Sucheta Dalal :Just Wind and No Power
Sucheta Dalal

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Just Wind and No Power  

May 6, 2009

CROSSHAIRS

 

Just an initial public offering (IPO) was all that was needed to catapult the promoter of Suzlon into the list of the world’s wealthiest individuals in the five-year bull mania that ended in 2008. Suzlon is among those companies whose credibility had dived along with its market-cap as complaints about the poor quality of its wind turbines made global headlines. In April, rating agency CRISIL kept Suzlon on rating watch with negative implications after a big downgrade. This was due to the big delay in fresh infusion of private equity and a ‘sharp deterioration in gearing’. It says that Suzlon also runs large refinancing and funding risks in 2009-10 due to upcoming payment obligations to Martifer and a foreign currency convertible bond.

 

The irony is that better business ethics would have seen Suzlon surfing the global economic downturn, since alternative energy remains a hot business segment because of president Barack Obama’s commitment to explore these options.

-Sucheta Dalal


-- Sucheta Dalal



 



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