The expansion is scheduled to be completed by next June. SEL will also be setting up an innovation centre in Denmark, which will focus on concepts beyond design and development-related R&D such as materials technology, logistics costs and management areas and technology innovations for its turbines.
"We have Rs 500 crore (Rs 5 billion) left over from our IPO and the remaining Rs 1,000 crore (Rs 10 billion) will be raised through debt. There is no plan to tap equity for the next one year," Tulsi R Tanti, chariman and MD, SEL said.
"We have obtained our Board's approval to raise up to Rs 5,000 crore ( Rs 50 billion) through various options such as GDRs, ADRs, FCCBs, but I don't foresee a need for them," he said.
SEL also plans to expand the capacity of its gearbox manufacturing in Belgium from the present 3,300 MW to 4,500 MW by end this fiscal, the investment for which will be firmed up soon.
Tanti said SEL's two manufacturing facilities in the US and China, at investments of $30 million and $60 million respectively, will be operational by September.
Its proposed 1,500 MW wind energy project at Udupi, close to Mangalore port, will be operational by next June, he said adding that domestic expansions include setting up a forging and machining facility at Baroda and a foundry at Coimbatore in Tamil Nadu.
The company also plans to set up a first-of-its-kind rotor-blade testing facility in Asia, at Vadodara, at an investment of Euro six million, again to be funded entirely through internal accruals. Besides, it is increasing its headcount in India from the present 5,500 to 7,500 and overseas from 1,500 to 2,500.
Tanti said company's international business would contribute 60 per cent of the total revenue this fiscal as against 60 per cent of total revenue coming from domestic operations in FY 06.
Company's present plans do not include any inorganic growth strategies, he said. The company will be focusing on emerging European markets such as Portugal, France, Italy and Greece to drive its overseas business.
"While we have no immediate plans to enter the African market, we have finalised plans to tap the high-potential Brazilian market in Latin America," he said.
The company's present order book stands at Rs 3,758 crore (Rs 37.58 billion), of which international orders constitute Rs 2,959 crore (Rs 29.59 billion) and domestic orders constitute Rs 799 crore (Rs 7.99 billion).
"The overall market growth is around 30 per cent and I am confident we will outpace the market's growth in the remaining three quarters," Tanti said.
