Rolls-Royce Power Systems and Force Motors formed a new joint venture (JV) in which Force Motors will hold a 51 per cent and Rolls-Royce Power Systems a 49 per cent stake. The new JV will be named ‘Force MTU Power Systems Pvt Ltd’ and is to produce MTU’s 10 and 12-cylinder Series 1600 units with power outputs from 545 to 1,050 HP (400 to 800 kWm). The Series 1600 engines are particularly suitable for power generation and rail underfloor applications.
Besides manufacturing Series 1600 units, the JV will also build Series 1600 generator sets for the Indian and global markets. 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 have the brand MTU.
Overall, the parties are investing more than Rs 300 crore (Euro 40 million) in the JV in proportion to their respective stakes. To meet Rolls-Royce Power Systems’ exacting standards, the JV is to build a dedicated state-of-the-art 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 localisation 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 World territory.