New Delhi: A unit of General Electric Co and India’s Triveni Engineering & Industries have formed a joint venture to manufacture steam turbines in India, the two firms said on Thursday.
The partnership between the diversified Indian firm and GE Oil & Gas will design advanced technology steam turbines in the 30 to 100 megawatts range, and sell to Indian customers as well as export to global markets under the GE brand name.
“Our strategic alliance reflects GE’s continued commitment to India and strengthens our local market presence through technology transfer,” GE India’s president and chief executive John Flannery said at a news conference.
GE Triveni Ltd will be headquartered in Bangalore. GE will exclusively transfer technology and provide R&D support at Triveni’s Bangalore turbine manufacturing facility, the companies said.
The two firms did not disclose the financial terms of the venture, but Triveni said it will hold one extra share in the JV, with both partners having equal board representation. The transaction is expected to be completed in the next few months.
Shares in Triveni Engineering rose nearly 4% on the news. At 1 pm (0730 GMT), the stock was up 1.7% at Rs132.
Earlier this year, a senior official at Triveni had told Reuters the firm was in talks to find a strategic partner for its turbine business and would make an announcement soon.
GE, the world’s biggest maker of jet engines and electricity-producing turbines, aims to boost its growth in the fast-growing Indian economy by developing lower-cost products that will appeal to emerging market customers.
In October last year, it named Flannery as head of its Indian operations, in a test of a new country-specific management style for the largest US conglomerate.
GE’s energy arm has announced plans to set up a wind-turbine-generator plant in southern India, due to start production in the second half of 2010. GE also hopes to build at least one nuclear power plant in India following the 2008 US-India civil nuclear cooperation pact.
“I think, as a mechanism to growing our business in India partnerships are key,” Flannery told reporters, when asked about the likelihood of more joint ventures in the country.