Wind Turbine Manufacturer Suzlon Partners with REC for Working Capital Lines

Indian wind turbine manufacturer, Suzlon Group has announced the execution of definitive documents for securing working capital facilities with REC Limited. Suzlon will utilise this facility for meeting working capital requirements for the execution of its current order book and future order pipeline.

This initiative will enable the firm to ensure faster ramp-up of its operations and improve the utilisation of its installed capacities. Challenges in securing working capital for the last few years were a major constraint in increasing volumes and orderbook expansion.

Himanshu Mody, Chief Financial Officer, Suzlon Group said, “The current facility is non-fund based, which will primarily be off-balance sheet keeping us debt-free while significantly improving commercial terms with our customer and suppliers. This facility is rolling in nature and will allow the Company to execute current and future orders from its marquee customers.”

At its recent investors call, Suzlon claimed that the increased demand in the wind energy market and the wide range of services rendered by the company led to its increased EPC market. The firm had an order book of 1,613 MW as on September 2023.

Last month, Suzlon also received the RLMM (Revised List of Models & Manufacturers) Listing from MNRE (Ministry of New and Renewable Energy) listing of its S144 – 3 MW series of wind turbines.

Suzlon’s manufacturing facilities are spread across 14 locations in India. Suzlon boasts service portfolio of over 14.3 GW in wind energy assets. The Group has 6 GW of installed capacity outside India as of September, 2023.