Stana­dyne buys Amal­ga­ma­tions stake in In­dian joint ven­ture

The Financial Express - - COMPANIES - Fe Bureau

Chen­nai, March 28: Stana­dyne, the US-based global fuel in­jec­tion sys­tems de­signer and man­u­fac­turer with fa­cil­i­ties in Chen­nai, on Mon­day an­nounced that it has com­pletely bought out its joint ven­ture part­ner The Amal­ga­ma­tions Group in Stana­dyne Amal­ga­ma­tions Pri­vate Lim­ited for an undis­closed sum. In a mu­tu­ally agreed upon buy­out, Stana­dyne ac­quired the re­main­ing eq­uity in the joint ven­ture, which was for med in 2001 to bring cleaner, more ef fi­cient diesel fuel sys­tems and tech­nolo­gies to the In­dian mar­ket, said a com­pany re­lease here.

With the change in own­er­ship, the busi­ness in In­dia, for mally known as Stana­dyne Amal­ga­ma­tions Pri­vate Lim­ited, will be­come Stana­dyne In­dia Pri­vate Lim­ited. Stana­dyne and The Amal­ga­ma­tions Group plan to con­tinue to work to­gether as cus­tomers and sup­pli­ers to one an­other in or­der to con­tinue serv­ing In­dia's diesel en­gine mar­ket.

“We en­tered the In­dian mar­ket 15 years ago with one of the best part­ners we could ask for, The Amal­ga­ma­tions Group,” said Stana­dyne Near East manag­ing di­rec­tor San­jay Chadda.

“The re­sults have far ex­ceeded our ex­pec­ta­tions in ter ms of sales, but also work­ing with the wel­com­ing com­mu­nity of Chen­nai and with some of In­dia’s most tal­ented au­to­mo­tive pro­fes­sion­als,” he added.

Stana­dyne op­er­a­tions and pro­duc­tion will re­main at the Chen­nai fa­cil­ity, un­der the man­age­ment of San­jay Chadda, who ear­lier this year, an­nounced a multi-year in­vest­ment in the Chen­nai op­er­a­tions.

The in­vest­ment will help in­crease man­u­fac­tur­ing ca­pac­ity for new prod­ucts like the emis­sions re­duc­ing EcoForce diesel fuel pump, which was an­nounced in mid-2015. Chadda ex­pects sales to es­ca­late in In­dia in the next few years and sees Chen­nai as a crit­i­cal com­po­nent of meet­ing those ex­pec­ta­tions.

It may be re­called that dur­ing mid-2015, Stana­dyne an­nounced an in­vest­ment of R100 crore into the fa­cil­ity to scale up the pro­duc­tion ca­pac­ity of fuel sys­tems from 90,000 to 2.5 lakh units a year.

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