Stanadyne buys Amalgamations stake in Indian joint venture
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.