Rolls Royce Power Systems has tied up with Force Motors to shift the manufacturing base of an engine series for power generation from Germany to India, and thereby reduce costs, reports Moneycontrol. Both the companies have signed an agreement to set up a joint venture, which will reportedly oversee the setting up of a plant at Chakan, Pune, that will be operational by the end of next year.
 
The manufacturing plant will be built using materials imported from the Germany plant, although an investment of Rs 300 crore in the first phase has been earmarked for the venture. The investment will be made in respect of the stakes held by each company in the JV, which is 51 per cent owned by the Indian company and the rest by the German company, the report said.
 
Further, the report said that the companies are committed to manufacture MTU range of 10 and 12 cylinder Series 1600 with power outputs from 545 to 1050 hp. These engines are suitable for power generation and rail underfloor applications.
 
Other than exporting units back to Rolls Royce in Germany for supplies to Europe and US, the JV company will also look after the domestic and markets of neighbouring countries such as Sri Lanka and Nepal.
 
"We are signing this JV after being a year in negotiations. We will duplicate the manufacturing and the processes. India will be the only manufacturing base for this engine for Rolls Royce," Prasan Firodia, managing director, Force Motors told Moneycontrol.
 
The plant will reportedly employ 200 people although the initial capacity of the plant has not been revealed.