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Force Motors joins hands with Rolls-Royce Power Systems

Varun Aggarwal Mumbai | Updated on March 20, 2018 Published on March 20, 2018

New venture will make Series 1600 engines and generator sets

Pune-based automobile manufacturer Force Motors and Rolls-Royce Power Systems today signed an agreement for a joint venture, in which Force Motors will hold 51 per cent stake and Rolls-Royce Power Systems the balance.

The joint venture will be named ‘Force MTU Power Systems Pvt Ltd’ and is to produce MTUs 10 and 12-cylinder Series 1600 units with power output from 545 to 1050 HP (400 to 800 KWm).

Series 1,600 engines are suitable for power generation and rail underfloor applications.

Besides manufacturing Series 1600 units, the venture will also build Series 1,600 generator sets for the Indian and global markets.

“ Predominantly, this joint venture will be producing the Series 1600 engine from the Rolls Royce Power Systems universe in India. We will be transferring the entire production line for 1600 engine from Germany to Chakan in Pune under the JV, which would create about 200 jobs at the plant,” Andreas Schell, President and CEO, Rolls-Royce Power Systems, told BusinessLine.

Generator sets built and supplied by the JV to customers in India, Nepal and Sri Lanka will carry the ‘Force - MTU’ brand, while those for the rest of the world will be sold under the name ‘MTU Onsite Energy’. The engines will continue to have the brand MTU.

Overall, the two companies will be investing about ₹300 crore in the joint venture in proportion to their respective stakes.

The Pune facility will be equipped with nearly all core functions and is to operate as a stand-alone enterprise.

The new factory is expected to launch serial production by the third quarter of 2019.

The new venture will handle sales and service of Series 1600 generator sets for end-users in India, Nepal and Sri Lanka territory, while Rolls-Royce Power Systems will handle sales and service in the rest of the world territory.

“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 portfolio,” Schell added.

Prasan Firodia, Managing Director, Force Motors, said: “We expect the JV to generate ₹1,000 crore revenue per year in the initial years.”

Published on March 20, 2018
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