The Kirloskar group has formed a 50:50 joint venture with $3.5-billion Ansaldo of Italy for foray into power generation, turnkey electrical projects and rail transportation. The venture will have an initial equity of Rs three crore and an authorised share capital of Rs 5 crore.
Ansaldo, Italy's leading thermoelectromechanical group, also has interests in energy, transporation and large industrial and environmental system.
The joint venture between Kirloskar Electric Company Ltd and Ansaldo will offer complete electrical systems, including automation, to the steel and paper industries. Meanwhile, Pune-based Kirloskar Brothers Ltd and Ansaldo Energia have siged an agreement for transfer of technology for the manufacture of steam turbines. The turbines, of sizes 3 mw and above, will be manufactured by Kirloskar Brothers for power generation and other industrial applications.
The investment in this venture is expected to be between Rs 10 and 20 crore with an initial downpayment of Rs 5 crore by Kirloskar.
Besides, Kirloskar will pay a royalty fee of four per cent to Ansaldo, according to Sanjay Kirloskar, vice-president of Kirloskar Brothers.
Vijay Kirloskar, chairman of the Rs 2,600-crore Kirloskar group, said Ansaldo has the capability and long experience in engineering besides executing large-scale projects in the field of turnkey electrics and automation, power generation and transportation. The co-operation between the two groups will result in an increased market presence for Ansaldo and substantial growth for the Kirloskar group, he said.
By drawing the latest technology from Ansaldo in the field of process automation, the joint venture expects to compete with other major industry players.
The venture will offer complete electrical systems, including automation, to steel and paper industries
