Triveni Engineering to scale upto 330 MW through cooperation with BZD

Triveni Engineering & Industries Ltd on August 16, 2007 has announced that it has signed a cooperation agreement with Beijing BEIZHONG Steam Turbine Generator Co., Ltd ('BZD').

This agreement was signed by Mr. Dhruv M Sawhney, Chairman & Managing Director of the Company with Mr. Qi Jianbo, Managing Director of BZD in presence of senior executives of both the Companies.

Initially, the Company will be distributing and marketing BZD products by offering power solutions upto 330 MW which will consist of steam turbines, alternators, condensing and cooling systems along with electricals and power evacuation systems; the Company will also sell the balance of plant and provide after sales support. The agreement facilitates the Company to enter into Technology Transfers and the Company will work towards these in the future.

BZD, a subsidiary of the state owned Beijing Jingcheng Mechanical & Electrical Holding Co., Ltd. is a technology leader and fourth largest steam turbine manufacturer in the People's Republic of China with products offering power solutions upto 660 MW. The Company sold more than 4000 MW of power generating equipment last year and has already made inroads into Indian market with orders exceeding 1300MW.

The Company currently sells steam turbines upto 30MW and holds a dominant market share within the industrial turbine market in India. The Company has an installed base of over 2200 turbines, with an annual production capacity of 1200MW.

Commenting on the agreement, Mr. Dhruv M Sawhney, Chairman and Managing Director of the Company said, "The signing of this agreement between Triveni and BZD is a momentous event for our turbine business division. It supplements Triveni's product range to encompass the entire industrial turbine market upto 60MW, while also enabling Triveni to enter into the medium sized utility power generating equipment market upto 330MW. The power solutions offered will be efficient and highly cost effective with desired deliveries backed by excellent product support.

Triveni is well known for its prompt product delivery and unmatched after-sales service in engineered-to-order products. This has given Triveni an edge over its competitors both in the domestic as well as overseas markets. Now with this new relationship with BZD - with its vast knowledge and experience of supplying its higher range turbines worldwide-, we will be an effective and formidable combination offering power solutions upto 330 MW range. The Triveni-BZD combination will differentiate itself from other imported turbine suppliers through the support of state-of-the-art infrastructure of Triveni in Bangalore which, in many ways, is unique in India and, also in the global industrial turbine market."

The Government of India's Eleventh Five Year Plan has laid emphasis on rapid expansion of power generation. This arrangement between the Company and BZD will address the 50,000 MW market in the medium sized utility, merchant power, industrial and captive range in next five years.

Shanghai based investment banking firm E J McKay & Co., Inc. advised the Company on the transaction.

Source : Equity Bulls

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