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Mitsubishi Heavy Industries to Establish Mitsubishi Power Systems India
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Written by Vivek   
Tuesday, 01 November 2011

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Mumbai: Mitsubishi Heavy Industries, Ltd. (MHI) will establish Mitsubishi Power Systems India Private Limited (MPS India) to serve as regional headquarters overseeing the company's power systems business in India. MHI aims to further enhance its response to the needs of India's rapidly growing power generation market and to expand orders from India for its power systems products, including gas turbine combined cycle (GTCC) power generation plant and its components.

MPS India will initially be capitalized at 49.9 million rupees (approx. US$1 million), with plans calling for expansion to near US$10 million by 2013, when the company is slated to have full-scale EPC (engineering, procurement and construction) capabilities.

Operations will get under way with 100 employees. Masayuki Kubo, formerly General Manager of the Power Systems Business Development & Strategy Planning Department at MHI, will serve as company president.

Bases for engineering, administration and sales & marketing will be located in Bangalore and New Delhi. MPS India will formulate regional business strategies and oversee business involving the entire spectrum of power systems and related products, centered on GTCC, from marketing, construction and installation to provision of after-sale services.

MPS India is being created through separation of the power systems business unit of Mitsubishi Heavy Industries India Private Ltd. (MHII); the unit's functions and operational structures will also be strengthened in tandem with the transformation.

Recently, natural gas supplies have been increasing in India, mainly as a result of gas field development in the Bay of Bengal and expansion of LNG terminals. As supplies increase, plans are being actively promoted to construct GTCC power plants, and the establishment of MPS India falls in line with this emerging trend.

MHI has already established two joint venture companies with Larsen & Toubro Limited (L&T), India's largest construction and heavy machinery company, to accommodate the country's sharply expanding demand for coal-fired power plants. The two JVs, established in 2007 to market and manufacture supercritical pressure boilers and steam turbines/generators, respectively, have already achieved solid track records. MPS India is aimed at further nurturing India's power generation market leveraging the knowhow acquired through the JVs with L&T. The new company will also support management of the two JVs.

MPS India will be MHI's fourth regional base to oversee power systems business, following the creation of corresponding bases in the U.S., Europe and Southeast Asia. After establishment of its newest base, going forward MHI will further strengthen its marketing activities to accommodate India's rapidly growing power demand.

 
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