Suzlon Energy, the Indian wind turbine manufacturer, has just reported Rs 437.82 crore net profit for Q4 compared to Rs 360.16 crore a year ago. Normally, you'd think this is pretty good, but worse than expected by analysts, so the stock took a hit. Yet it's the investment plans of the company that are perhaps more eye-catching - they are huge.

Rs 3,300 crore is to be invested during the current fiscal to enhance its wind turbine and gear box manufacturing capacity - 2,500 of which will be in India and the rest in its subsidiary in Belgium, Hansen transmissions. Right now, Suzlon's annual turbine output is 2,700 MW and they believe that will rise to 4,800 MW by the end of 2008.

Meanwhile, Suzlon's bid for Repower AG hangs in the balance. The date to watch is the 24th May when all final bids have to be in. Will Suzlon raise it's offer for Repower?

Will they join forces with Areva?

Will Areva seek to trump Suzlon?

Maybe Suzlon should bow out of this deal - the gain in Repower's manufacturing capacity will be offset with their much lower margins and rightly or wrongly, one senses that the German company would be less willing to work with Suzlon than with Areva. My gut feeling is that they are better off expanding organically and buying key component manufacturers where necessary - the Hansen deal seems to have worked. How about a US tower manufacturer?

The costs of towers has been rising and ownership of a tower manufacturing plant could protect them from any further price increases.