Toshiba-JSW to Add 6,000 Megawatts to Indian Power Turbine Manufacturing

---

Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Toshiba (OTC:TOSBF) (Tokyo, Japan) and JSW Energy (BSE:533148) (Mumbai, India) plan to manufacture turbines and generators for thermal power projects, and a plant has been commissioned in Chennai with an initial investment of $130 million. This will increase to $160 million by 2014, and could go up to $200 million.

The plant will produce supercritical, highly efficient units with capacities between 500 and 1,000 megawatts (MW) and will reach an annual production capacity of 3,000 MW by the end of the fiscal year. The plant is targeted to double this capacity to 6,000 MW by 2015, with annual sales of $400 million. Initially, the rotor blades for the turbines will be made in Chennai, with other major parts being sourced from Japan.

When the domestic steel industry is able to provide steel for large-scale, heavy-weight forging, Toshiba-JSW expects the steam turbine units to be manufactured using Indian steel.

The first phase of production will go to domestic customers, but subsequent opportunities for sales will be sought in Southeast Asia, the Middle East and Africa.

Tamil Nadu's chief minister, Ms. J Jayalaithaa, said:" India is currently facing a problem of inadequate domestic manufacturing capacity for supercritical turbines and a shortage of power equipment, thereby delaying the implementation of power projects. Given this context, the plant of Toshiba-JSW assumes considerable importance."

JSW Energy Chairman and Managing Director Sajjan Jindal said that the new venture was in line with the conglomerate's strategy to be present in the entire value chain of power business from equipment manufacturing to generation, transmission, distribution and energy trading. Currently, JSW Energy has an operational generating capacity of 2,600 MW and has 540 MW under construction.

Joint ventures among Indian companies are creating more capacity for the turbine manufacturing sector, supplementing the output of state-owned Bharat Heavy Electricals Limited (BSE:500103) (BHEL) (New Delhi).

For related information, see February 14, 2012, article - Alstom Moving Up a Gear in Indian Power Manufacturing Sector.

Coal-fired thermal power projects are expected to meet 60% of annual Indian demand growth of 16,000 MW through 2017.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info'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.