When Force meets Rolls – something powerful can be expected. Indian Force Motors just inked a pact with Rolls-Royce Power Systems to set up a 49: 51 joint venture facility to produce MTU series engines at an initial investment of over Rs 300 crore.
Pune-based automobile manufacturer Force Motors and Rolls Royce Power Systems on Tuesday signed an agreement to form a joint venture that will produce engines for power generation and rail underfloor applications. Force Motors will hold a 51% stake in the JV with the remaining held by the engine-making subsidiary of Rolls Royce. The new JV that will be called ‘Force MTU Power Systems’ will produce MTU’s renowned 10 and 12-cylinder Series 1600 units. The entire production line for the Series 1600 engines in Germany will be brought to India through this JV with an initial investment of Rs 300 crore by both parties.
The facility will be set 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. Firodia said, “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. Each party will have equal rights to appoint directors. Capital contribution will continue in the ratio of the agreed proportion.”
The JV will use Force Motors’ expertise to lead localisation efforts and aims to achieve consistently high local content without compromising on quality. 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 rail, land, and defence vehicles along with marine applications.