Suzlon Starts Closing Down Overseas Loss-Making Subsidiaries To Get Back In Shape
Suzlon will shut down its wholly owned Brazilian subsidiary SEOB on July 14.
Wind turbine maker Suzlon Ltd. has initiated the process of closing down its loss-making overseas subsidiaries as indicated by the company’s promoters following fourth quarter earnings.
The company will shut down its wholly owned Brazilian subsidiary SEOB on July 14, it said in a notification to the exchanges on Saturday. The decision was prompted “continued financial stress sustained by its operations”, the filing added.
“This decision will not have any direct and material impact on the company”, a Suzlon spokesperson said in an emailed statement. “This is in line with what we have indicated on closing down loss-making companies. We do not share individual country based revenues but the revenues of this subsidiary is less than 1 percent of the total revenue. This move will help cut losses of the company.”
The Brazilian subsidiary was established in 2006 to cater to demand in that market. The company, said in a media statement, that it considered all options before arriving at the decision to file for voluntary liquidation.
The wind major is looking at several options to reduce the Rs 9,900 crore debt on its books. The company expects to garner 40 percent market share in FY18 from 32 percent currently, it said while announcing fourth quarter earnings.