Windbrokers

Windbrokers is a professional supplier of used and new wind turbines from 225KW and up. The chosen turbine is that of 250KW with a price of €187.500. From its base in The Netherlands they deliver wind turbines, services and accessories all over the world. The offered turbines are coming from The Netherlands, Germany and Denmark.
Windbrokers buys the wind turbine when it is about 14 years old and then sells them to interested clients in countries all over the world.

The project began with the choice of 2 countries out of 6: India, South Africa, Costa Rica, Mexico, Brazil and China. These countries all had a potential but according to our criteria’s for the macro and the meso analysis, India was the most interesting market.
India is a market with huge potential for wind energy, around and about 45.000MW, and with a fast growing economy.

The main competitors in India are Enercon Ltd (India) which is the third biggest company in India, Vestas, a Danish company, second in India on the market and Suzlon, the leader. But when the potential clients in the customer profile are reached, a market share can be obtained.

The export marketing strategy for Windbrokers to follow is direct exporting because the windmills are shipped from the port of Rotterdam to India. The price of exportation for one windmill is €50.000, which includes the 36% of custom duties that we have to pay to enter into India.

The distribution is structured as following: the mills go from Windbrokers by boat to an agent in India, from the agent the mills go to an Indian electrification company and the final users of the energy will be the rural households.

The energy that is generated by the windmills, which are shipped to India, can be used by our clients to support the rural electrification program of the Indian government. This program exists because even today 65% of the Indian population does not have access to modern electricity so it is a way to provide these groups with sustainable energy. This way the standard of living of these people can be reached and our focus on people is realized. With one windmill of 250 KWh 1825 households can be supplied with energy on a yearly basis.

The number of windmills that will be exported depends heavily on the amount of subsidy that is attained. The profit margin on these windmills is fixed on 10% and therefore we will be guaranteed of profit, with a potential level of subsidies of around €3.935 Million (subvention of 75% of the transport costs excluded) Windbrokers will be able to export 19 windmills to India. With these 19 windmills a profit of €356.250 can be realized.

The promotional policy that is developed is focused on communicating that we want to sell second-hand windmills, help rural households and deliver sustainable products and services. The promotion will be done in the form of a brochure to potential customers in India which might be interested in our mills.

The operational policy explains that the Euro will be used as the main currency for trade, this because in India both the Dollar and the Euro are accepted very well for trading with. The INCOTERM CIF will be used as the term of delivery, because Windbrokers already got experience with CIF and it is the most common form for business between a European company and India. To secure payment a bank certificate is needed either by cash advance and/or sight letter of credit.

The social policy in which the focus is on building lasting relationships with agents in India makes sure that the focus on people and planet are realized and the fixed profit margin of 10% on the sales price ensures the required profit.

Because India is one of the fastest developing economies and the huge potential for wind energy and the realized profit margin this project is feasible.