An investor group led by private equity firm TPG has agreed to acquire a 90% stake in the Indian and Sri Lankan wind turbine business of Germany’s Siemens Energy.
The PE firm will make the investment via TPG Rise Climate, its climate investing vehicle. The investor group also includes former JSW Energy CEO Prashant Jain and MAVCO Investments, a private firm of some members of the Murugappa group family. Siemens Gamesa, the wind power subsidiary of Siemens Energy, will retain a 10% stake in the business.
Siemens Energy didn’t disclose the financial terms of the transaction, which is subject to regulatory approvals.
It said the deal allows Siemens Gamesa to shift its strategic focus to other core markets.
Following the close of the transaction, a new independent company will be created for the manufacturing, installation, and service of onshore wind turbines. Siemens Gamesa will transfer about 1,000 employees and two manufacturing plants in India to the new entity.
“The wind industry is at an inflection point in India, given the government’s renewable energy mandate and the need to meet round-the-clock power demand. The need for quality wind turbine generator suppliers will only rise, given the demand-supply gap,” said Jain, who will executive vice chairman of the new entity.
The board of the new company will be headed by Murugappa group’s Vellayan Subbiah. Vinod Philip, member of the board of Siemens Energy responsible for Siemens Gamesa, will be its representative on the new company’s board.
Siemens Gamesa currently holds a market share of about 30% in India. It has a cumulative installation base of almost 10 GW and provides service to a fleet of more than 7 GW under long-term agreements in the country.
The German company also said that the Design Center activities of Siemens Gamesa’s technology function in India, which employs about 700 employees, plus another 500 employees will not be part of this transaction and will remain within the global wind power business of Siemens Energy.
Siemens Energy employs around 100,000 people worldwide in more than 90 countries and generated revenue of €34.5 billion in the fiscal year 2024.
As of 2024-end, TPG had global assets under management of $246 billion, with over 1,900 employees located in 29 offices. TPG Rise Climate is the PE firm’s $27-billion climate investing platform, with dedicated pools of capital across private equity, transition infrastructure, and the Global South Initiative to scale climate solutions.
TPG, MAVCO, and Jain were jointly advised by Morgan Stanley, Kearney, Deloitte, Alvarez & Marsal, Khaitan & Co., Cyril Amarchand Mangaldas, and Cleary Gottlieb Steen & Hamilton.