Kirloskar Talking To Fuji Too For Transformer Unit

Kirloskar Electric Company Ltd is also negotiating with Fuji Electric for setting up a joint venture to make huge capacity power transformers. It is already in talks with Ansaldo of Italy in this regard.

Kirloskar, a leading manufacturer of electrical engineering equipment, plans to conclude a deal in two months once it reaches an agreement with one of the two.

This is likely make Kirloskar as the fifth major manufacturer of huge capacity transformers after public sector behemoth Bhel, Crompton, Kerala-based TELK and the ailing Karnataka government-owned NGEF. Bhel now virtually rules the transformer market in India besides exporting.

According to highly placed sources in Kirloskar group, while the company is negotiating for a technological transfer tie-up with Fuji Electric Co, it has preferred an equity venture with Ansaldo with which it has recently signed for a 50:50 joint venture.

The joint venture plans to undertake manufacture of transformers of over 100 mva and 400 kv. The sources gave no details of the investment figures which is expected to be substantial.

After finalising on the partner, Kirloskar is also planning to set up a separate unit for this purpose. Although, the group currently makes transformers up to 50 mva, 220 kv at its existing KECL main unit in Bangalore, a new unit is planned to handle large sized transformers.

This will add to Kirloskar's existing list of six manufacturing units to seven. Two of these are located at Malleswaram, Bangalore, which produce medium and large AC and DC machines. Its Hubli centre produces AC motors and generators; while the Peenya set-up near Bangalore manufactures DC machines. The fifth plant at Mysore turns out industrial electronics and factory automation equipment while the sixth unit at Pune, manufactures small motors and generators.

At present, Kirloskar's other activities include manufacture of AC control equipment, industrial electronics, factory automation systems and turnkey electrical projects.

These power transformers are used in industries and power stations and by railways, refineries and ports.

Kirloskar has already a long-term relationship with Fuji Electric to whom it has manufactured and exported its first 3050 KW AC motor last year.

Ansaldo, the $ 3.5 billion leading Italian group, has a joint venture with KECL for entering into power generation, turnkey electrical projects and rail transportation business in India. It has already made a strong presence in India by supplying turbines to Ramagundam and Neyveli power stations and coal-powered boilers for NTPC.