L&T to set up super-critical boiler manufacturing JV with Mitsubishi

Larsen & Toubro Ltd (L&T) has announced that the Company and Mitsubishi Heavy Industries Ltd (MHI) have inked a joint venture agreement for setting up a manufacturing facility for super-critical boilers. This follows a Technology Transfer and License Agreement signed recently by the Company and MHI. Super-critical boilers, an integral component of energy efficient, coal-based power plants, will help meet the demand-supply gap for power plant equipment as India ramps up its power generation capability using super-critical technology.

The establishment of the JV represents a favorable meshing of the aspirations of both the Company and MHI. The Company has been scouting for an equipment partner possessing advanced technologies while MHI has been seeking a foothold in power generation operations within India's rapidly growing market.

Manufacturing capability for super-critical boilers integrates into the Company's existing strengths in the power sector. The Company is currently engaged in total 'engineer-procure-construct' contracts for power projects as well as manufacture of complete condensing and feed heating systems for power plants.

The proposed manufacturing JV, with a capital outlay of around Rs 300 crore, will have a product configuration catering to plant capacities ranging between 500 MW to 1000 MW. The JV will have its engineering center in New Delhi. The site for the manufacturing facility will be announced shortly, and manufacturing is expected to commence in the later part of FY 2008-09.

The new Company will handle the full spectrum of activities relating to supercritical pressure boilers, from manufacture and sales to installation and after-sale service.

Source : Equity Bulls

Keywords