Spanish wind turbine maker Gamesa Corporacion Tecnologica, with 2011 revenues of 3.03 billion euros, may have entered India only in 2009 but that has not stopped the company from entering the top league in India, installing over 300 MW in 2011-12 and giving market leader Suzlon a run for its money. In an e-mail interview with BT, Gamesa Corp's Chairman and Chief Executive, Jorge Calvet, talks about why Gamesa has succeeded in India and why the country is crucial to Gamesa's global strategy. Excerpts:
Q. Have you performed better than expected in India?
A. The Indian wind energy market is meeting our expectations. A commitment to the development of wind energy in India makes particular sense, not only due to the benefits wind
power generates in environmental terms, but also due to its contribution to the country's energy independence and economic growth.
In just two years, Gamesa has become one of the country's three largest turbine manufacturers, with a market share of 11%. As of March 2012, sales in India accounted for 19% of the total MW Gamesa sold throughout the world.
Q. How crucial is India to Gamesa and why?
A. India plays a crucial role in Gamesa's immediate, medium- and long-term future, and we are confident of its growth prospects, despite the greater volatility of recent months following the enactment of regulatory changes in this market.
We have worked very hard in recent months to establish a robust manufacturing base to address the market's growing demand and to upgrade our factories for the production of new turbine models, such as the G97-2.0 MW, a machine which has met with great success among our customers.
At the same time, we have geared our efforts towards creating a local supply chain to work with us as the company expands - a network of vendors which share the same approach to work and the same standards for product quality and excellence.
Q. The European and American wind energy markets are quite tepid now. Do you think India can make up for that?
A. We believe that the growing competitiveness of wind energy, together with governments' commitments to combating climate change, will lay the foundation for sustained sector growth in the medium and long term: in fact, independent sources predict double-digit growth (10-20%) in new facilities between 2011 and 2015.
In the short term, lower wind demand in mature markets (Europe and the US) is being offset by growth in emerging markets: Asia, Latin America and Africa.
As I have commented, these new markets' commitment to renewable energies is not based on the need to fight climate change abut, rather, on the need to combat structural energy deficits or excessive dependence on a single domestic energy source.
Q. Do you see turbines being developed in Gamesa's R&D centre in India and sold in markets like Europe and the US?
A. One of the keys to competitiveness in this market is to produce locally. The local implementation and development of a local supply chain is not easy, but it represents advantages in market knowledge, optimization of logistics and transportation costs, proximity to customers, greater proximity to parks for operation and services maintenance. Still, we do not rule out selling turbines manufactured in India in other countries in its area of influence.
Q. Will Gamesa go public in India anytime soon?
A. No.
Indian firm Develops Own Wind Turbine Technology
In July last year, a windmill of 700 KW capacity began pumping electricity into the Tamil Nadu grid from Uthumalai, in Tirunelveli district. The windmill's claim to fame lies in the fact that it has been developed by an Indian company, Garuda Vaayu Shakthi Limited.
Only three other companies - Suzlon, WinWinD and Kenersys - own the technology for their turbines, says Vineeth Vijayaraghavan, Editor of the industry newsletter, Panchabuta.com. "Garuda's wind turbines are not just made in India but made for India."
The company is led by a team of home-grown entrepreneurs. Together, N. Srinivasan, P. Chandramouli and I.K. Pillai make a formidable team. Srinivasan is a chartered accountant who earlier headed the wind turbine business at Shriram EPC.
Chandramouli is a mechanical engineer and an IIM-Ahmedabad alumnus. Pillai is an expert in identifying wind sites. Until recently, he was helping wind turbine developers get possession of wind sites and obtain government clearances.
"It took us 18 months to develop the technology for two types of turbines, of 700 KW and 1,700 KW capacity," says Chandramouli. The 700 KW turbine in Uthumalai was the first one sold by Garuda. Tamil Nadu-based PMP Iron & Steel, the customer, is now in talks with the company for a 10 MW wind farm.
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Gamesa Corp's Chairman and Chief Executive Jorge Calvet 
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