India, an important base for Wartsila's global business

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

20 Mar 2008

Finland-based Wartsila sees India as an important component in its global business plans. India is not only a market, but an important source of skilled manpower and source for equipment and components that support Wartsila's global operations, according to Rakesh Sarin, Managing Director, Wartsila India Ltd.Sarin, who is also on the board of global power plants management team of Wartsila Corporation, said India has emerged an important base for Wartsila's operations in all its three major areas of businesses — power plants, ship power, operation and maintenance.India accounts for about 150 million euros of the company’s global turnover of over 3.1 billion euros and is set to grow. Globally, Wartsila expects a 25 per cent growth in sales in the current year. Wartsila sees its gas-based power plants as having a major potential in India — gas availability is bound to improve and it is the fuel of the future because of its economy, says Sarin.Wartsila's advantage is the relatively high efficiency and fuel flexibility — gas to liquid, including biofuels. On power generation alone, it would be about 40 per cent and linked with the air conditioning capability using heat recovery, the efficiency is in the range of 70 per cent, according to Sarin.Wartsila hopes to promote the concept of peaking power and grid stability in India, he said. Its power plants are ideal in this niche and have proven their capability in the US. It is not just how much generation capacity but also when the capacity is available that is important.In India, gas engines are well entrenched but the concept of peaking power is yet to take off. Once gas is available through the grid that is bound to happen, he said. Also, Wartsila sees itself as a ‘wind power enabler’ says Sarin.In Tamil Nadu, for instance, over 2,500 MW of wind power is available for over three months a year. But this is only available under ideal wind conditions and at other times there could be a sudden shortfall in power generation. Wartsila’s power plants are capable of kicking in within 10 minutes to compensate. They can fill in the gap of wind or solar power.The buoyancy in the shipping industry is another major area for growth for Wartsila in India. Its ­5-million facility at Khopoli, Maharashtra, for controllable pitch propellers will commence production this year, he said. At this facility, Wartsila manufactures gearboxes for ships, nozzles, and assembles engines, reconditions and repairs engine parts and propeller blades.Wartsila also sources manpower and components from India, he said. The group has used Wartsila India's sourcing capability for a range of equipment such as transformers and castings for supply elsewhere, he said.