Welspun Corp Wins Order from Existing Customer in North America
Welspun Corp, a leading supplier of green energy products and solutions, has signed an order from an existing customer for an amount equal to the company’s annual sales growth of the last five years. This order from a leading financial services organization signals an important milestone for the company as it continues its transformation from a niche player to a global player.
The customer is a U.S.-based global financial institution and has been a Welspun customer for more than a decade. The company is known for its innovative and effective product solutions. One of its key areas of focus is its green energy division, which offers storage solutions, solar power, and wind farms. The financial services company was one of the first customers to implement Welspun’s storage solutions in 2011. As such, this order from an existing customer is a win-win situation for both parties.
Welspun has signed an order from a leading financial services organization for an amount equal to the company’s annual sales growth in the last five years. The financial services organization is an existing customer with a five-year contract. The contract covers the installation of green energy storage solutions, including batteries and off-grid solutions. The company’s annual sales are in the region of $1 billion and have grown by more than 60% in the last five years.
Welspun’s green energy division is considered a profitable source of revenue for the company. It has grown to become
Welspun Corp (OTC: WELS) is a leading supplier of green energy products and solutions. It was founded in 1998 in Fort Worth, Texas by Dr. William A. Welspun, a former executive of Southwestern Bell. Welspun is best known for its solar panels and wind turbines, but it now invests heavily in other green energy technologies and has made significant strides in the oil and gas sector. Its portfolio now includes solar panels, wind turbines, energy storage solutions, and oil and gas terminals.
Welspun’s Green Energy Division
Green energy is a growing part of the company’s business and the green energy division, which makes up most of the rest of the business unit, has been a source of growth for the company. In 2011, the green energy unit generated sales of $68.3 million, compared with $67.3 million in 2010 and $69.9 million in 2009. The unit’s performance was a factor in Welspun’s recent decision to boost its capital spending and expand its production capacity.
In 2011, the unit added a new product, a 48-megawatt solar power plant, to its product portfolio. In addition, the company inaugurated the first phase of a wind farm in South Dakota. The company also completed a $193 million dollar expansion of its oil and gas production capacity near Plainfield, Indiana, which will allow the company to produce higher-quality fuels.
Key Developments with the Green Energy Division
The growth of the green energy business unit has been a key development in Welspun’s transformation from a niche player to a global player. The unit now ranks third in terms of sales, behind only its energy storage and oil and gas products divisions. The unit has also established itself as a leading supplier of green energy technology. In 2011, the unit won an order from an existing customer for a green energy solution worth $300 million over 10 years. The customer is a U.S. financial services company and is investing the money in a closed-loop energy system that will include storage. The system will be capable of producing energy to power more than 1,000 homes.
In addition to its green energy solutions, Welspun also sells to a wide range of customers in other industries. The company has long been involved in the financial services sector, partnering with Bank of America for more than a decade. In 2011, the company formed a joint venture with Bank of America to sell mortgage-backed securities. This project is expected to generate revenue of $1 billion over the next five years.
Key Developments with Other Business Units
The majority of Welspun’s revenue comes from its energy business unit, which makes up most of the rest of the business unit. The unit accounts for about two-thirds of sales and employs about a quarter of the company’s workforce. The unit, which is headed by a vice president, generates a large portion of the company’s revenue. The unit’s products and services cover a wide range of areas, including solar panels and wind turbines, energy efficiency, and oil and gas storage. Most recently, the unit invested in a wind farm in New Mexico. The investment will provide more than 100 megawatts of electricity to the area.
Company’s Vision and Mission
Welspun’s vision is to be a global leader in the development, manufacture, and sale of advanced sustainable energy solutions. The company’s mission is to be a world leader in the development, manufacturing, and sale of advanced sustainable energy solutions. Welspun’s strategic priorities include maintaining and expanding its leading position in the energy sector, securing future growth, and investing in future business units.
Company’s Strategic Plan
Welspun’s strategic plan is to maintain and strengthen its leading position in the energy sector in order to secure future growth and avoid becoming a niche player. The company’s organizational strategy includes establishing a growth-only culture, balancing investments in existing and new business units, maintaining a healthy work-life balance, and delegating responsibility at every level within the company.
Company’s Financial Performance
For the full year 2012, Welspun’s income was $6.2 million, compared with $6.9 million in 2011, and $2.1 million in 2010. The company’s revenue was $63.3 million, compared with $69.9 million in 2011, and $69.4 million in 2010. Welspun’s debt stood at $35.6 million, compared with $2 million in 2011, and $40.5 million in 2010.
Welspun believes its strategic plan, coupled with its proven track record, gives the company a good chance of sustained profitable growth over the long term. The company’s management believes that it has a strong position in the energy sector and has the resources to withstand any short-term disruption caused by the upcoming power struggle in Europe. With its proven track record, strong position in the energy sector, and attractive financial structure, Welspun has a good chance of securing future growth and securing its future as a major player in the energy sector.