Toshiba plans JV to make turbines

L&T reportedly in partnership talks with Japanese biggie.

The $63 billion Toshiba Corporation, one of the largest power equipment manufacturers in the world, today confirmed that it would set up a joint venture in India to manufacture turbines for large power plants. Further, the JV will explore bidding for the upcoming mega power projects.

"We are in talks with more than one Indian company to form a joint venture to manufacture turbines and to bid for upcoming major power projects," said Yuzo Kato, managing director of Toshiba India.

Reportedly, the engineering and construction major Larsen & Toubro (L&T) is in advanced stages of discussion with Toshiba for the joint venture.

"It is too early to announce about the partner. The Indian power sector is booming and we foresee major opportunity for us in future," he added on the sidelines of a press meet in Mumbai to launch new generation notebook personal computers, LCDs, TVs, fridge and washing machines.

Toshiba is targetting revenues of over Rs 4,000 crore by 2015, of which a major part will come from the power and industrial sector.

The country plans to add over 78,000 mw capacity in the next five years and over 80,000 mw in the 12th plan. Many Indian and international companies are seeking to take advantage of the big power sector opportunity.

Further, many of these manufacturers will have to set up base here as the government is likely to make domestic manufacturing mandatory for power plant suppliers.

L&T has already floated a joint venture with Mitsubishi Heavy Industries for super-critical boiler plants. The Anil Dhirubhai Ambani Group (ADAG) is also foraying into manufacturing power equipments, according to Anil Ambani, its chairman.

Public sector Bharat Heavy Electricals (BHEL) is the only leading domestic manufacturer of boilers, turbines and generators. It is in the process of increasing its capacity to 20,000 mw by 2012.

Toshiba is planning to set up a facility either in Tamil Nadu or Gujarat to manufacture supercritical steam turbines of upto 1,000 mw capacity, sources said.

A Toshiba official said the investment required for the turbine manufacturing joint venture could be around $200 million.

Toshiba had got an order worth $350 million to supply five 800 mw steam turbine generators for Tata Power's Mundra Ultra Mega Power Project (UMPP) coming up in Gujarat.

Toshiba also supplied 3X173 mw power generation equipments for the Teesta V hydroelectric power project in Sikkim. The company also has another major order at hand, Kato said.

Commenting on Toshiba's plans for digital products, Kato said the company's primary objective was to beef up brand awareness in India, which is comparatively lower than other countries and increase market share. It has appointed actress Vidya Balan as brand ambassador.

The company is targeting more than 10 per cent market share in home appliances and LCDs and more than 15 per cent of the notebook PC market in next three years.

It plans to launch Toshiba Innovation Plazas as a part of its retail expansion plans. Currently, the company operates 30 Toshiba shops which sells notebook PCs in India. Some of the Toshiba shops would be converted into Toshiba Innovation Plazas in near future, he said.