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Neha Kaushik

New Delhi , Aug. 29

GOETZE (India) Ltd, one of the largest manufacturers of pistons and piston rings in the country, plans to to invest about Rs 200 crore over the next three years for introducing a new technology sourced from American auto components giant Federal Mogul (FM).

The Anil Nanda-promoted company has signed a technology agreement with Federal Mogul which allows use of FM technology for manufacture of contemporary pistons.

"The Rs 200 crore will be used not only to introduce the technology but also towards adapting the existing lines at our facilities to it. The amount will come through a combination of internal accruals and borrowings," a Goetze official told Business Line.

The company's plants for manufacturing of pistons and piston rings are at Patiala and Bangalore.

The introduction of FM technology will strengthen Goetze's capabilities to manufacture Euro III and Euro IV pistons. According to market analysts, the move will also help generate new business as all automotive engines in the coming years would require to be Euro III compliant.

Goetze has been manufacturing pistons based on know-how from the Germany-based Mahle. Goetze, which had a sales turnover of Rs 460 crore in the last fiscal, has an existing technology agreement with FM for piston rings and sintered parts. Federal Mogul also holds about 26 per cent stake in Goetze India. The $5.5-billion Federal Mogul is a leading manufacturer of pistons, piston rings and sintered parts, and is present in 29 countries.

More Stories on : Automobile Components | New Projects

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