Rolls-Royce Power Systems, which is a part of the Rolls-Royce Group has entered into a joint venture agreement with Indian automaker Force Motors for manufacturing and supply of the high powered MTU 1600 series diesel motors that will be catering to the mega-luxury brand’s global requirements.
The company’s German parent BMW has decided to relocate the MTU 1600 series engines as well as power generator manufacturing unit from Germany owing to manufacturing cost related issues. As per the joint venture that has been signed between Rolls-Royce Power Systems and Pune based Force Motors, India will become the luxury auto giant’s global manufacturing hub for the MTU 1600 series of engines.
In this joint venture, the Indian automaker Force Motors will be holding 51% of the stakes, and the new establishment will be named as the Force MTU Power Systems Pvt. Ltd. The new establishment will be responsible for producing MTU’s 10 and 12 cylinder Series 1600 units which offer power outputs ranging from 545 hp to 1050 hp (400 kWm to 800 kWm). MTU will continue to be the brand name owned by Rolls-Royce Power Systems.
For this new establishment - Force MTU Power Systems Pvt. Ltd, all the required machinery will be shifted from Germany to India for the manufacturing of the MTU 1600 series of engines. This new joint venture will also be creating new job opportunities in India, as the establishment will be employing around 200 Indian employees. These Indian employees will be trained in Germany to acquire the required skills for manufacturing the engines as per Rolls-Royce’s specifications and standards.
The new facility is slated to commence it operations and manufacture the engines in the third quarter of 2019. This new establishment will be getting an investment of 300 crore in the first phase itself. The companies have not revealed the production capacity of this facility. In Germany, the engine production unit has been manufacturing 2,000 engines annually.
The MTU Series 1600 engines are also suitable for power generation and passenger rail applications. The newly formed joint venture will not only be manufacturing the Series 1600 engines, but also make Series 1600 generator sets.
This joint venture will also be responsible for handling all the sales and services of the Series 1600 generator sets in India and its neighboring countries Nepal and Sri Lanka, while Rolls-Royce Power Systems will be handling the sales and service in the rest of the international markets.
While speaking on the development, the president and CEO at Rolls-Royce Power Systems, Andreas Schell said that the company is changing its strategy from delivering to India to ‘Make in India’. The company has found a dependable partner in Force Motors, which has decades of reputation for excellent production quality and experience in manufacturing engines for premium automakers.
The Managing Director at Force Motors, Prasan Firodia said that Rolls-Royce Power Systems has decided to form a partnership with the company not only for manufacturing engines, but also for production and engineering of the whole generator set system. This partnership follows in line with the company’s successful relationships with luxury auto majors Mercedes-Benz and BMW.