Toshiba Mitsubishi joint venture to invest upto Rs 250 crore in Tumkur plant

Industrial systems integrator Toshiba Mitsubishi-Electric Industrial Systems Corporation (TMEIC), a 50:50 joint venture between the two Japanese electrical equipment giants formed in 2003, is looking to set up its first plant in India in Bangalore by next year, sources with direct knowledge of the development said.

The JV is understood to be going for a major investment drive to overhaul its activities in India. Sources said that TMEIC is all set to invest Rs 100-250 crore to start the first plant under its own banner in Tumkur.

TMEIC currently operates a plant through its subsidiary AEG Power Solutions which it had acquired from European power systems company 3W Power SA in April this year. Work on the project has already started and the plant is set to commence production within a year.

The company has already acquired 15 acres of land in Tumkur and seven more acres will be added soon. It had earlier been scouting for land for the project in Narasapura, though it is reliably learnt that things have not been moving forward in this direction.

According to government sources, TMEIC is the first manufacturing unit to be set up by a Japanese company in Tumkur. The company produces variable frequency drives, motors and advanced automation systems for a range of industrial applications.
Tumkur has been identified by the government of India for a NIMZ and Smart City. The Karnataka government is also planning a Japanese Village with all facilities for Japanese companies and citizens to stay here.

TMEIC had acquired 100 per cent strategic stake for Rs 250 crore in AEG Power Solutions India Pvt Ltd, the Indian subsidiary of Luxembourg-based 3W Power SA on April 28, 2014.

AEG Power Solutions is a global provider of power electronics systems and solutions for industrial power supplies and renewable energy applications.

TMEIC expects revenues from India to grow to $125 million per annum by 2015. AEG Power Systems’ Indian facility, which employs 85 people, is mainly focused on solar inverters manufacturing for the Indian market.

 AEG has an OEM (original equipment manufacturer) pact with Bangalore-based Toyo Denki Power Systems to make 500 kV-10 MW motors. Its 80,000 sq ft production site in Bangalore manufactures products with capacities of 400 MW and above.