Kalyani Group flagship company Bharat Forge has formed a joint venture with Alstom to manufacture power equipment and the JV will invest Rs 2,400 crore to set up a plant at Mundra in Gujarat.
According to sources close to the development, the joint venture -- Alstom Bharat Forge Power -- will establish the largest integrated power equipment manufacturing facility in India, which will include manufacture of technologically advanced turbines and generators.
When contacted, Bharat Forge, Capital Goods Division Chief Operating Officer, Sunil Chaturvedi, confirmed that the company had signed the joint-venture agreements with Alstom but declined to comment on details.
The sources, however, said the plant, spread over 120 acres, will have an annual production capacity of equipment for 5,000 Mw and will be operational by 2013.
Construction of the plant at Mundra will start by January next year, the sources said.
Alstom, the global leader in equipment and services for power, will hold 51 per cent stake in the JV, with the rest by the Indian partner, they added.
The two partners are looking at synergies and leverage from Bharat Forge’s metal-forming capabilities and Alstom’s global power equipment manufacturing expertise.
The sources said the two partners have also agreed to form another JV, Kalyani Alstom Power, in which the Indian group will have majority stake of 51 per cent to manufacturer auxiliary power equipment like condensors and heaters.
