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Rolls-Royce sets up Indian arm, to play major role in power generation

Rolls-Royce PLC, the global civil aerospace, defence and energy group, has formed a wholly-owned subsidiary in India.

The Indian arm will help Rolls-Royce to increase its focus on the expanding power generation, particularly in small- and mid-size captive power plants (capacity upto 50 mega-watt).

Rod Williams, managing director of the Indian subsidiary -- Rolls-Royce Energy Systems India Private Limited -- said that the company will have an authorised capital of British pound 150,000. It would have equity and technical partnerships with Indian firms, if required, to set up power generation plants across the country.

It has already invested about British pound 400,000 in India for infrastructure and manpower development.

The company is willing to have financial tie-ups with Indian corporates to build, operate and maintain captive power plants and discussions are on with several companies. The final outcome and business figures would be known by the end of this year, Williams said.

''Until now, we have been meeting the needs of our Indian customers through a liason office. However, with the expanding markets and rising demand in these core sectors, we have decided to expand our operations by having a fully owned subsidiary here,'' he said.

Rolls-Royce has been supplying aircraft engines, diesel engines and gas turbines to Indian firms for the past seven decades and many of these engines are still working in India.

Besides procuring local skilled workforce and equipment parts, the Indian arm of Rolls-Royce would concentrate in manufacturing power generation equipment and gas turbines in collaboration with local partners.

The company will undertake a wide range of activities in its core sectors including design, development, commissioning and servicing of systems utilising Rolls-Royce diesel engines and industrial gas turbines.

The total indigenisation would be above 60 per cent.

It has already established good business relationship with companies like Oil and Natural Gas Corporation, Oil India Limited, the Gas Authority of India Limited and Hindustan Zinc Limited.

ONGC uses Rolls-Royce engines at sea on rigs and for land-based pumping duties. Indian Oil Corporation is one of the most leading operators of Rolls-Royce diesel engines for pipeline pumping and power generation.

Since 1960, Rolls-Royce supplied 230 diesel engines to Indian customers and 200 of these are still working.

According to Peter Dobbs, managing director, Rolls-Royce (diesels), the global market for diesel engines is about pound 26 billion and India's share is about 20 per cent of the total global market.

In fact, the Indian subsidiary would have the potential to export engines and equipment to other Asian countries in future.

The company's strategic focus on India came in the wake of the privatisation of power generation and emphasis on captive power generation by the corporates in order to avoid any power disruption in the production process.

There is a huge gap in demand and supply of power in India and Rolls-Royce would play an important role in this segment.

In India, Rolls-Royce engines are in service with both the Indian Air Force and Indian Navy. The company has close links with Hindustan Aeronautics Limited in Bangalore which has a licensed agreement to produce Rolls-Royce engines. More than 1000 Rolls-Royce engines are in service in India.

UNI

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