German capital goods major Siemens will get a stronghold in the Indian wind energy, where it had a late entry, after signing an agreement with Spain’s Gamesa to combine their wind energy business to create the world’s biggest builder of windfarms.
Siemens, globally, has struggled to turn its wind energy business profitable and its business in India, through its listed arm, is a fledgling business. It will hive off its wind energy business and merge it with Gamesa. The German capital goods major will hold 59% in the merged entity while Gamesa will hold the remaining 41%. “India was the biggest market for Gamesa globally, representing 29% of the global business. The Indian businesses of the two firms are complimentary. Siemens has a fairly small presence in India, while we installed 1,003 MW of wind turbine capacity in India in 2015-16,” Ramesh Kymal, chairman and managing director of Gamesa India, told.