AVTEC, a CK Birla Group company, and ASSAG of Switzerland have entered into a strategic partnership agreement with effect from May 21, 2012. Under the agreement, AVTEC could participate in the equity of ASSAG and on the governing board.
Mr. Prabhakar Kadapa, CEO, AVTEC, and Mr. Stefan Schoen, CEO, ASSAG, signed the agreement at Dudingen, Switzerland.
ASSAG is a pioneer in face gear technology with several patents to its credit and a solution provider for high precision and high quality gears. AVTEC is very strong in application engineering, powertrain aggregate and component production. The know-how of ASSAG and the capabilities of AVTEC complement each other and create synergies.
This partnership would reinforce AVTEC’s commitment to customers as a one-stop solution from concept to design, prototyping and series production. It would bring to customers better technology, world class quality, and on-time delivery at competitive prices.
Mr. Stefan Schoen continues to lead the organization along with Mr. S. Muralidhar, an experienced manufacturing management professional, who will be joining him in due course.
Commenting on the occasion, Mr. C.K. Birla, Chairman of AVTEC Ltd., said: “I am highly delighted with the value added synergy which will transform both the organizations, offer end-to-end solutions to the customers and provide knowledge enrichment and greater career progression opportunities to the employees.”
ACTIS, a private equity firm, holds 30 per cent equity in AVTEC. Commenting on this acquisition, Mr. J.M. Trivedi, ACTIS’s Head of South Asia and a member on the AVTEC Board, said: “We believe this acquisition is a highly complementary fit to AVTEC’s capabilities in the powertrain business. As a long-term partner in AVTEC’s growth, ACTIS is pleased to support AVTEC’s initiatives to expand its technology base and industry footprint.”