TPG and Siemens Gamesa announced on Wednesday that they have entered into an agreement, under which TPG will acquire a majority stake in Siemens Gamesa’s onshore wind turbine generator manufacturing business in India and Sri Lanka. 

The transaction is subject to closing conditions and regulatory approvals. Financial details of the investment were not disclosed.

TPG’s investment will be made through TPG Rise Climate, its dedicated climate investing platform, and the transaction will serve as the inaugural investment from its Global South Initiative, a private equity strategy launched in partnership with ALTÉRRA, the world’s largest private investment vehicle for climate finance, to scale climate solutions across the Global South.

MAVCO Investments, a private company 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. 

This partnership solidifies TPG, MAVCO, Siemens Gamesa and Mr. Prashant Jain’s commitment to scale renewable energy solutions across India, Sri Lanka and other global markets. 

Following the close of the transaction, a new independent company will be created to build a best-in-class company for the manufacturing, installation and service of onshore wind turbines, addressing the Indian wind market potential. 

Under the transaction, Siemens Gamesa, which will continue to hold a minority stake in the new company, will transfer approximately 1,000 employees and existing manufacturing infrastructure in India while continuing to exclusively license its intellectual property and technology and developing next generation of products for the new company.

The Board of Directors of the new company will be chaired by Vellayan Subbiah with Prashant Jain serving as the Executive Vice Chairman. Vinod Philip will be the Siemens Gamesa representative on the Board. 

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

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