Indian auto maker Force Motors has entered a non-binding term sheet with Rolls Royce Power Systems AG to form an Indian joint venture company for producing engines specific for power generation and rail applications, the company confirmed in a BSE filing. This also includes the associated spare parts for both Indian and global markets. Force Motors is planning to build a dedicated facility under this joint venture with Rolls Royce at its existing premises at Chakan, Pune. The value of this deal and the investment required to set this facility is still not known.
Rolls-Royce Power Systems AG specializes in large diesel engines and propulsion systems and distributed power generation plants. Headquartered in Friedrichshafen, Germany. On the other hand Force Motors is a fully integrated automobile company with expertise in design, engine development and manufacturing of the full spectrum of automotive components and vehicles. The company also builds engines for companies like BMW.
Force Motors claims that in last five decades it has partnered with leading automotive companies and the latest being Rolls-Royce. It has already developed expertise in-house that will allow it to design, develop and manufacture automobiles, sub-systems, engines and components. The company also has a sizeable presence in the Middle East, Asia, Latin America and Africa.
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