Suzlon Group, which is facing challenging business conditions, would offload a 75 per cent stake in the manufacturing subsidiary to China's Poly LongMa Energy (Dalian) Ltd, a conglomerate focused on conventional and green energy investments.
Both entities have entered into an agreement in this regard.
Suzlon said in a statement on Wednesday that the first tranche of payment of the $28 million has been completed. It further said that It would continue to own a 25 per cent share in the company and "participate in its operations as joint venture partner".
"Thereafter, Poly LongMa Energy (Dalian) Ltd will lead marketing and sales operations in China, with Suzlon acting as technology partner with its existing China portfolio -- including the S66-1.25 MW, S82-1.5 MW and S88-2.1 MW turbines, and manage manufacturing and quality for the venture," it added.
Suzlon is working on a strategy to divest its non-core assets as part of efforts to raise funds and bring down its substantial debt.
On the latest deal, Suzlon Group chairman Tulsi Tanti said it is an important step forward for its future business in China.
"With this joint venture, we monetise an asset we have built up from 2006, and through our partner, Poly LongMa Energy (Dalian) Ltd, maintain our strong presence in the world's largest market, which remains strategically important for us," Mr Tanti said.
He noted that with the combined strength of both groups, the new joint venture would be very well positioned in China and has the potential to explore exports as well.
Poly LongMa Energy chairman Shen Gaohua said the joint venture would set a good example for co-operation between Indian and Chinese enterprises.
"China has the world's largest wind market, by integrating Suzlon's brand name and technology in the world's wind turbine industry with our capital and market resources in China; we believe the new SETL will make brilliant achievements in the market," Mr Gaohua added.