Ammann partners with Indian manufacturer
By Helen Wright19 December 2012
Road building equipment manufacturer Ammann is to acquire a 70% stake in Indian company Gujarat Apollo Industries’ plant and equipment business for € 44 million (US$ 58 million).
Gujarat Apollo is also a road construction equipment manufacturer, and Ammann said it was investing in its core business of asphalt mixing plants, road pavers, bitumen sprayers and compaction machines as part of a joint venture agreement. Gujarat Apollo reported a turnover of € 48 million (US$ 64 million) in 2011.
The joint venture company, Ammann Apollo India Private Ltd, will be responsible for the sale of the Ammann product range in the region. Gujarat Apollo will hold the remaining 30% stake in the joint venture.
The deal marks Ammann’s entry into the Indian market for road-building equipment. The manufacturer said it planned to expand its presence in asphalt mixing plants, asphalt pavers and compaction machines in India and the neighbouring markets.
Hans-Christian Schneider, who takes over as CEO of the Ammann Group in January, said, “The investment is an important step for the Ammann Group and represents part of a well-designed strategy to expand into the growing Indian market. We see our partnership in the joint venture enterprise as an opportunity to invest in product developments and innovations for markets both in India and around the world.”
The joint venture will be managed by the Gujarat Apollo management team along with personnel from Ammann. The agreement is set to be finalised by mid-April 2013.