Friday, 23 March 2018

Rolls-Royce Power Systems and Force Motors sign JV for engines and systems



Rolls-Royce Power Systems and Pune-based vehicle manufacturer Force Motors signed an agreement on a joint venture in which Force Motors will hold a 51% and Rolls-Royce Power Systems a 49% stake.

The new joint venture will be named ‘Force MTU Power Systems Pvt. Ltd.’ and is to produce MTU’s renowned 10 and 12-cylinder Series 1600 units with power outputs from 545 to 1050 HP (400 to 800 KWm). 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 40 million euros (Rs. 300 crores) in the JV in proportion to their respective stakes. To meet Rolls-Royce Power System’s exacting standards, the JV is to build a state-of-the-art, 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.

MTU launched its Series 1600 engine family 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.



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 Rest of World territory. 

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

“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,” said Mr. Schell.

Mr. Prasan Firodia, Managing Director of Force Motors, said: “It’s a matter of great pride and honor for us that Rolls-Royce Power Systems has chosen to partner Force Motors not only for production of engines but also for production and engineering of the whole genset system. 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.”

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