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Force Motors, Rolls-Royce Power tie up to make engines

Pune-based auto firm Force Motors Ltd on Tuesday said it has entered into a non-binding joint venture agreement with Rolls-Royce Power Systems AG to produce engines for power generation and rail application and complete power generation systems, including spare parts, for Indian and global markets.The joint venture with Rolls-Royce will be the company’s first step towards diversifying into the non-auto segment even as it remains steadfast towards its core engine business, managing director Prasan Firodia said in an interview on Tuesday.The joint venture, in which Force Motors will hold a 51% stake and Rolls-Royce the rest, “will give us a global play”, Firodia said, pointing out that it is not just a “contract manufacturing agreement”.The firms will build a new dedicated facility that will make engines for the railway and power generation businesses in India and for global markets. The plant will be operational by the first quarter of fiscal 2018-19. From now until the start of production, the two firms will invest Rs300 crore.

News Source:- http://www.livemint.com/Companies/EWtXHnnn0vbESwRx8OLISO/Force-Motors-ties-up-with-RollsRoyce-Power-Systems-to-form.html