Rolls-Royce In Indian JV

Rolls-Royce Power Systems and Pune-based vehicle manufacturer Force Motors have signed an agreement on a joint venture in which Force Motors will hold a 51% stake and and Rolls-Royce Power Systems 49%.
The new joint venture will be named Force MTU Power Systems Pvt. Ltd. and will produce MTU 10- and 12-cylinder Series 1600 units with power outputs from 545 to 1050 HP (400 to 800 KWm).

Besides manufacturing Series 1600 engines, which the company said are particularly suitable for power generation and rail underfloor applications, the JV will also build Series 1600 generator sets for the Indian and global markets.

“This joint venture opens new opportunities for a bright future with our Series 1600 products,” said Andreas Schell, president and CEO of Rolls-Royce Power Systems. “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.

“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.”

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

Overall, the parties said they are investing more than €40 million in the JV in proportion to their respective stakes. The JV will build a dedicated manufacturing facility at Chakan near Pune. The 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 JV will use Force Motors’ expertise to lead localization efforts and aims to achieve consistently high local content without compromising on quality.

The JV 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.

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