Global alternative asset management firm TPG has acquired a majority stake in Siemens Gamesa’s onshore wind turbine manufacturing business in India and Sri Lanka.

Following the transaction, a new independent company will be established to build a business to manufacture, install, and service onshore wind turbines to capitalize on India’s wind market potential.

Siemens Gamesa will divest 90% of its wind business in India and Sri Lanka, retaining a 10% stake in the transferred business. It will transfer approximately 1,000 employees and the existing manufacturing infrastructure in India while continuing to exclusively license its intellectual property and technology and developing the new company’s next generation of products.

MAVCO Investments, a private company belonging to select members of the Murugappa family, will make a significant minority investment alongside TPG.

Prashant Jain, the former CEO of JSW Energy, will also acquire a minority stake in the venture as a Climate Change Partner.

TPG’s investment will be made through TPG Rise Climate, its dedicated climate investing platform.

The transaction will serve as the inaugural investment from TGP’s Global South Initiative, a private equity strategy launched in partnership with the world’s largest private investment vehicle for climate finance, ALTÉRRA.

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

In 2023, Siemens Gamesa received approval by the minority shareholders for a capital reduction for the remaining 2.21% of shares not held by Siemens Energy, leading to the company’s full integration.

Siemens Gamesa currently holds a 30% market share in the wind turbine industry. The share is supported by a manufacturing and supply chain base in India. The company has a cumulative installation base of nearly 10 GW and provides services to more than 7 GW of portfolios under long-term agreements.