The 20 billion DM (Rs 45,000 crore) German firm has recently opened a shop in the country by acquiring a 51 per cent equity in WMI Power Plant, an Indian company which has been marketing MAN B&W diesel engines in the domestic market. Following the acquisition the joint venture would be renamed as MAN B&W Diesel Power Plant (India) Ltd.

While the new company will undertake turnkey projects for small captive and IPP, the equity in IPPs will be held by the MAN B&W AG. Normally the company picks up around 10 per cent of the equity in such projects, but the decision is based on a case-to-case basis, said HJ Schulte, president, MAN B&W Diesel AG.

There could also be a possibility to set up dieselengine manufacturing facility in India at a later date, if the demand goes beyond 100 units (over 700mw), said Schulte. The joint venture has good prospects in the country as more and more industrial units are planning to set up their own power generation units, he said.

In the past three years, through WMI, the MAN B&W has provided diesel engines to companies such as Larsen & Tourbo, Standard Alkali, Jindal Strips contributing around 300 mw power. During the first year of its operation the joint venture is expected to add up another 200 mw in the market, said Schulte.

While undertaking the EPC contract, it will also provide operation and maintenance services for which the staff will be trained in Germany, he added.

The joint venture will build the brand equity in the Indian market by offering complete power generating solutions for the captive plants and IPPs, he said. The situation arising out of the shortfall of power in the country calls for a serious and increased power generation, he added.

WMIGroup is also engaged in providing solutions in power and material handling. It primary business of designing and manufacturing of cranes for industries such as steel, cement, fertilizers, heavy machine building and ports.