Rolls-Royce Opens India Subsidiary in Bangalore
Fri Nov 25, 2005
LONDON (Reuters) - British engine maker Rolls-Royce Plc (RR.L: Quote, Profile, Research) has set up a wholly owned engineering company in Bangalore, India, which will focus on military engines and other projects, it said on Friday.
"The new company will cover the whole range of engineering tasks," Chief Executive John Rose said in a statement.
Rolls plans to have 200 engineers working at the company, Rolls-Royce Operations India Pvt Ltd., by 2007.
The company will manage the growing volume of engineering work that Rolls-Royce is sub-contracting in India, the statement said.
Rolls-Royce has more than 1,000 engines in service in India, mainly reflecting long-term defense programs. It said its three other businesses, civil aerospace, marine and energy, were also represented.
The company is also benefiting from expansion of India's air travel sector.
As part of aircraft engine joint venture International Aero Engines (IAE), Rolls has recently won engine deals from India's Kingfisher Airlines and new low-fares carrier IndiGo worth a combined $760 million to the company.
Kingfisher ordered 30 Airbus planes worth $2 billion this week, adding to a $3 billion deal announced in June.
Indian low-cost airline IndiGo has ordered 100 Airbus planes worth $6 billion at list prices with deliveries set to start in 2006.
The order is the biggest ever received by IAE, which produces the V2500 engine.
Rolls-Royce has a 32.5 percent stake in IAE, as does United Technologies (UTX.N: Quote, Profile, Research) unit Pratt & Whitney. Japanese Aero Engines Corp. holds 23 percent and Germany's MTU Aero Engines (MTXGn.DE: Quote, Profile, Research) has 12 percent.
Shares in Rolls-Royce were up 0.33 percent at 384 pence in line with a FTSE 100 Index up 0.2 percent as of 1108 GMT.
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