Two manufacturing subsidiaries of Toyota Industries Corp succeeded in drastically reducing electricity cost. They introduced power electronics devices to their manufacturing plants and can recoup the investment within a year through the reduction of electricity cost, they said.

The two companies are Kirloskar Toyota Textile Machinery Pvt Ltd (KTTM) and Toyota Industries Engine India Pvt Ltd (TIEI), which were jointly established by Kirloskar Group (India-based industrial conglomerate) and Toyota Industries.

KTTM produces manufacturing equipment for spinning factories, and TIEI manufactures automotive engines and transmissions. Both of them have headquarters in an industrial complex in Bangalore, India, and are owned almost 99% by Toyota Industries.

A joint venture of Toyota Industries in Bangalore, India. The front gate of Kirloskar Toyota Textile Machinery (KTTM). There is Toyota Industries Engine India (TIEI) in an adjacent area.

Power quality in India troubles factories

In general, the quality of electricity is not good in India. The power grids of government-related power companies cause power outages and instantaneous voltage drop on a daily basis. Moreover, power supply stops for several hours a few times a month due to planned power outages, etc. Therefore, factories that continuously operate manufacturing equipment cannot use power supplied from a government-related power company as it is and, therefore, use private power generators.

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The cost of power generation using private power generators is Rs17-18/kWh, which is more than 100% times higher than the cost of power supplied by a government-related power company (Rs8/kWh). So, in general, it is more cost-effective to use private generators for a short time only as a backup power source and use a government-related power company as a main power source.

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