Companies with deep pockets will mull over acquiring market share by opting for organic and inorganic growth, hinted JP Chalasani, strategic advisor, Suzlon Group, during a webinar organised by NMIMS-The Free Press Journal in association with Tata Power.
Chalasani stated, “I see consolidation will happen across the sector.” Citing a report, he elaborated, “In the next eight years, globally there will be three OEMs who will enjoy 90 per cent of the market share.” He believed that this will be driven by the pressure to become efficient and adopt cost-cutting measures. “Therefore, too many players cannot survive. This will come as a huge opportunity for companies who come with deep pockets for consolidation.”
Commenting on ‘Make in India’, Chalasani stressed that the wind sector meets the criteria of Make in India. Wind power accounts for nearly 10 per cent of India's total installed power generation capacity. “India can actually become a hub for exports not just for wind turbines but also for component manufacturing. There is a huge amount of capacity there. As far as the wind sector is concerned it was always made in India. “We should encourage more exports. However, in the case of solar, there is a set of challenges.” However, Chalasani, former group CEO of Suzlon, and currently advisor to the same company added that if the country is mulling on becoming self-reliant, then the industry will work towards achieving it.Meanwhile, commenting on growth for renewables, says Chalasani, the way forward for renewables — solar and wind — will be joining forces rather than becoming rivals. “Solar alone and wind alone cannot sustain on a long-term basis. Both have to marry. It has to be wind plus solar.” In the case of achieving the 175 GWs target by the year 2022, Chalasani has personal reservations about it. He hinted that the government will be short on meeting the target.
