The two firms plan to set up a special-purpose company, Force MTU Power Systems. Force Motors will hold a 51 per cent share in the JV, with Rolls Royce taking 49 per cent.
The JV will produce MTU’s 10- and 12-cylinder Series 1600 engines with power outputs from 400-800 kWm. The first engine is expected to be delivered in summer 2019.
The JV will also build MTU Series 1600 gensets for the Indian and global markets, with gensets supplied to customers in India, Nepal and Sri Lanka branded as ‘Force ” MTU’ while those supplied to the rest of the world will continue to be branded with ‘MTU Onsite Energy’.
Overall, the two firms plan to invest more than INR300 crore (€40m, $49m) in the JV in proportion to their respective stakes.
A dedicated, state-of-the-art manufacturing facility is to be built at Chakan near Pune in Maharashtra state, and will operate as a stand-alone enterprise. The new factory is expected to launch serial production by the third quarter of 2019.
Andreas Schell, Rolls-Royce Power Systems president and CEO, said the JV “opens new opportunities for a bright future with our Series 1600 products”.
“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.
And Prasan Firodia, Force Motors’ managing director, said it was “a matter of great pride and honour for us that Rolls-Royce Power Systems has chosen to partner with Force Motors not only for production of engines but also for production and engineering of the whole genset system”.
He added that the new company was “set to play a pivotal role in bringing to India and making in India cutting-edge, top-of-the-line engines for multiple applications.”