“. But this venture was beset … A few months later, all the independent directors including bank nominees (five in all) quit the board of Suzlon. Promoted Gamesa and Suzlon are two of the world’s … Nidhi Tanti, Suzlon Energy’s Vice-President, Business Review Committee and New Business, is the second-generation leader of Suzlon which was started by industry veteran Tulsi Tanti. Therefore, Dale Carnegie’s 1936 book on cultivating this superpower has a loyal following. Merrill Lynch is believed to be one of the advisors to the transaction. With survival at stake, Tanti chanced upon a solution that was literally blowing in the wind. Suzlon has gone through a loan restructuring in 2010, 2012, 2016 and 2020, which is four times over the past decade. Mr. Tulsi Tanti is a visionary and a great entrepreneur, who was instrumental in founding and turning Suzlon Energy Limited into the fifth biggest wind energy group in the world. Shameless like Fekuchand Chaiwala. Jul 15, 2012, 11:06 AM IST This inspired me to enter the power sector through renewable energy and I established Suzlon in 1995. The old fashioned lalaji in him is very much there,” points out an ex-Suzlon official. With this, Tanti family and Shanghvi ended up with just around 34 per cent stake in total (Tantis 17.4 per cent and Shanghvis 16.5 per cent) against the proposed 59.86 per cent stake. Tanti flew around in his private jet and quite enjoyed the media attention. Tulsi Tanti awarded Global Indian Award: The Canada India Foundation for global entrepreneural vision had awarded Mr. Tulsi Tanti With the Global Indian Award: History. Tulsi is a managing director of Suzlon Energy. He further added that, “Having worked extensively in infrastructure as well as in utility management, Ashwani is the right fit for the organization given the current context of new opportunities for wind and renewable energy in India and all over the … The story today could not have been more different. “The same night, the brothers will sit together and decide the course of action before it is presented to the rest of the team. The new directive gave banks the discretion to implement a resolution plan within six months, failing which the stressed account would be dealt at NCLT. The connections he made both at the state and central levels helped him greatly,” he says. Tanti though is loath to give up control and even if he moves in that direction, it might just be with a wind/solar player where he gets to call the shots. In a debt restructuring exercise concluded recently, it was decided that the company’s debt of Rs.130 billion would be converted into sustainable and unsustainable loans — the former will be Rs.36 billion and would be paid in 10 years at an interest of 9% per annum. In the banker’s opinion, the lenders’ indecisiveness cost them badly – some of the banks agreed with Tanti on valuation and others were unsure. 21,082 crore or US$ 3.75 billion, in the year 2011-12 with an impressive year on year growth of 18%. It had been barely two months since Dilip Shanghvi Family and Associates (DSA) picked up 23% stake in Suzlon Energy at Rs.18 per share in early 2015. https://sites.google.com/site/whoamishamehta1/gujarati-entrepreneurs/tulsi-tanti Given that the company has already gone through restructuring earlier, Tandon says that another restructuring just delays dealing with the problem. Tulsi Tanti Latest Breaking News, Pictures, Videos, and Special Reports from The Economic Times. It is largest energy sector company in India and second largest in Asia. While most players managed to scrape through, the wind energy equipment maker didn’t turn out to be so lucky. The company also has a majority stake in … But that does not address the core issue of sustenance in an industry which is in the doldrums. Tanti could not make the most of the cash that REpower held as the German banks did not give him a free run. The management style, he explains, is to seek consensus at work by day and give the impression that he is listening to you. Tulsi Tanti, a mechanical engineer, was tending to his family textile business in Surat, Gujarat. Tulsi Tanti Latest Breaking News, Pictures, Videos, and Special Reports from The Economic Times. They say he worked only towards a settlement with the bankers. They would also end up with equity in Suzlon at the end of the 20-year period. Includes DocuBay and TimesPrime Membership worth ₹1499 & ₹999 resp. Suzlon Chairman and MD Tulsi Tanti and his family have picked up 49% in Digital Outsourcing, the cable TV subsidiary of broadband company You Telecom. It appears as if the promoters have the bankers on their side,” he says. The total revenues earned are around Rs. A recent media report said the Indian operations could be acquired by Alfanar, a conglomerate based in Saudi Arabia. Perhaps, the beginning of Suzlon’s fall can be traced back to 2005, when finance was freely available and Tanti tapped into that supply for the next two years. Most financial blow-ups are thus the outcome of excess on the part of not just the entrepreneur but also indulgent bankers, guided by their own vested interest. “Having worked … The connections he made both at the state and central levels helped him greatly,” he says. [1] Tanti invested in two wind turbines made by the … “Whichever way the deal is structured, control of the company will remain with me.” That was his brief to Suzlon’s board early last year, when options were being looked at to save his company. Earlier, the banker says, Brookfield Asset Management had made an offer to buy a majority stake in Suzlon. Indian-American becomes US Army's first CIO. Powerful friendsThe Suzlon official quoted earlier has no doubt that Tanti had friends in high places, including in banks and governments. All pages of the Website are subject to our terms and conditions and privacy policy. The three independent directors who resigned were Ravi Uppal (earlier with ABB, L&T and Jindal Steel & Power), Vijaya Sampath (a lawyer who was general counsel to Bharti Group) and Venkataraman Subramanian (an energy sector expert who sits on the boards of Adani Enterprises, Sundaram-Clayton among others). Then, textile businesses were incurring huge power bills and therefore found it hard to spend on other things such as innovation. The saviour now and even going forward could be operation and maintenance revenue, which increased to Rs.19.95 billion in FY20 from Rs.19.07 billion in FY19. In fact, it was a learning he picked up from his time in the textile industry. The Economic Times Digital Payments Forum, Why technology is the only path to sustained growth for MSMEs, Joining the family business? Suzlon’s stock price has lost 99% of its value since listing, on the back of continuous dilution. The business was not in the best of health, mainly due to high operating costs caused by expensive electricity and the frequent power outages. Suzlon adopted a business model wherein clients would be r… Your Reason has been Reported to the admin. Like IiAS, SES has also recommended shareholders to vote against the resolutions proposing reappointment of both the directors. Suzlon has been losing market share to players such as Siemens Gamesa. Having worked extensively in … Confronted in 1994 with escalating power costs, Tulsi Tanti's young textile business was in dire straits.With survival at stake, Tanti chanced upon a solution that was literally blowing in the wind. Tulsi Tanti built his empire on 'soojh-boojh', loans and one other secret ingredient. The new directive gave banks the discretion to implement a resolution plan within six months, failing which the stressed account would be dealt at NCLT. Before Suzlon Energy, Tulsi Tanti was into a business that dealt with textiles which he started and used to run in Gujarat. But Tanti is firmly seated in the driver’s seat. Thus, despite the increase in tendering volume, not only has allocation of projects slowed down, but both under-subscriptions and cancellations of awarded tenders have also increased.” Shortly after Crisil’s report was released, the Ministry of New and Renewable Energy termed the report as “ill founded, factually incorrect and lacking credibility.”, Even as the orders are slowing down and interest in wind-power projects is weakening due to falling return on investment, what if some of the existing orders get cancelled on the grounds that they are no longer viable? Tanti believed nothing in the industry could change without his knowledge or in some cases would try and push it himself. Indian-American becomes US Army's first CIO. Not only has he managed to retain control of the company but has also ensured there is no change in the promoter,” he says. Amit Tandon finds it hard to understand why this restructuring deal was done, considering the company’s past record with debt restructuring. Her unlikely travel companions for the adventure were her parents, Tulsi and Gita Tanti. It was almost a sure shot way of ensuring Suzlon remained with him. It was also decided that DSA and Suzlon would form 50:50 joint venture for the development of 450 MW wind farms. Prior to joining Suzlon in April 2016, he had stints at Reliance Power, Punj Lloyd and NTPC. Suzlon’s plans came unstuck post the 2008 financial crisis as it never regained the momentum to outrun its debt. That was in early 2015 and since then Senvion itself has filed for bankruptcy. Ben Backwell, CEO, GWEC had then remarked, “Targets alone are simply not enough. Suzlon Group chairman and managing director Tulsi Tanti said: I am delighted that Ashwani Kumar is joining the Suzlon family. The wisdom, not to mention the intent of banks, is open to question because they turned down two potential bidders who were in much better shape financially and in terms of management depth. Effectively, taking into account the time value of money, the banks would be taking 60% haircut. The opinion among many who worked at Suzlon after having worked at other large organizations, is that he is a micromanager and trusts the opinion of a select few – a combination of officials who have worked with him such as Kirti Vagadia, group CFO apart from Tanti’s brothers. To read our edgy stories and access our archives, you’ve to subscribe, Suzlon| Renewable Energy| Wind Power| Tulsi Tanti| Dilip Shanghvi| NPA| Debt| SBI| Amit Tandon| IIAS| Shriram Subramanian| InGovern| REpower| Harshit Kapadia| Elara Capital, In 2015, Dilip Shanghvi raised eyebrows when he invested Rs.18 billion in Suzlon. “That was conveyed to the board as well and then we decided to give it another shot,” he adds. In that year, India’s shaky power grid and the rising cost of electricity offset any profits the company would make. There is almost no coverage on the Suzlon stock and concerns remain. Founded by Tulsi Tanti in 1995 Suzlon Energy Limited is a wind turbine supplier having its head-office in Pune, Maharashtra. “Tanti has got a sweetheart of a deal. Tanti believed nothing in the industry could change without his knowledge or in some cases would try and push it himself. A Suzlon official, who worked with Tanti, remembers having that discussion with him just after the company had gone public. These options were deliberated on, says the banker to Suzlon quoted earlier. They sit on the board with three members of the Tanti family – founder and chairman Tulsi, Vinod and Girish. Copyright © 2019 Outlook Business!. That complicates issues since there is no clarity on who will run the company on an operational basis. “Ideally, the bankers should have insisted on a change in management before anything else. Mehta's 2 U.S. … Tanti flew around in his private jet and quite enjoyed the media attention. Confronted in 1994 with escalating power costs, Tulsi Tanti's young textile business was in dire straits. He holds Master of Science degree and in Bachelor of Art/Science from Pune University. “The viability of a project based on a regulatory advantage worried us,” he says. Suzlon was founded by Tulsi Tanti in 1995, when he was working in a family-owned textile company. The changed tariff regime was perhaps the least expected and one that hit the company hard. It appears as if the promoters have the bankers on their side,” he says. “This can prevent an individual from getting on to the boards of other companies for five years. What went wrong at Rana Kapoor's Yes Bank. Renewable energy has transformed into a mainstream source of energy offering power plant scale solutions, making his experience highly relevant for us. While managing the family business, I realised that electricity, as a resource, was the biggest reason for increase in cost of operations. https://sites.google.com/.../home/gujarat-connection/tulsi-tanti In 2020, the target addition was 2.6 GW, which seems hard to achieve given the washout post COVID-19. In India, public sector bankers are hardly held accountable for their lending decisions. Suzlon chairman: "No question" of family exiting firm: Memo - "There is no question of the Tanti family walking away from our great company," Suzlon chairman Tulsi Tanti wrote in an internal memo to senior staff late on Tuesday. https://sites.google.com/.../home/gujarat-connection/tulsi-tanti A Suzlon official, who worked with Tanti, remembers having that discussion with him just after the company had gone public. +Includes DocuBay and TimesPrime Membership worth ₹1499 & ₹999 resp. It is an impressive story, and Tanti has an enviable ability to impress. A banker involved in the deal says there was a sense of worry but Tanti assured the banks and board that Suzlon was worth more. Tandon says the lackluster movement in the stock price post the latest restructuring is an indication that the market does not believe the future will be any different. It has a significant global market share of around 13%. The Suzlon founder seems to have done this pretty well. The first subscribers to the Memorandum were the family members and friends of Tulsi Tanti. Promoter Tulsi Tanti, who is also the Chairman and Managing Director of Suzlon Energy, through Tanti Holdings Pvt Ltd, is bringing in ₹100 crore. Chalasani was one of the key people involved in the completion of the debt restructuring. In fact, states such as Gujarat, Maharashtra and Tamil Nadu saw a fall in industrial power consumption in FY20 compared with FY19. The nominee directors were Biju George from IDBI and Pratima Ram from SBI. With the economy slowing down, power consumption has anyway been falling drastically. Colossus is a Singapore-based … Eyebrows were understandably raised about what Shanghvi, the founder of Sun Pharmaceuticals saw in the heavily indebted wind turbine maker as he, While founder Tulsi Tanti made a name for himself and his company Suzlon by being one of the first movers in wind energy in India, his bold audacious attempts to catapult the company into a higher orbit ended up dragging it down into an financial crisis, more than once. Tulsi Tanti was born on 2nd February 1958 in Rajkot, he is a famous businessman of India. If approaching the tribunal looked like a wasted effort, lenders did have other options, other than restructuring. He brings with him rich experience of power and infrastructure sectors in India. MUMBAI: ‘Wind man’ Tulsi Tanti’s Colossus Holdings has formed a joint venture with Bahrain-based Arcapita Bank to buy Chinese wind energy farms specialist Honiton Energy Holdings for about $500 million, sources have said. Whatever the justification, according to Subramanian, perennial debt restructuring simply sends a negative message. By October/November last year, it was obvious “there was nothing left in the company with a value of maximum Rs.15 billion. Suzlon itself plays it up in its investor presentation as “Stable service revenue insulated from business cycles”. The Chairman and Managing Director Tulsi Tanti and his family are staring at the possibility of losing management control. For a strange reason, Europe has turned out to be some kind of acquisition graveyard for many Indian companies. Wind turbine maker Suzlon's founder-Chairman Tulsi Tanti took a steep cut of Rs 1.46 crore in compensation as the company incurred losses last fiscal. “The restructuring has worked well only for the promoter. In fact, it was a learning he picked up from his time in the textile industry. “It was said in a very calm and composed way. Be it Bharat Forge with CDP, Dr. Reddy’s with Betapharm, Tata Tea with Tetley, Tata Steel with Corus or Havells with Sylvania or the acquisition of Hansen and REpower by Suzlon. Tulsi Tanti was primarily in the textile business and was introduced to wind energy through a wind power project that he had commissioned for his textile factory. Through thick, thin and terrible, the Suzlon Energy promoter has displayed the ability to charm banks and retain control. Strangely, on the contrary, there is no incentive for good governance and for taking hard decisions to ensure a clean banking system. The business was languishing, mainly because electricity was extremely expensive for businesses and the power grid was plagued with outages. In 2020, the target addition was 2.6 GW, which seems hard to achieve given the washout post COVID-19. The company’s spread is all around the globe including Asia, Australia, Europe, Africa, South America and North America. Suzlon Group chairman and managing director Tulsi Tanti said: I am delighted that Ashwani Kumar is joining the Suzlon family. You only have to discuss scale with him and he will instantly get carried away,” says the consultant. The three independent directors who resigned were Ravi Uppal (earlier with ABB, L&T and Jindal Steel & Power), Vijaya Sampath (a lawyer who was general counsel to Bharti Group) and Venkataraman Subramanian (an energy sector expert who sits on the boards of Adani Enterprises, Sundaram-Clayton among others). The S111 is a technologically advanced product of the S88 and S97 2.1 MW family. He obviously knew more than we did.”. Inciting hatred against a certain community, 15 He is originally from a place called Rajkot which is located in Gujarat but now he along with his family members puts up in Pune, Maharashtra. “. 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