Equipment joint venture
Mitsui Babcock Energy (India) Private Ltd. has entered into a joint venture deal with Indian engineering company Mukand Ltd. to supply coal pulverising equipment to the Indian market. The joint venture will combine Mitsui Babcock`s technology with Mukand`s infrastructure and aims to have a first year turnover of Rs1.23bn ($29m).
The joint venture company, Mukand Babcock, will supply high quality, locally produced coal milling equipment and spares to customers. Currently, a large proportion of milling equipment is imported to India and is therefore expensive. Under the joint venture, Mitsui Babcock`s coal grinding technology will be manufactured at Mukand`s steel foundry facilities, resulting in significant cost savings.
Mukand is the owner of the largest private sector steel plant in India and has business interests in steel plants, machine building and machine tools. Indian coal is abrasive and has a high ash content and there is therefore an urgent need for high quality milling equipment in India to maintain grinding capacity and mill availability.