Force Motors’ shares soared over 3 per cent on Tuesday after the automotive company announced a joint venture with luxury automobile brand Rolls-Royce for building power generation systems and engines. The shares of Force Motors Limited, a part of the Firodia Group, ended up 3.32 per cent at Rs 4,223.85 on Tuesday.
Force Motors said that it is looking forward to taking the venture up and running by 2019 and would be able to produce engines not only for the domestic market but also for the global market. The company has entered into a non-binding term sheet with Rolls-Royce Power Systems AG.
“This is basically a joint venture that we are forming with Rolls-Royce for power generation system, and it largely for building engines, which will go into multiple application like power generation and rail business,” Force Motors MD Prasan Firodia told ET Now. “The engines that we produce now with brands like Rolls-Royce will not just be for the Indian market but will also be catered for the global requirement,” he added.
The company also has tie-ups with German luxury car brands BMW and Mercedes-Benz and has been making engines for them.
Force Motors is an integrated automobile company, with expertise in design, development and manufacture of the automotive components, aggregates and vehicles. Its range includes Small Commercial Vehicles, Multi-Utility Vehicles (MUV), Light Commercial Vehicles (LCV), Sports Utility Vehicles (SUV) and Agricultural Tractors.
Force Motors has risen to 90 per cent in the last two years and has gained over 39 per cent in the last one year.