In a filing to the BSE, the Indian firm said it has signed the agreement with PT Prima Layanan Nasional Enjinring (PLNE) to "manufacture and commercialise high voltage (HV) and extra high voltage (EHV) switchgear in Indonesia".
The JV will be owned 51 per cent by Crompton Greaves (CG) and 49 per cent by PLNE and will be a part of CG's global organisation, it added.
CG Chief Executive Officer and MD Laurent Demortier said: "This JV is important milestone in CG's expansion strategy. We believe our collaboration will allow the development of a new series of products well suited for the Indonesian and South East Asian markets."
Under the agreement, CG will transfer technology to the JV for five years to produce entire range of switchgears -- from 70kV to 500kV -- and will be localised through CG's new base in Indonesia.
Crompton Greaves said production is expected to start in the next 24 months.
"The products manufactured in the new facility in Indonesia will be distributed through CG's marketing network in the South-East Asian markets and the Pacific Region," the filing said.
PLNE is an engineering company owned by Perusahaan Listrik Negara, which is an Indonesian government owned sole electricity utility firm.
The estimated market base of HV and EHV switchgear equipment in South-East Asia and the Pacific region is predicted to exceed USD 500 million in the coming years, CG said in the filing.
