TPG to buy Siemens Gamesa’s wind turbine businesses in India, Sri Lanka

Global alternative asset management firm TPG will buy a majority stake in Siemens Gamesa Renewable Energy’s wind turbine generator businesses in India and Sri Lanka, the companies said in separate statements on Wednesday.

The investment, which will be made through climate investing platform TPG Rise Climate, will also serve as the inaugural funding round for its Global South Initiative—a private equity strategy developed with ALTÉRRA, the world’s largest private investment vehicle for climate finance, according to TPG.

MAVCO Investments, a private firm belonging to select members of the Murugappa family, will also make a significant minority investment alongside TPG, in addition to continued investment from Siemens Gamesa. Prashant Jain, former CEO JSW Energy, will also pick up a minority stake as Climate Change Partner in the venture.

MAVCO Investments, a private firm run by members of Tamil Nadu’s Murugappa family, and former JSW Energy chief executive Prashant Jain will pick up stakes in the new firm, the statement added.

Siemens Gamesa, which has two manufacturing units in Andhra Pradesh and Tamil Nadu, will continue to hold a minority stake in the new company, which will manufacture, install and service onshore wind turbines.

It will also transfer about 1,000 employees and existing manufacturing infrastructure in India, while continuing to exclusively license its intellectual property and technology

“India is and remains an attractive market for wind energy, with significant growth potential. However, after thorough analysis, we have determined that our new partners led by TPG are the optimal owners to harness this potential,” Vinod Philip, a board member of Siemens Energy, said in the statement.

“Siemens Gamesa has built a leadership position in India’s onshore wind market, and we look forward to partnering with them, MAVCO, and Prashant to build on their success,” Ankur Thadani, partner at TPG and head of climate-Asia, said.

“We believe onshore wind will continue to play an increasing role in India’s green energy mix, and this new platform, with Siemens Gamesa’s world-class product manufacturing and service offering and the backing of TPG and MAVCO, will continue to accelerate the delivery of gigawatts of clean power to millions of Indians across the socio-economic spectrum,” Thadani added.

“This partnership with TPG, Siemens Gamesa, and Prashant Jain marks a significant step forward in advancing renewable energy solutions and supporting India’s clean energy ambitions,” Vellayan Subbiah of MAVCO, said, adding that with Siemens Gamesa’s technical expertise and TPG’s global investing experience, the new company is well-positioned to deliver high-performance wind turbine generators.

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, Prashant Jain said, adding, “The need for quality wind turbine generator suppliers in the country will only rise given the demand-supply gap and the criticality of supply in the overall wind supply chain.”

The new company’s board of directors will be chaired by Subbiah of MAVCO, with Prashant Jain serving as executive vice chairman. Philip will be the Siemens Gamesa representative on the board.

Morgan Stanley, Kearney, Deloitte, Alvarez and Marsal, Khaitan and Co., Cyril Amarchand Mangaldas, and Cleary Gottlieb Steen and Hamilton jointly advised TPG, MAVCO, and Prashant Jain.

As part of TPG’s $27 billion global impact investing platform, TPG Rise Climate invests broadly in the climate sector, focusing on building and scaling leading climate solutions in the following thematic areas: clean electrons, clean molecules and materials, and negative emissions.

Siemens Energy employs around 100,000 people worldwide in more than 90 countries and generated revenue of €34.5 billion, or about $37.12 billion, in fiscal year 2024.