Auto component maker Avtec has announced a strategic partnership with Swiss firm Assag, a leader in gear technology.
Under the agreement signed by Mr Prabhakar Kadapa, CEO of Avtec, and Mr Stefan Schoen, CEO, Assag, the CK Birla Group company will invest in Assag in return for equity in the Swiss firm. The tie-up is with effect from May 21, 2012.
Post the investment, Mr Schoen shall continue to lead the organisation. Additionally, Avtec has appointed Mr S. Muralidhar, a manufacturing management professional to the board.
Mr C.K. Birla, Chairman of Avtec, said, “I am delighted with the value-added synergy which will transform both the organisations, offer end-to-end solutions to the customers and provide knowledge enrichment and greater career progression opportunities to the employees.”
Assag has several patents to its credit and is a solution provider for high precision and high quality gears, while Avtec is strong in application engineering, powertrain aggregate and component production. So, the business areas complement each other and create synergies, the company said.
It will give customers a one-stop solution from concept to design, prototyping and series production.
Private equity firm Actis holds 30 per cent equity in Avtec. The component maker supplies to General Motors, Ford, Renault-Nissan, Daimler and CAT. The CK Birla Group also has other companies in the auto sector, such as Hindustan Motors and bearings maker NBC, apart from interests in sectors such as cement, paper, consumer electricals and software.