Business Today

It's a Breeze

The government's renewable energy goals are helping Inox Wind power move ahead.
twitter-logoManu Kaushik | Print Edition: November 8, 2015
Devansh Jain, Director, Inox Wind.
Devansh Jain, Director, Inox Wind. (Photo: Vivan Mehra)


Renewable energy, especially wind power, is riding a strong tailwind. Ever since the NDA came to power at the Centre, it has emphasised on reducing the dependency on conventional sources of energy and, instead, has worked towards increasing output of renewable power.

And, the focus on non-conventional ways to generate electricity has provided the much-needed fillip to wind energy companies, including Noida-based Inox Wind, which makes wind turbine generators and provides turnkey solutions for wind power projects. It has a robust order book of 1,220 MW as on June 2015, with turnkey projects contributing 60 per cent and equipment supply orders making the rest. Its clients include independent power producers, utilities, public sector units and corporates such as Tata Power, Continuum Wind and CESC.

The company's two units, one at Una, Himachal Pradesh, and the other at Ahmedabad, which has tied up with Austrian wind major AMSC to manufacture 2MW wind turbine generators, has the capacity to produce 800 MW. Once the third unit in Madhya Pradesh starts operations, Inox's annual capacity will be 1,600 MW. It is also focusing on increasing land bank across wind-rich states.

Founded in 2009, Inox has already made significant strides in recent years. Its revenues have grown at a staggering CAGR of 60.35 per cent over the past two years from Rs 1,005 crore in 2012/13 to Rs 2, 558 crore in 2014/15, while net profits have nearly doubled from Rs 148 crore in 2012/13 to Rs 332 crore in 2014/15. Earlier this year, Inox went public with a Rs 1,020-crore IPO that was oversubscribed by 18 times.

Inox now looks into the future with hope. One, the government has set an ambitious target of 60 GW of installed wind energy capacity by 2022, up from 23.8 GW in July 2015. "Inox will introduce newer, technologically advanced products, which yield higher energy at lower costs, thereby increasing the return on investments. It has sufficient land bank for the installation of an aggregate capacity of more than 4,500 MW," says Devansh Jain, Director, Inox Wind. Besides gaining from manufacturing of turbine generators, Inox has the expertise to offer end-to-end solutions.

With renewable energy becoming more viable, the central and state governments are also supporting its production by launching a series of measures. Some measures include accelerated depreciation on wind power assets, generation-based incentives, inclusion of wind power projects as CSR activity and doubling of the National Clean Energy cess. These initiatives will benefit Inox in the years to come.

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