New Delhi: Force Motors Ltd on Tuesday said that it has entered a joint venture agreement with Germany’s MTU Friedrichshafen GmbH, an arm of Rolls-Royce Power Systems AG, to foray into the business of engines.
The purpose is to set up a JV in India for development, manufacture and marketing of engines, engines for power generation, complete power generators and engines for various applications like rail, Force Motors said in a regulatory filing.
Force Motors will hold 51% of total equity shares and the rest 49% will be with MTU, it added. “Each party will have equal rights to appoint directors. Capital contribution will continue in the ratio of the agreed proportion,” the filing said.
Force Motors is mainly into commercial, utility and agricultural vehicles. MTU, on the other hand, is one of the leading manufacturers of large diesel engines, propulsion and drive systems for heavy applications such as rail, land, and defence vehicles along with marine applications.
At 2.23pm, Force Motors shares were trading at Rs2798 per scrip, up 0.57% on BSE, while the Sensex rose 0.20% to 32,989.46 points.