Powergear Ltd, a Bangalore based electrical equipment manufacturer for energy sector, has entered into a joint venture with Spanish wind power firm Gestamp Wind Steel to manufacture wind towers near Chennai with an initial investment of INR 150 crore.
The JV company would set up a 20 acre Greenfield manufacturing facility at Sricity a planned integrated business city 60 kilometer away from Chennai. The company expects to start commercial production by the last quarter of the current fiscal year.
The 60:40 JV firm, Gestamp Powergear Windsteel Ltd, in which Gestamp holds a majority stake, is targeting around 400 towers in three years to clock in sales of around INR 500 crore in first three years of operation.
Mr X Durairaj chairman of Powergear Ltd said that “The plant will be fully operational by three years and we are expecting a sales of INR 150 crore revenue in the first year of operation.”
He said that the JV would manufacture 130 towers in the first year of operation, expand it to 250 to 260 towers in the second year and to around 350 to 400 towers by the third year.
Gestamp Wind Steel would provide technology apart from investment, while Powergear would put in its manufacturing capabilities to the operations of the JV. It would supply towers of 1.6 MW, 2.5 MW and 3MW for its customers.
Mr Javier Ignacio Imaz Rubalcaba CEO of Gestamp Wind Steel said that the company was convinced about the market potential for wind energy in India and had been looking for right partner to start joint operations.
The annual wind power market in India is around 2200 MW at present, and is expected to grow to 5000 MW per annum by 2015, according to World Institute of Sustainable Energy. The cumulative installed capacity in the country is currently at 13 Giga Watts and is expected to reach 64 GW by 2020.
Powergear Ltd is involved in the design, fabrication, and installation of electrical equipments catering to international and domestic customers. It has exports to over 21 countries including USA, Japan, Spain, Argentina, Mexico, Saudi Arabia, Abudabi, Oman, Malaysia, Italy, China and Sri Lanka.
(Sourced from BS)
