The Hindu Business Line : Federal-Mogul ups stake in Goetze to 50 pc

Federal-Mogul Corporation on Monday announced the acquisition of additional shares to own the majority stake of its long-standing joint venture, Goetze (India) Ltd (GIL).

The transaction, which increases Federal-Mogul's share in GIL to 50.1 per cent from 25.4 per cent, supports the company's growth strategy by expanding its presence in India, a key market for its global automotive products and aftermarket business, a company release said.

The company bought the additional stake from Mr Anil Nanda, now non-executive Chairman of Goetze for Rs 138.6 crore, at a price of Rs 222.50 per share.

"Federal-Mogul's increased investment in GIL is a key part of our strategy to drive global profitable growth by providing our leading technology, and world-class quality products and services in India, one of the most dynamic and growing economies," said the Federal-Mogul Chairman, President and Chief Executive Officer, Mr José Maria Alapont.

"Developing best-cost capabilities and increasing our manufacturing footprint in India will enable us to better serve both new and existing customers in domestic and global markets."

Headquartered in New Delhi, GIL has three units in India — in Patiala, Bangalore and Bhiwadi - with nearly 5,000 employees. GIL's 2005 net sales exceeded Rs 430 crore.

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