Force Motors inks JV pact with Germany's MTU Friedrichshafen

Force Motors today said 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 per cent of total equity shares and the rest 49 per cent 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.

Shares of Force Motors were trading at Rs 2808.95 per scrip, up 0.96 per cent on BSE.