The biggest luxurious automobile giant’s subsidiary, Rolls Royce Power Systems, has tied bonds with Indian automobile manufacturer Force Motors over the production of engines rail applications and power generation., the new joint venture will be called as ‘Force MTU Power Systems’.
A report suggested that both Force Motors and Rolls Royce Power Systems has done the initial investment of around Rs 300 Crore in order, to manufacture and transport 10 and 12-cylinder series 1600 engines in Germany to India. Whereas the maximum JV equity is held by Force Motors around 51% and left is by an engine-making subsidiary of Rolls Royce.
Meanwhile, both parties came to terms on producing Series 1600 generators sets for the Indian as well as global markets. The release claimed that the production of Series 1600 units and Series 1600 generators will start by the fall of next year in hand to that the facility will be built in the region of Chakan near to Pune district.
“The JV will use Force Motors’ expertise to lead localization efforts and aims to achieve consistently high local content without compromising on quality,” said a release.
The Indian automobile CEO Abhay Firodia have already tied links with other German automobile companies, with this joint venture, the possibility of global automobile manufacturer tag might fall into the hands of Force Motors.
“We have a large tradition of working with German companies like Mercedes, then BMW and now Rolls Royce,” said MD of Force Motors.
The release concluded by sharing the details of sales in certain countries, which has been divided into both parties depending on their connections. The Power Systems giant will handle the sales and services for several countries except for India, Nepal, and Sri Lanka. Meanwhile, these three territories will be looked after by the Force Motors.