The Suzlon Energy Crisis after CEO’s Untimely Death 


In 1995, an owner of a small textile company realized that most of his company’s expenses are occupied by electricity bills after raw materials and that is how world’s 5th largest wind turbine supplier was born. 

Suzlon Energy Limited is a multinational wind turbine manufacturer based in Pune, India. It is the largest of its kind in India and fifth largest in the world ranked by MAKE.

suzlon energy
Image Source: BusinessToday

It doesn’t only have its presence in India but also in 17 countries across Asia, Australia, Europe, America and Africa. It is supplier of wind turbines to clients from all over the globe. 

The company offers services such as solar-wind hybrid energy solution provider, Wind Resource Assessment, Wind Park Delivery Process, Land Sourcing and Approvals, Infrastructure Development, Installation & Commissioning / Erection, Testing & Commissioning, Supply Chain Management, and Research and Development. 

Very recently, the former CEO and founder of Suzlon Energy Limited, Tulsi Tanti, passed away of a sudden cardiac arrest while he was travelling from Ahmedabad to Pune on 1st of October 2022. Tulsi Tanti was known as the ‘Windman of India’. 

Tulsi has been ahead of his time in the sustainable energy sector. India is currently seeing a surge in renewable and sustainable energy with big players like Adani and Ambani coming into the scene. But Tulsi Tanti was in the game two decades prior. 

This explains for itself why his company blew up so fast. His futuristic approach and business strategy worked in his favor and he ended up being featured in Forbes’s list of Billionaire Blowups of 2008. 

Tanti has to be one of the most influential personalities of the India. Ever since the untimely demise of the CEO, the company has not managed to hide from the talk of mainstream media. 

On 28th of September, in the Suzlon Press release, the company had announced proposing to make a Rs. 1200 crore right issue of its Equity shares and had filed a letter of offer with BSE Limited, National Stock Exchange of India Limited and the Securities and Exchange Board of India.  

Image source: The Economic Times

The right issue will open on 11th of October and will be closed by 20th of October this year. The company will use the net proceedings from the right issue for repaying or pre-paying outstanding borrowings availed by the company and its subsidiaries and trim its debt as well as for general corporate purposes.  

Earlier this year, Suzlon’s total borrowing stood as Rs. 6,800 crore which led the lenders acquire 35% stake in the company, being paid equity on behalf of loans issued to Suzlon or its subsidiaries. 

The company has issued a statement informing that there will be no change in the event following the death of the CEO, Tulsi Tanti. 

A rights issue is an offering of rights to the existing shareholders of a company that gives them an opportunity to buy additional shares directly from the company at a discounted price rather than buying them in the secondary market.  

The company will issue its 240 crore partly paid-up Equity shares of face value Rs.2 each for cash at a price of Rs.5 per Rights Equity Share to the eligible equity shareholders of the Suzlon Energy Limited. 

On 7th October, Suzlon Energy Limited announced its new chairman and Managing Director, Vinod R Tanti. Vinod Tanti is late Tulsi Tanti’s brother and is appointed by company’s board of directors for the next three years as of now. He will be subjected to the approval of the other shareholders of the next general meeting of the company. 

Managing director of Sun Pharmaceutical Industries, Dilip Shanghvi, who is a 23% stake holder in Suzlon showed his intentions in fully participating the upcoming right issue of the company. 

Dilip Shanghvi bought 23% stake in Suzlon Energy Limited for Rs. 18 billion in 2015.

The Suzlon Energy
Image Source: Asiana Times

The company is seeing ups and downs in its revenue for a very long time now, mostly downs to be fair yet analysts are still having some positive feeling about the company’s future. 

The reason behind that can be more than one. One aspect is India’s growing sustainable energy industry which has seen a rapid increase in growth in 2022 with big investors from all over the world eyeing India. This automatically makes Suzlon a good investment as it has been in the game for a very long time now the other companies being very new to the entire renewable energy situation. 

Another aspect is that even though the company has gone through many losses and the revenue is not currently very promising, the investors are still very positively responding to the company’s requirements at the time of crises. Read more:


Tiasha Debnath.
Tiasha Debnath.
Tiasha believes in writing about what is important rather than what is popular. She also believes that people can formulate social narratives if they want and that they should use their individual platform to be the reason for a change for the good.





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