oshiba Corp announced that it has agreed with Jindal South West Group (JSW, based in Mumbai, India) to establish a joint venture specializing in the production and the distribution of equipment for thermal power plants.

Toshiba will enter the Indian market in earnest, where demand for electricity is rapidly increasing.

The joint company will be established in June 2008, and the production is scheduled to begin in September 2009. The new company plans to design, manufacture and sell highly-efficient, large-scale (500,000-1,000,000kW) super-critical steam turbines and generators as well as provide various services for these products. Toshiba’s investment ratio is 75% under the agreement.

Toshiba and JSW are now deciding the location of the plant and seeking a site of roughly 400,000m2. The companies will make a total investment of US$250 billion (about ¥27.5 billion) in the construction of the plant and the manufacturing equipment.

The two parties will launch production lines in series, while Toshiba’s Keihin Operations in Yokohama complements the new plant’s manufacturing process in the beginning. The new plant reportedly aims at an independent production scale of 3,000,000kW per year.

According to the Eleventh and Twelfth Five-Year National Electricity Plans published by the Indian government, the Indian power generation equipment market is expected to see demand growth of 15-16GW per year for the next decade. Coal-fired thermal power stations will account for approximately 60% of the growth.

As the rapid increase in demand for the equipment is outpacing the supply, Toshiba will enter the Indian market by building a new plant there. Toshiba, already the global leader in the market for super-critical coal-fired thermal stations, plans to employ cutting-edge technologies at the new plant and strategically make use of the plant as a cost-efficient production base targeting the global market.

Furthermore, Toshiba aims to enhance its presence by collaborating with the JSW group, with which it can cooperate in material procurement and in the marketing of the equipment.

JSW is a leading industrial conglomerate, which has subsidiaries such as steel company JSW Steel Ltd and power producer JSW Energy Ltd. The group is now promoting the production and the distribution of steel products for power generation equipment. Toshiba and JSW share a common goal in their business enhancement, which led to the latest agreement on the joint venture company.


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