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| (L-R) Andreas Schell, President and CEO of Rolls-Royce Power
Systems, with Prasan Firodia, MD of Force Motors |
23/1/2018
PUNE: Force
Motors, the Pune-based automotive company, is now ready to foray into the
business of engine manufacturing in partnership with a Rolls-Royce
subsidiary. The company today announced signing an agreement with MTU
Friedrichshafen to domestically produce MTU's renowned 10 and 12-cylinder
Series 1600 units with power outputs from 545 to 1050HP (400 to 800 KWm).
The new joint venture (JV) will be named 'Force MTU Power
Systems Pvt. Ltd.', and Force Motors will hold 51 per cent of total equity
shares while the remaining will be with MTU. The Germany-based arm of
Rolls-Royce Power Systems AG is one of the leading manufacturers of large
diesel engines, propulsion and drive systems for heavy applications such as
rail, land, and defence vehicles along with marine applications.
Overall, the parties are investing more than Rs 300 crore in
the JV in proportion to their respective stakes. "Each party will have
equal rights to appoint directors. Capital contribution will continue in the
ratio of the agreed proportion," said the regulatory filing.
"In Force Motors we have found a reliable partner whose
excellent production quality is proven by decades of experience in building
engines for premium automotive brands," said Andreas Schell, President and
CEO of Rolls-Royce Power Systems in a statement. "Our joint venture
combines the strengths of the two partners: Rolls-Royce Power Systems'
cutting-edge technology in reciprocating off-highway engines and Force Motors'
long-standing experience in top quality manufacturing, with access to the
Indian market. For us, it's the perfect fit."
Plans include building a state-of-the-art, dedicated
manufacturing facility at Chakan, near Pune, which is to operate as a
stand-alone enterprise. The new factory is expected to launch serial production
by the third quarter of 2019. Apart from manufacturing engines, the factory
will also build Series 1600 generator sets for the Indian and global markets.
The latter, built and supplied to customers in India, Nepal and Sri Lanka, will
carry the 'Force - MTU' brand and the JV will handle sales and service side of
things. On the other hand, generator sets to be exported to the rest of the
world will be sold under the name 'MTU Onsite Energy', and Rolls-Royce Power
Systems will handle sales and service. The engines will continue to carry the
brand name MTU.
MTU had launched its Series 1600 engine family back in 2009
and now has thousands of units in service. Renowned as a state-of-the-art
engine with common rail injection, turbocharging and electronic control, it is
well-established in the market for power generation and rail applications.
"Once serial production capabilities for 1600 units have been established
within the Joint Venture, we will have opportunities to add other applications,
engines and power systems to the JV portfolio," added Schell.
Incidentally, Force Motors is no newbie when it comes to
partnering with global brands. "This tie-up comes after our successful
cooperation with Mercedes and BMW and will open up numerous opportunities for
growth and diversification. I see exciting times ahead, since we are set to
play a pivotal role in bringing to India - and making in India cutting-edge -
top-of-the-line engines for multiple applications," said Prasan Firodia, Managing
Director of
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