Nadu saw a fall in industrial power consumption in FY20 compared with FY19. Days Trial It was bought for €1.5 billion and, in true Tanti fashion, the buy was financed largely through debt. Renewable energy has transformed into a mainstream source of energy offering power plant scale solutions, making his experience highly relevant for us. Given that the company has already gone through restructuring earlier, Tandon says that another restructuring just delays dealing with the problem. The ultimate superpower, if you think about it, is the power to influence. That complicates issues since there is no clarity on who will run the company on an operational basis. That joy was not entirely unfounded with the Suzlon stock already having moved to Rs.24.5 at the time of the conversation or a cool 36% gain. Satish Mehta is a famous businessman of India, he also the founder and director of Emcure Pharmaceuticals and it is a largest distributor of pharma in India and US. The company itself logged terrible performance in FY20: it installed 59 MW compared to 496 MW in FY19 and on sales of Rs.29.33 billion, it lost Rs.26.92 billion (See: Diminishing return). In fact, it was a learning he picked up from his time in the textile industry. A Suzlon official, who worked with Tanti, remembers having that discussion with him just after the company had gone public. Through thick, thin and terrible, the Suzlon Energy promoter has displayed the ability to charm banks and retain control. Includes DocuBay and TimesPrime Membership worth ₹1499 & ₹999 resp. He later realised that there was not much scope because of … Through thick, thin and terrible, the Suzlon Energy promoter has displayed the ability to charm banks and retain control | Krishna Gopalan & Asha Menon Published 6 months ago on Jul 18, 2020 • 19 minutes Read. But, Tanti prevailed. You Telecom has cable TV operations in Mumbai, Bangalore, Visakhapatnam and Dharwad in Karnataka. “It was fairly well known that access to funding was never an issue. The banks may have a hard-to-break trust in the promoter, but they should have considered the dismal state of wind energy in India. It has proposed reappointment of two members of the company’s promoter family as directors—Tulsi Tanti, presently designated as the chairperson and managing director; and Vinod Tanti, the company’s executive director and chief operating officer. Renewable energy has transformed into a mainstream source of energy offering power plant scale solutions, making his experience highly … "We are convinced that the support from Dilipbhai Shanghvi and family will help in creating a long-term sustainable value for our stakeholders," Suzlon Group Chairman Tulsi Tanti said. What has made things worse for the banking system is, ministerial interference aside, the primary aim of every bank chairman is to evergreen bad loans to the degree possible during his tenure to avoid a bad report card for himself. That financial year (FY09), Suzlon’s net debt was Rs.118 billion. The Pune-based wind major, which had a … But that does not address the core issue of sustenance in an industry which is in the doldrums. Prior to joining Suzlon in April 2016, he had stints at Reliance Power, Punj Lloyd and NTPC. Suzlon’s plans came unstuck post the 2008 financial crisis as it never regained the momentum to outrun its debt. When the deal was signed in February last year, Shanghvi was seen as a white knight to Tulsi Tanti, group chairman of Suzlon that has been plagued by massive debt and … He further added that, “Having worked extensively in infrastructure as well as in utility management, Ashwani is the right fit for the organization given the current context of new opportunities for wind and renewable energy in India and all over the … Investors and shareholders may find it difficult to trust the company again. “What drives him is ambition and nothing else. The stock quotes at Rs.5, DSA is down 75% on its investment and its holding stands diluted post the latest debt restructuring. While everyone else was petitioning the government to give them power subsidies, Tanti decided to go off-grid. Tulsi is a managing director of Suzlon Energy. Then, textile businesses were incurring huge power bills and therefore found it hard to spend on other things such as innovation.  Tanti invested in two wind turbines made by the … “Renewable energy has transformed into a mainstream source of energy offering power plant scale solutions, making his experience highly relevant for us. Outlook Business sent individual queries to prominent lenders in the consortium such as SBI, IDBI, Bank of Baroda, PNB, Bank of India, ICICI Bank and Axis Bank but none responded. It appears as if the promoters have the bankers on their side,” he says. These options were deliberated on, says the banker to Suzlon quoted earlier. Suzlon has gone through a loan restructuring in 2010, 2012, 2016 and 2020, which is four times over the past decade. Banks need to say ‘no’, push the company to IBC and force a change in the management,” he explains. Solar has made great strides in the face of falling technology cost, accommodative policy and the fact that wind power installations are largely topography dependent unlike solar. “In that scenario, both the Vestas and Brookfield transactions would have yielded nothing to Tanti. The cost of electricity also offset any profits made by the company. In its September 2019 report, the rating agency had pointed out, “As much as 26% of the 64 GW of projects auctioned by the Centre and the states have received no or lukewarm bids, while another 31% are facing delays in allocation after being tendered. The other worrying part is that bulk of Suzlon’s order book flows through central and state auctions (See: Seller beware). Nothing of consequence has come of Suzlon’s solar plans so far. Suzlon was founded by Tulsi Tanti in 1995, when he was working in a family-owned textile company. In a little more than a decade, his company had become one of the world’s top three wind-energy companies and Asia’s biggest. It had been barely two months since Dilip Shanghvi Family and Associates (DSA) picked up 23% stake in Suzlon Energy at Rs.18 per share in early 2015. He holds Master of Science degree and in Bachelor of Art/Science from Pune University. The wisdom, not to mention the intent of banks, is open to question because they turned down two potential bidders who were in much better shape financially and in terms of management depth. Due to the erratic availability of power locally, and its rising costs, the highest business expenditure after the raw materials was electricity. Suzlon has been losing market share to players such as Siemens Gamesa. 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