TPG, a global alternative asset management company, has agreed to acquire a majority stake in the wind turbine generator business of Siemens Gamesa Reenwable Energy in India and Sri Lanka. Siemens Gamesa is a wind energy subsidiary of Siemens Energy, Germany.
TPG said in a statement Wednesday that the deal was subject to closed conditions and regulatory approvals, but did not disclose financial details of the investment.
MINT reported in May last year that Siemens’ energy company has sold Siemens Games’ Indian wind turbine units to reduce losses and restore its global wind turbine business to profitability in 2026.
TPG Rise Climate, a climate investment platform for global asset managers, will invest in Siemens’ Indian and Sri Lankan businesses through its Global South initiative and launch it with climate fund Alterra to expand climate solutions in the region.
Mavco Investments, with the support of some Murugappa family members, former JSW Energy CEO Prashant Jain will also make minority investments in Siemens Gamesa’s Indian and Sri Lankan businesses.
After the transaction is over, a new independent company will be created.
Siemens Gamesa will hold a minority stake in the new company and transfer approximately 1,000 employees and their manufacturing infrastructure in India. TPG said in a statement that it will also exclusively license its intellectual property and technology when developing products for the new company.
Vinod Philip, a member of Siemens Energy Board, who runs Siemens Games, said India remains an attractive wind energy market with huge growth potential.
“The new company will serve the Indian market more effectively, while also providing a long-term perspective for employees and customers. This ensures the continued support and development of this dynamic market, and Siemens’ Gamesa can focus on other core markets,” Philip said in a statement.
The new company’s board will be chaired by Vellayan Subbiah, who was recently appointed as a full-time director and appointed as executive chairman of Cholamandalam Investment and Finance Company, a non-bank financial company in Murugappa Group. Jain will serve as executive vice chairman of the new entity, and Philip will serve as the board of directors of Siemens Gamesa.
“We believe onshore wind will continue to play an increasing role in India’s green energy mix and this new platform, with Siemens Gamesa’s world-class product manufacturing and service offering, and the backing of TPG and MAVCO will continue to accelerate the delivery of gigawatts of clean power to millions of Indians across the socio-economic spectrum,” said Ankur Thadani, partner and head of climate, Asia, at TPG.
Morgan Stanley, Kearney, Deloitte, Alvarez & Marsal, Khaitan & Co. , Cyril Amarchand Mangaldas and Cleary Gottlieb Steen & Hamilton jointly suggested TPG, Mavco and Jain on the deal.
