Inox Wind and Suzlon Energy, major players in India’s renewable energy industry, especially in wind energy, could face a critical turning point as the Trump administration signals a potential shift toward green tariffs. 

Current Positioning 

Inox Wind, founded in 2009, has emerged as a significant player in the wind energy sector. The company specializes in manufacturing wind turbine generators (WTGs) and features an impressive order book of around 1,200 megawatts (MW). 

With strong partnerships with independent power producers (IPPs) and leading global technology firms, Inox Wind is strategically positioned to thrive in a dynamic and evolving market. 

Suzlon Energy, one of India’s largest renewable energy companies, has encountered various obstacles over the years, including financial strains and challenges in project execution. 

Despite these setbacks, the company continues to maintain a substantial installed capacity in wind energy. Suzlon is currently focused on restructuring its operations and improving its financial health, aiming to strengthen its competitive edge in the market. 

Impact from tariffs 

The potential tariffs and regulations from the Trump administration could pose significant challenges for Inox Wind and Suzlon Energy. Import duties on components might lead to a 10-20 percent increase in costs, putting pressure on profit margins and making it harder to maintain competitive pricing. 

Furthermore, U.S. companies could gain an edge, potentially reducing export opportunities for Indian firms by up to 30 percent. Regulatory uncertainty could also discourage investors, resulting in a 15-25 percent slowdown in project approvals and capital investments. A rise in domestic U.S. production may reduce demand for Indian products by 20-40 percent. 

To mitigate these challenges, both companies may need to invest substantial amounts—potentially upwards of $50 million—in local manufacturing operations, which could divert 10-15 percent of resources away from innovation and growth initiatives. These shifting regulatory conditions present considerable obstacles for Inox Wind and Suzlon Energy in the renewable energy industry. 

Financials 

In its recent financial update for the quarter ending September 2024, Inox Wind Ltd reported revenue from operations of Rs.732 crore, reflecting a 97 percent incline from Rs.371 crore in Q1 FY25. Net profits rose significantly to Rs.90 crore from a net loss of Rs.27 crore in the same period.

In Q2 of FY25, Suzlon Energy Ltd reported revenue from operations of Rs.2,103 crore, reflecting a 48 percent increase from Rs.1,421 crore in Q1 FY25. Net profit inclined 97 percent to Rs.201 crore from Rs.102 crore in the same period. 

Written by – Siddesh S Raskar 

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