Adani Enterprises Ltd (AEL) on Tuesday infirmed the stock exchanges about having incorporated a wholly-owned subsidiary company for manufacturing wind turbine generators.

In a filing to BSE, the company said a fully owned subsidiary, Mundra Windtech Limited (MWL) was incorporated on on June 7, 2021.

On the objects and effects of acquisition/incorporation for the acquisition of MWL, it said the company has been incorporated “to carry on business as manufacturers of wind turbine generators and other auxiliaries.

“MWL is incorporated in India and registered with the Registrar of Companies, at Ahmedabad, Gujarat, AEL said.

The move from Adani comes even as the onshore wind energy market in India has struggled, though there have been recent tenders by SECI to inject some momentum. Importantly, the offshore wind energy market, where a lot of attention and focus has shifted in developed markets, has picked a lot of pace, even as India remains a laggard yet. With a relatively tiny 2 GW target for 2022 that is unlikely to be met, and a 30 GW target by 2030, it seems Adani spots an opportunity in the latter. Group firm Adani Green has also returned as an aggressive bidder at wind tenders recently.

A key challenge for onshore in recent years has become access to land for larger projects, since the best locations tend to be restricted to specific states, especially Gujarat, Tamil Nadu, Andhra Pradesh and Karnataka. That has seen many erstwhile strong wind energy proponents shift focus to solar power, even as they sell off their wind energy assets. That solar power prices dropped much faster in a price sensitive market like India pretty much settled the issue for many.

Leading firms in the space like Suzlon may not be too happy about this potential new competitor, considering the deep pockets the Adani Group brings to the table.