To set up facility near Chennai in partnership with Gestamp Wind Steel.
Powergear, a Bangalore-based electrical equipment manufacturer for energy sector, has entered into a joint venture with Spanish wind power firm Gestamp Wind Steel to manufacture wind towers near Chennai with an initial investment of Rs 150 crore.
The JV company would set up a 20-acre greenfield manufacturing facility at Sricity, a planned integrated business city 60 km away from Chennai.
The company expects to start commercial production by the last quarter of the current fiscal year. The 60:40 JV firm, Gestamp Powergear Windsteel Ltd, in which Gestamp holds a majority stake, is targeting around 400 towers in three years to clock in sales of around Rs 500 crore in first three years of operation.
“The plant will be fully operational by three years and we are expecting a sales of Rs 150 crore revenue in the first year of operation,” said X Durairaj, chairman, Powergear Ltd.
He said that the JV would manufacture 130 towers in the first year of operation, expand it to 250-260 towers in the second year and to around 350 to 400 towers by the third year.
Gestamp Wind Steel would provide technology apart from investment, while Powergear would put in its manufacturing capabilities to the operations of the JV, he added. It would supply towers of 1.6 MW, 2.5 MW and 3MW for its customers.
Javier Ignacio Imaz Rubalcaba, CEO, Gestamp Wind Steel, said the company was convinced about the market potential for wind energy in India and had been looking for right partner to start joint operations.
The annual wind power market in India is around 2200 MW at present, and is expected to grow to 5000 MW per annum by 2015, according to World Institute of Sustainable Energy. The cumulative installed capacity in the country is currently at 13 Giga Watts and is expected to reach 64 GW by 2020, according to reports.
Powergear Ltd is involved in the design, fabrication, and installation of electrical equipments catering to international and domestic customers. It has exports to over 21 countries including USA, Japan, Spain, Argentina, Mexico, Saudi Arabia, Abudabi, Oman, Malaysia, Italy, China and Sri Lanka.
Gestamp Wind Steel is a part of Gestamp Corporation, which is focused on steel, automotive components and renewable energy industries. Its wholly owned subsidiary, Gestamp Automotive India and solar business firm Gestamp Solar, are executing various projects in India at present.
