With its German subsidiary REpower coming fully under its control, the world's fifth largest wind turbine maker Suzlon expects to save EUR 200 million in its overall cost by next fiscal.

Mr Tulsi R Tanti CMD of Suzlon Energy said "Nearly 65% of our spends are on components, most of which, come from Europe. But, given the current scenario, we plan to concentrate on the domestic market, as well as China, for components. This will help in reducing our material cost by nearly EUR 100 million in FY 2013 and another similar amount from other heads.”

The cost-saving will be on the back of acquisition of the German wind turbine company REpower, which it recently completed.

Mr Tanti said that "With the successful acquisition of the complete stake in REpower, we see ourselves well-placed in the market. We will be focusing on market positioning, joint procurement and joint technology development for all our current and future projects. REpower, which was otherwise buying components from the European market, will now import it mostly from India.”

Mr Tanti said that Suzlon expects its total expenditure, which includes debt-servicing, fixed costs and material costs, to come down by 200 million euros by the next fiscal.

(Sourced from PTI)