Amalgamations gains full control of India Pistons

Diversified manufacturing group Amalgamations has gained full ownership of group company India Pistons.

This was after Simpson & Co, another group company of Amalgamations, bought 30 per cent stake of US-based Federal-Mogul Corporation (FMC) in India Pistons for an undisclosed sum.

Simpson had previuosly held a 70 per cent stake in India Pistons, and was the majority promoter of the company along with US-based FMC.

The amicable parting of ways was primarily necessitated as both India Pistons and FMC had become direct competitors in the pistons market, after the latter acquired a 50.1 per cent stake in Goetze India last year and renamed it Federal-Mogul Goetze India (FMG).

With this final stake divestment, India Pistons will become a wholly-owned subsidiary of Simpson & Co.

Even as it exits India Pistons, FMG is in the process of reorganising its Indian operations and shifting certain product lines to India.

While filing for bankruptcy under Chapter 11 norms this year, the company is also reported to be planning a Rs 60-crore greenfield plant in Chennai for manufacturing brake and clutch friction sealants, which will be controlled by a new wholly-owned subsidiary for manufacturing and distributing sealants and gaskets for the automotive industry.

In the pistons manufacturing business since 1949, India Pistons has a major presence among OEMs, and is a single-point source for over 60 per cent of the supplier base for vehicle and engine manufacturers in India.

India Pistons, which is expected to reach a turnover of Rs 410 crore in 2008 financial year, has a significant share in the aftermarket as well.

It is planning substantial investments in expansion projects to increase capacities.

A Sivasailam, chairman, Amalgamations, said the company had also concluded an agreement for technical collaboration with major automotive supplier MAHLE Gmbh of Germany.

This is expected to position the company better in the growing components market, particularly for pistons for advanced engine designs, and will cover the exchange of technical know-how on MAHLE's piston technology for advanced applications such as Euro III and Euro IV emission norms.