New Delhi, Sep 27 (IANS): Japanese diversified conglomerate Hitachi Tuesday said that it will form a new joint venture (JV) company with SFO Technologies for providing state of the art control systems for thermal power plants.

The new company - Hitachi NeST Control Systems - to be established in October and be based in Bangalore, would engineer, manufacture, commission and service advanced control systems for thermal power plants.

According to the Japanese conglomerate, its share in the new company would be 70 percent and that of SFO Technologies 30 percent.

"Based on this agreement, Hitachi and SFO Technologies will promote to expand their control systems businesses in India," the company said in a statement.

The statement that the new company would benefit from Hitachi's cutting-edge control technologies and SFO Technologies' highly skilled employees and nationwide sales and service network in India.

The company said that it expected the JV to achieve sales worth Rs.1.5 billion by 2014-15.

"Hitachi NeST Control Systems is targeting sales of approximately 1.5 billion Indian rupees (2.6 billion yen) in the fiscal year ending in March 2015," the statement said.

The company's optimism in the success of its new JV is based upon its assessment that the power sector would grow by leaps and bounds in India and would be led by thermal power plants than any other energy source.

Earlier the company made its foray into the power sector by making investments in BGR Energy Systems to manufacture super-critical turbines, generators and boilers in Chennai.