Alstom sees India as equipment hub

Equipment major Alstom plans to make India a global hub for hydro and thermal power plant equipment and plant engineering.

The company is also in the process of establishing a global hub for research and development in India, said Philippe Joubert, executive vice-president.

"Negotiations with potential partners are at an advanced stage and Alstom has already identified the areas of global research that will be carried out by the 200-plus engineers to be employed at Balgalore by the R&D partner," Joubert said.

Market sources said leading IT companies such as Infosys had been approached and that the focus would be on R&D in turbines and boilers.

On hydro electricity, India will be made a global hub for plant production, with manufacturing and engineering capabilities enhanced, he said. The company plans to have 200 people working its hydro business by the end of March this fiscal.

The engineering centre in Delhi is being expanded and strengthened with workforce slated to be doubled to 650 by March 2006.

The office, which has already employed 100 engineers over the last few months, will undertake project work for plants, boilers, steam turbines, gas turbines, controllers, hydro and power conversion in India and abroad.

The work will include mechanical, electrical, environmental and civil engineering.

"The expansion of development activities in India is advancing steadily and we aim to have all projects fully operational by end of 2005," said Charles Soothill, vice-president technology for Alstom Power Turbo-systems and Environment.

Alstom has increased equity by around euro 1.7 billion and reduced debt by euro 1.3 billion in the financial restructuring process. The company saw a 12 per cent dip in sales in the first half of the current fiscal, but hopes to reduce the dip to 5 per cent for the full fiscal, Joubert said.