TPG has acquired Siemens Gamesa’s wind turbine businesses in India and Sri Lanka, marking a significant deal in the renewable energy sector. Siemens Gamesa, a subsidiary of Germany’s Siemens Energy AG, aims to cut losses and focus on core markets. The acquisition will result in a new independent company, with Siemens Gamesa retaining a minority stake and licensing its technology. The deal, pending regulatory approvals, is expected to strengthen India’s wind energy market.
TPG, a global alternative asset management firm, has agreed to acquire a majority stake in Siemens Gamesa Renewable Energy’s wind turbine generator businesses in India and Sri Lanka. Siemens Gamesa, a subsidiary of Germany’s Siemens Energy AG, has been seeking to cut losses and return its global wind turbine business to profitability by 2026.
According to a statement released by TPG, the transaction is subject to closing conditions and regulatory approvals. However, the financial details of the investment have not been disclosed.
Background of the Deal
Siemens Energy AG had put Siemens Gamesa’s India wind turbine unit up for sale as part of its global restructuring strategy. The move is aimed at reducing financial strain and refocusing on core markets. The investment by TPG Rise Climate, through its Global South Initiative, is expected to scale climate solutions in the region.
MAVCO Investments, backed by members of the Murugappa Group family, along with former JSW Energy CEO Prashant Jain, will also make minority investments in Siemens Gamesa’s India and Sri Lanka businesses.
Formation of a New Company
Upon completion of the acquisition, a new independent company will be established. Siemens Gamesa will maintain a minority stake while transferring approximately 1,000 employees and its manufacturing infrastructure in India. Additionally, Siemens Gamesa will exclusively license its intellectual property and technology to the new entity while continuing to develop new products.
Vinod Philip, a Siemens Energy board member overseeing Siemens Gamesa, emphasized that India remains a promising market for wind energy.
The new company will serve the Indian market more effectively while offering a long-term perspective for employees and customers.”
Vinod Philip
Leadership and Future Outlook
The board of the newly formed company will be chaired by Vellayan Subbiah, executive chairman of Cholamandalam Investment and Finance Company, a non-banking financial entity under the Murugappa Group. Prashant Jain will assume the role of executive vice chairman, while Vinod Philip will represent Siemens Gamesa on the board.
Onshore wind will continue to play a crucial role in India’s green energy mix. With Siemens Gamesa’s expertise and the backing of TPG and MAVCO, this new platform will help accelerate the delivery of gigawatts of clean power to millions of Indians.”
Ankur Thadani, partner and head of climate investments in Asia, TPG
Advisory Firms Involved
Several advisory firms, including Morgan Stanley, Kearney, Deloitte, Alvarez & Marsal, Khaitan & Co., Cyril Amarchand Mangaldas, and Cleary Gottlieb Steen & Hamilton, played a role in structuring and finalizing the transaction.
The acquisition is expected to enhance India’s renewable energy landscape while positioning Siemens Gamesa to focus on its strategic growth areas. Pending approvals, the transition is set to be finalized in the coming months.
