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M. Ramesh

Chennai, Sept. 28 The Amalgamations group will buy out its US collaborator in India Pistons Ltd.

Simpson & Co of the group, which is the Indian promoter in India Pistons, on Thursday concluded an agreement to buy out the 30 per cent stake held by its collaborator, Federal Mogul Corporation of the US.

This was to be expected after Federal Mogul also turned out to be India Pistons’ competitor in India after picking up a majority stake of 50.01 per cent in Goetze (India) Ltd in 2002. The company has since been renamed as Federal-Mogul Goetze (India) Ltd.

With this, the Rs 410-crore India Pistons will become a wholly owned subsidiary of Simpson & Co, Mr N. Venkataramani, Managing Director of the company, told Business Line today.

He did not want to comment on the consideration, but the American press puts it at around $14 million (Rs 56 crore).

“We (Amalgamations group and Federal Mogul) decided to part on friendly terms,” Mr Venkataramani said.

Alongside, India Pistons has announced that it has concluded a technical collaboration agreement with Mahle GmbH of Germany. “We are pursuing further negotiations with Mahle for expanding the technical collaboration and licence agreement to wider dimensions,” Mr Venkataramani said, adding that he did not wish to elaborate on this statement further at this point in time. India Pistons is a pioneer in the development of power train systems of advance design.

Mr Venkataramani notes that the company has many firsts to its credit – such as the alfin piston, chrome plated oil rings, gas nitrided rings and tank pistons for defence.

Recently, it developed “cooling gallery pistons” for common rail direct injection engines and is a supplier of the product to Tata Motors.

Mahle GmbH is a global leader in pistons. Incidentally, the German company was the first collaborator of Goetze (India) Ltd, when the Indian company used to be called ‘Escorts Mahle Ltd’.

Under the agreement between Mahle and India Pistons, the Germans will give piston technology for advanced applications, such as those needed for Euro III and Euro IV engines.

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