Rolls-Royce Power Systems today inked a pact with Force Motors to set up a 49: 51 joint venture facility to produce MTU series engines at an initial investment of over Rs 300 crore. The joint venture will be executed between Force Motors and Germany's MTU Friedrichshafen, which is an arm of Rolls-Royce Power Systems AG, and will is to make a foray into the business of engines.
Force Motors will hold 51 percent equity and the rest 49 percent will be with MTU. `The proposed facility, to come up near Force Motors' plant in Pune, is expected to start production by the end of next year, Force Motors managing director Prasan Firodia said while announcing the joint venture here today.
At present, these multi-application engines are being produced at Rolls-Royce Power Systems manufacturing facility in Germany. Besides, the joint venture will also build the 1600 series generators for the domestic and global markets.
"This joint venture opens new opportunities for our series 1600 products....Once serial production capability for the 1600 engines have been established within the joint venture, we will have opportunities to add other applications, engines and power systems to the joint venture portfolio," president and chief executive of Rolls-Royce Power Systems, Andreas Schell said.
The new company called Force MTU Power Systems will handle sales and service of 1600 series generators for end- users in India, Nepal and Sri Lanka, while Rolls-Royce Power Systems will handle sales and service for the rest of the global markets.
"This tie-up will open up numerous opportunities for growth and diversification. I see exciting times ahead since we are set to play a vital role in bringing to India and making in India cutting edge engines for multiple applications," Firodia said. "Each party will have equal rights to appoint directors. Capital contribution will continue in the ratio of the agreed proportion," the company said.
Force Motors is mainly into commercial, utility and agricultural vehicles. MTU, on the other hand, is one of the leading manufacturers of large diesel engines, propulsion and drive systems for heavy applications such as in rail, land, and defence vehicles along with marine applications.
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