Wind Power Entrepreneur Crashes out of the Forbes Billionaire List

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The Forbes list of fallen billionaires made interesting if somewhat depressing reading today. Among those short of a few billion is Tulsi Tanti, India’s wind power entrepreneur who shot to fame this decade by first taking a 50% share of the domestic Indian wind power market and subsequently became a major player in export markets by undercutting established players with prices 25% lower due to lower labor costs. Suzlon Energy’s 8% share of the US market came to a shuddering halt last year when giant blades on turbines sold to Deere & Co and Edison Mission started to crack and fall off. According to the WTJ 1251 blades had to be recalled at a cost of some $30m. The exact cause of the cracking problem is still not known. The wrong alloy or treating process could be to blame or they may just have been made too thin. Suzlon has tried to buy a German wind power producer to access their superior technology but the firm is struggling to raise the finance as its share price crashes. Which brings us back to Mr Tanti and his personal wealth. As domestic clients grumble about vibration problems and overseas clients cancel orders, the share price has crashed by 90% over the last year, wiping $2.6bn off Mr. Tanti’s $3bn personal wealth assessment according to Forbes. As the saying goes – it’s an ill wind that blows no good – may be the upside of this sorry tale is home grown energy companies like GE will benefit from the conclusion that you get what you pay for.

–Stuart Burns

Comments (2)

  1. LP says:

    This is one of my biggest issues with Indian companies and Indian labor. Being an Indian myself, I can say this.

    If you don’t oversee the quality, the finish and the actual material is significantly inferior to Chinese finished material.

    This is largely because of the culture. We tend to be cheap on the infrastructure investment. Cheap being the key word here. While it may not be prudent to blow you wad on anything, it just as much of crime to under invest.

    Keep in mind this doesn’t not apply to the likes of Mittal. It applies to the people who are born, raised and stay in India.

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