Aggreko to Invest $22 Million in Indian Operations to Step Up Indian Temporary Power Solutions

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Aggreko plc (LSE:AGK) (Glasgow, Scotland), a leading provider of temporary power solutions across the world, is planning to invest about $22 million in India by 2011 to augment the company's temporary power services. With power requirements in the country on the rise and power being rationed, the temporary power market has been valued at $122 million per year.

The company is planning to set up regional service centers in India. Aggreko's Indian arm, Aggreko Energy Rentals India Private Limited (Pune, Maharashtra) will be executing the ventures. Work has since commenced on a service center and a depot in the southern Indian city of Chennai in Tamil Nadu. The facilities will be functional by September 2010.

Similarly, three other depots are scheduled to begin operations by 2011, including those in Kolkata and New Delhi. Aggreko began operating in India with its first depot at Wagholi in Pune in September 2009. The facility required an estimated investment of $6.57 million and occurred after Aggreko obtained the power rental business of Cummins India Limited (BSE:500480) (Pune).

Looking primarily to serve the oil and gas, shipping, mining, process industries, sports, construction and infrastructure sectors, Aggreko will focus on generating gas-fired power, which is reported to be 50% less costly than diesel-based energy.

In India, Aggreko operates a fleet of 132 generators with capacities ranging from 65 kilowatts to 1.1 megawatts (MW), representing a total of capacity of 120 MW. Plans are in place to augment capacity to 180 MW by the end of this year, of which about 15 MW will be gas-based.

The company's present business operations involve renting out the fleet of diesel- and gas-based generators that are already available. Aggreko is also considering bidding for projects where it can provide an integrated 24/7, complete rental power solution on a larger scale. Aggreko is aiming to obtain a 150-MW rental deal from a state utility, discussion of which is under way.

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.