Alternative energy equipment suppliers such as Suzlon are heavily dependent on new installations which have come to a grinding halt. Ideally, the bankers should have insisted on a change in management before anything else. Prior to joining Suzlon in April 2016, he had stints at Reliance Power, Punj Lloyd and NTPC. The business was languishing, mainly because electricity was extremely expensive for businesses and the power grid was plagued with outages. https://www.theindianwire.com/business/list-richest-people-pune-8180 The bigger news was the resignation of its group CEO, JP Chalasani, a veteran of the power sector. The Chairman and Managing Director Tulsi Tanti and his family are staring at the possibility of losing management control. Investors, Sanjiv Bajaj aur COVID-19. NEW DELHI: The Dilip Shanghvi family, founders of Sun Pharma, will acquire a 23% stake in debt-laden Suzlon Energy with a preferential issue of fresh equity of for Rs 1,800 crore, leaving the Tulsi Tanti family with a 24% stake in the wind turbine maker, the company announced late on Friday. While everyone else was petitioning the government to give them power subsidies, Tanti decided to go off-grid. The ultimate superpower, if you think about it, is the power to influence. Days Trial Wind turbine maker Suzlon's founder-Chairman Tulsi Tanti took a steep cut of Rs 1.46 crore in compensation as the company incurred losses last fiscal. In India, public sector bankers are hardly held accountable for their lending decisions. A year ago, Tulsi Tanti, the 58-year-old chairman of the Pune-based wind turbine maker Suzlon, decided to set his ego aside—at the right time—to bring his company back to financial health. In 2008, the sub-prime crash happened, lender generosity thinned and debtors came calling. The management style, he explains, is to seek consensus at work by day and give the impression that he is listening to you. Sharp Insight-rich, Indepth stories across 20+ sectors, Access the exclusive Economic Times stories, Editorial and Expert opinion, Nidhi Tanti's family sojourn to Antarctica: No luxury cruise, lot of emotions, & a travel milestone, As summer rolls in and plans are made to escape the rising temperatures, Suzlon’s. Clearly, this defense does not hold much water because it conveniently ignores the nearly Rs.20 billion in O&M revenue that the company had in FY20. Tulsi Tanti's estimated Net Worth, Salary, Income, Cars, Lifestyles & much more details has been updated below. He brings with him rich experience of power and infrastructure sectors in India. Tanti flew around in his private jet and quite enjoyed the media attention. This. Explaining … Whatever the justification, according to Subramanian, perennial debt restructuring simply sends a negative message. Tanti, according to a veteran private equity professional, is a case of a man who thought he was the messiah of the industry. “The restructuring has worked well only for the promoter. IndusInd Bank Ltd was the banker to the offer. Chiefly, the fall in tariff further affects the viability of projects in the renewables space where IRR has anyway been driven by regulatory incentives like accelerated depreciation and generation-based incentives. Even the lenders would have had to take a huge haircut,” he says. Inciting hatred against a certain community, 15 Before Suzlon Energy, Tulsi Tanti was into a business that … As it is, for the overall wind-power industry, capacity addition has slowed down. Investors and shareholders may find it difficult to trust the company again. Bank, after bank, after bank, has been giving his company loan, after loan, after loan despite numerous defaults and restructuring attempts. As it is, for the overall wind-power industry, capacity addition has slowed down. The company had begun to experience financial difficulties in the early 1990s, due to rising electricity costs. The changed tariff regime was perhaps the least expected and one that hit the company hard. “Besides, the easy availability of finance during 2005-07 and strong global economic growth accentuated that ambition to turn to reality,” he says. Renewable energy has transformed into a mainstream source of energy offering power plant scale solutions, making his experience highly relevant for us. It was also decided that DSA and Suzlon would form 50:50 joint venture for the development of 450 MW wind farms. While founder Tulsi Tanti made a name for himself and his company Suzlon by being one of the first movers in wind energy in India, his bold audacious attempts to catapult the company into a higher orbit ended up dragging it down into an financial crisis, more than once. Like IiAS, SES has also recommended shareholders to vote against the resolutions proposing reappointment of both the directors. They sit on the board with three members of the Tanti family – founder and chairman Tulsi, Vinod and Girish. Through thick, thin and terrible, the Suzlon Energy promoter has displayed the ability to charm banks and retain control. Before Suzlon Energy, Tulsi Tanti was into a business that dealt with textiles which he started and used to run in Gujarat. It sounds even more incredulous as the SBI-led consortium eventually took 60% haircut, the higher end for which Brookfield was negotiating. It is largest energy sector company in India and second largest in Asia. That was in early 2015 and since then Senvion itself has filed for bankruptcy. 54 Clicks View Details. Tanti believed nothing in the industry could change without his knowledge or in some cases would try and push it himself. He started by importing windmills, two of them, when he and his brothers were running the family business of making polyester yarn. Tanti’s need to control his business seems to have affected the professional running of his business too. Merrill Lynch is believed to be one of the advisors to the transaction. Indian-American Dr Raj Iyer has … Merrill Lynch is believed to be one of the advisors to the transaction. Have you read these stories? The old fashioned lalaji in him is very much there,” points out an ex-Suzlon official. Family & Relatives: Father: Not Known: Mother: Not Known: Siblings: Not Known: Relatives: Not Known: Age, Birthday & Horoscope Tulsi Tanti current age years old. While new directors have come on board, IDBI does not have a nominee yet. Wind turbine maker Suzlon's founder-Chairman Tulsi Tanti took a steep cut of Rs 1.46 crore in compensation as the company incurred losses last fiscal. He started his business career pharma in 1981. Green turns redIn the early days, he was celebrated as a green warrior. In 1994, he ordered two wind turbines from Danish manufacturer Vestas, essentially taking his factory off the power grid. Have you read these stories? https://sites.google.com/site/whoamishamehta1/gujarati-entrepreneurs/tulsi-tanti The Chairman and Managing Director Tulsi Tanti and his family are staring at the possibility of losing management control. Perhaps, the beginning of Suzlon’s fall can be traced back to 2005, when finance was freely available and Tanti tapped into that supply for the next two years. 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. Tulsi Tanti: India's 'Wind Man' June 09, 2006. In fact, it was a learning he picked up from his time in the textile industry. You only have to discuss scale with him and he will instantly get carried away,” says the consultant. According to Harshit Kapadia, associate vice president, Elara Capital, Suzlon’s decision to make big ticket acquisitions such as Hansen and REpower was driven by the ambition to be among the top five wind manufacturers globally. He is a well-known name in the field of renewable energy. Tulsi Tanti worked in a textile company run by his family, in the coastal city of Surat. A week after Suzlon’s debt restructuring announcement, the company announced its Q4FY20 numbers where it lost Rs 8.34 billion. The consortium of 18 banks was led by SBI which had an individual exposure of Rs.43 billion. The founder and managing director of Institutional Investor Advisory Services (IIAS) says, “It could always be that they were convinced by the promoter on the prospects of the company by way of contracts in the pipeline. They would also end up with equity in Suzlon at the end of the 20-year period. A recent media report said the Indian operations could be acquired by Alfanar, a conglomerate based in Saudi Arabia. Unfortunately, if the underlying business gets worse instead of better over time, debt ends ups becoming your nemesis. 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 is originally from a place called Rajkot which is located in Gujarat but now he along with his family members puts up in Pune, Maharashtra. Your Reason has been Reported to the admin. Renewable energy has transformed into a mainstream source of energy offering power plant scale solutions, making his experience highly relevant for us. The Shanghvi family will remain a financial investor in Suzlon, while Tulsi Tanti (promoter) will retain management control. Founded by Tulsi Tanti in 1995 Suzlon Energy Limited is a wind turbine supplier having its head-office in Pune, Maharashtra. Earlier, the banker says, Brookfield Asset Management had made an offer to buy a majority stake in Suzlon. These three states are also the ones with the most installed wind power capacity (See: Where the wind blows). It is a vertically integrated wind power company and makes wind turbines, blades, generators, panels and towers in-house. While everyone else was petitioning the government to give them power subsidies, Tanti decided to go off-grid. Jul 15, 2012, 11:06 AM IST Nidhi Tanti, Suzlon Energy’s Vice-President, Business Review Committee and New Business, is the second-generation leader of Suzlon which was started by industry veteran Tulsi Tanti. Skeiron Real Estate is sponsored by the Tanti Family, pioneers in the global renewable energy industry. Promoted InGovern’s Subramanian says the banks should have been more aggressive with the recovery process. It’s been more than a decade of struggled existence as Tanti has found it rather hard to shake off the sins of commission committed during the go-go years of 2005-08. But the recent debt recast, where the bankers decided to back Tanti on generous terms taking 60% haircut on their loans, is baffling for the business case looks bleaker than ever. In 1995, they set up Suzlon, a portmanteau of ‘. With this, Tanti family and Shanghvi ended up with just around 34 per cent stake in total (Tantis 17.4 per cent and Shanghvis 16.5 per cent) against the proposed 59.86 per cent stake. The Suzlon founder seems to have done this pretty well. Setting realistic prices, a faster build out of grid infrastructure, ensuring market liquidity and streamlining land allocation and site development will be crucial to revive auction appetite and accelerate execution of India’s pipeline of wind energy projects”. Tulsi Tanti Blogs, Comments and Archive News on Economictimes.com. If approaching the tribunal looked like a wasted effort, lenders did have other options, other than restructuring. At the time of acquiring the stake in Suzlon, Valia made it clear there was no plan to grow PV Power. But, people involved in the restructuring process at Suzlon say Tanti was never keen on closing the deal. Tulsi Tanti takes Rs 1.46-cr pay cut as Suzlon slips into red. Tulsi Tanti and family hold 58.14 per cent stake in the company. 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. In 2020, the target addition was 2.6 GW, which seems hard to achieve given the washout post COVID-19. Given that the company has already gone through restructuring earlier, Tandon says that another restructuring just delays dealing with the problem. “Tanti has got a sweetheart of a deal. Suzlon Group chairman and managing director Tulsi Tanti said: I am delighted that Ashwani Kumar is joining the Suzlon family. Commenting on his appointment, Suzlon Group Chairman and Managing Director Tulsi Tanti said he is delighted that Ashwani Kumar is joining the Suzlon family. Promoter Tulsi Tanti, who is also the Chairman and Managing Director of Suzlon Energy, through Tanti Holdings Pvt Ltd, is bringing in ₹ 100 crore. What remains is to be paid over 20 years through optionally convertible debentures and compulsorily convertible preference shares (See: Kicking the can down the road). The new directive gave banks the discretion to implement a resolution plan within six months, failing which the stressed account would be dealt at NCLT. Updated: Jan 07, 2021, 12.25 PM IST . Vestas, which had backed the repayment plan, had been kept waiting for nearly ninety days, while Tanti was convincing the lenders that Vestas was undervaluing Suzlon, according to insiders. This inspired me to enter the power sector through renewable energy and I established Suzlon in 1995. Tomorrow is different. 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. “The viability of a project based on a regulatory advantage worried us,” he says. To deal with the energy crisis, Tanti spotted a business opportunity, and founded Suzlon Energy Limited in 1995 with an initial investment of US$600,000. The opinion among many who worked at Suzlon after having worked at other large organizations, is that he is a micromanager and trusts the opinion of a select few – a combination of officials who have worked with him such as Kirti Vagadia, group CFO apart from Tanti’s brothers. Under the joint venture, Arcapita will invest $2 billion to develop a 1,650-mw portfolio of wind farms in Inner Mongolia in China by 2012. Digital Outsourcing, floated in Januray this year, is a subsidiary of You Telecom, in which private equity firm Citigroup Venture Capital International (CVCI) has an 85% stake. In such a background, it would be very optimistic to assume that Suzlon’s existing order book will see either smooth execution or prompt payments by SEBs. The connections he made both at the state and central levels helped him greatly,” he says. Indian-American becomes US Army's first CIO. Jul 15, 2012, 11:06 AM IST “The same night, the brothers will sit together and decide the course of action before it is presented to the rest of the team. The party endsWhen the going was good, Tanti refused to believe that the party would ever end. Suzlon’s plans came unstuck post the 2008 financial crisis as it never regained the momentum to outrun its debt. “He brings with him rich experience of power and infrastructure sectors in India. But a 20-year repayment schedule that has been offered to the company does not support this hypothesis (of improved prospects).”. But, Tanti prevailed. Tanti and family … +Includes DocuBay and TimesPrime Membership worth ₹1499 & ₹999 resp. Tanti could not make the most of the cash that REpower held as the German banks did not give him a free run. A few months later, all the independent directors including bank nominees (five in all) quit the board of Suzlon. Amit Tandon finds it hard to understand why this restructuring deal was done, considering the company’s past record with debt restructuring. 21,082 crore or US$ 3.75 billion, in the year 2011-12 with an impressive year on year growth of 18%. The saviour now and even going forward could be operation and maintenance revenue, which increased to Rs.19.95 billion in FY20 from Rs.19.07 billion in FY19. Both Shanghvi and Valia were then said to have been quite excited about the prospects of renewable energy in India. More importantly, the money would come in handy to reduce Suzlon’s debt, which was now at a whopping Rs.170 billion. They say he worked only towards a settlement with the bankers. Shameless like Fekuchand Chaiwala. “I understand your concern about our investment. “It was fairly well known that access to funding was never an issue. A detailed questionnaire sent to Suzlon Energy did not elicit a response either. In many ways, the nasty surprise came from all quarters – weakness in the economy, the changed tariff regime, high working capital, low margins and high interest costs on account of the leveraged buyout of REpower. Tulsi Tanti built his empire on 'soojh-boojh', loans and one other secret ingredient. “The right thing to do was take the company to NCLT,” he says. On his appointment, Tulsi Tanti, Chairman and Managing Director, Suzlon Group said, “I am delighted that Ashwani Kumar is joining the Suzlon family. Banks have often demonstrated poor judgement not only with respect to assessing earnings durability through cycles, but also pricing in regulatory risks that can practically takedown a business. According to Crisil Research, all-India power demand could be lower by 2%, or ~31 billion units this fiscal because industrial and commercial consumers – who pay 50-100% more and cross-subsidise domestic and agricultural consumers – have been the worst hit by the lockdown. At the time he was managing the family textile business in Surat, a city in western India. Equity has gone with the wind, but debt is eternal at Suzlon. Companies that have found a buyer after going to NCLT are those with a strong asset base. Ben Backwell, CEO, GWEC had then remarked, “Targets alone are simply not enough. Mehta's 2 U.S. … Later renamed Senvion, it was sold for €1 billion to Centrebridge Partners, a private equity group, with the objective of paring down debt. Thus, despite the increase in tendering volume, not only has allocation of projects slowed down, but both under-subscriptions and cancellations of awarded tenders have also increased.” Shortly after Crisil’s report was released, the Ministry of New and Renewable Energy termed the report as “ill founded, factually incorrect and lacking credibility.”, Even as the orders are slowing down and interest in wind-power projects is weakening due to falling return on investment, what if some of the existing orders get cancelled on the grounds that they are no longer viable? InGovern’s Subramanian points to the lack of “noteworthy shareholding in Suzlon.”. 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. 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. Tulsi Tanti Latest Breaking News, Pictures, Videos, and Special Reports from The Economic Times. It was almost a sure shot way of ensuring Suzlon remained with him. 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. The GWEC report says that India’s wind energy capacity can only realistically reach 50 GW by 2022 from 37.5 GW in 2019 (See: Low blade movement). Wind energy has always been on a weak footing in terms of economics, barring government incentives there was never a case for it. By October/November last year, it was obvious “there was nothing left in the company with a value of maximum Rs.15 billion. Suzlon are heavily dependent on new installations which have come to a grinding halt they on! Huge haircut, the company to NCLT are those with a strong asset.! Tanti can ’ t need to shoot webs out of wrists ; smile. 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