Siemens Energy Revamps Strategy with Wind Unit Sale in India

Siemens Energy has sold 90% of its Indian and Sri Lankan wind turbine business to a TPG-led investor group in a strategic overhaul of its renewables division. The move allows Siemens Gamesa to refocus on core markets and leverage India as a cost-effective supplier, while India retains its key role in global clean energy production.

In a significant move to reshape its global renewables business, Siemens Energy has agreed to sell 90% of its wind turbine operations in India and Sri Lanka. The buyer is a climate-focused investor group led by the sustainable investment arm of private equity giant TPG. This strategic divestment marks a critical pivot for Siemens Energy’s wind division, Siemens Gamesa, which has been grappling with deep operational challenges and fierce market competition.

Despite commanding a 30% market share in India—a booming wind energy market—Siemens Gamesa has struggled to stay profitable. The company cited an intensely fragmented and price-sensitive competitive landscape as a core reason for the sale. “It’s a very fragmented and competitive landscape,” Vinod Philip, Siemens Energy board member overseeing Siemens Gamesa, told Reuters. He emphasized that the decision enables the company to refocus its efforts on other markets where it can be more efficient and profitable.

As part of the transaction, Siemens Energy will transfer around 1,000 employees and two manufacturing facilities in India to the new TPG-led entity. Notably, about 1,200 other local staff members will remain with Siemens Energy, suggesting that while Siemens is stepping back operationally, it isn't fully exiting its footprint in the region. Financial terms of the deal were not disclosed, but the announcement triggered a nearly 4% rise in Siemens Energy’s stock, making it the top gainer on Frankfurt’s blue-chip index on the day of the news.

Beyond the surface of a straightforward asset sale lies a deeper strategic realignment. Siemens Energy aims to transform India from a market it serves into a manufacturing hub for its global supply chain. According to Philip, the new company could become a cost-effective supplier to Siemens Gamesa’s operations worldwide—especially critical as the company works to reduce costs and improve product reliability. This shift not only maintains India’s relevance within Siemens Energy’s long-term plans but could also enhance the country’s role as a global player in renewable energy manufacturing.

Siemens Gamesa has an installation base of nearly 10 gigawatts across India and services more than 7 GW under long-term maintenance agreements. The wind market in India is poised for further growth, with projections estimating an additional 57 GW of capacity to be added by 2032. While Siemens Energy will no longer directly compete in this space, its technology and supply chain will likely continue to play a role through the newly formed company.

At the heart of this strategic reorganization is the urgent need to stabilize Siemens Gamesa’s core onshore wind business. The company has been plagued by technical setbacks, particularly with its newer 4.X and 5.X turbine models. These issues have not only dented financial performance but also shaken customer confidence in key markets. However, the company has recently reintroduced an updated version of the 4.X turbine to the market, and early discussions with European customers have been described as promising.

This sale is part of a broader reckoning across the global wind industry. Many players are facing growing pains as they scale up to meet global climate goals. The sector has been squeezed by rising costs, supply chain disruptions, and the urgent need for more durable, efficient technology. Siemens Energy’s decision to offload a large portion of its Indian operations reflects a broader shift in strategy: one that favors leaner operations, focused investments, and long-term partnerships that align with sustainable growth.

For India, the deal is a double-edged development. While it marks the exit of a major global brand from direct operations, it also signals confidence from international investors in the country’s renewable potential. With the backing of TPG’s climate arm, the newly spun-off entity could accelerate innovation, attract more green capital, and further integrate Indian manufacturing into the global clean energy ecosystem.

Ultimately, this isn’t just a business transaction—it’s a realignment of priorities at a time when the renewable energy industry is undergoing rapid transformation. Siemens Energy’s pivot may well serve as a model for other energy giants recalibrating their approach in a complex, competitive, and fast-evolving global market.