Mumbai: Triveni Engineering & Industries Ltd has entered into an agreement with General Electric Co’s oil and gas business to manufacture compressors for the oil and gas industry.
Triveni Engineering will import bare compressors from GE’s US-based facility in Wisconsin and will design and assemble high-speed reciprocating compressors, GE said in a statement.
The deal is for an initial term of five years. The compressors are used in gas lift, gas transmission and storage, the GE statement said.
“We see a buoyant oil and gas market in India in the coming years,” Chairman and Managing Director Dhruv M. Sawhney of Triveni said in the GE statement.
Triveni, which is a sugar manufacturer and has an engineering division that manufactures steam turbines, high-speed gears and water and waste treatment equipment, expects high-speed reciprocating compressor market to be about Rs5 billion.
The partnership will help GE in having a manufacturing base close to customers in India, the statement said.
Almost all Indian and international oil and gas firms are planning extensive investment over the next few years, Riccardo Procacci, country manager for GE Oil & Gas in India, said.
“Besides improving our cost competitiveness, partnering with a local player like Triveni will also improve our pre-sale and post-sale customer support and responsiveness ...a win-win for both GE and our customers” Procacci said.
Shares in Triveni rose 2.45% to Rs117.30 in the Mumbai market.