RSS6791 Ammann and 7030 Gujarat Apollo Industries Ltd (GAIL) have signed binding agreements which will see Ammann Group pay around €44 million to acquire a 70% share in the Indian company’s plant and machine business.
Said to be the Indian market leaders in road construction equipment, GAIL’s core products include road pavers, asphalt mixing plants, bitumen sprayers and compaction machines. The joint venture is seen by the Ammann Group as underscoring its global growth strategy while, crucially, heralding its entry into the Indian road-building equipment market, tipped for strong growth thanks to the government's political alignment and the continued expansion of the road network throughout the country.
The planned joint enterprise – to be known as Ammann Apollo India Private Limited - will be responsible for the sale of the Ammann product range in the region, while the Ammann Group continues to operate globally.
Subject to the approval of the shareholders of the market-listed GAIL enterprise, the Switzerland-based Ammann Group intends to acquire an interest in an Apollo subsidiary by means of a share capital increase. The joint venture will be managed by the Apollo Group management team supplemented by personnel from the Ammann Group. The agreement confirming the strategic partnership is expected to be finalised by mid-April 2013 on condition and receipt of the necessary approvals required under corporate and regulatory law.
"The investment is an important step for the Ammann Group and represents part of a well-designed strategy to expand into the growing Indian market. We see our partnership in the joint venture enterprise as an opportunity to invest in product developments and innovations for markets both in India and around the world", said Hans-Christian Schneider, deputy chief executive and, as of 1 January 2013, chief executive of the Ammann Group.
Anil Patel, founder of the Apollo Group, said: “We are pleased to be entering into this joint venture with the Ammann Group. Merging the two corporations will result in a very effective partnership with a significant increase in value for shareholders and improved prospects for growth.”
Said to be the Indian market leaders in road construction equipment, GAIL’s core products include road pavers, asphalt mixing plants, bitumen sprayers and compaction machines. The joint venture is seen by the Ammann Group as underscoring its global growth strategy while, crucially, heralding its entry into the Indian road-building equipment market, tipped for strong growth thanks to the government's political alignment and the continued expansion of the road network throughout the country.
The planned joint enterprise – to be known as Ammann Apollo India Private Limited - will be responsible for the sale of the Ammann product range in the region, while the Ammann Group continues to operate globally.
Subject to the approval of the shareholders of the market-listed GAIL enterprise, the Switzerland-based Ammann Group intends to acquire an interest in an Apollo subsidiary by means of a share capital increase. The joint venture will be managed by the Apollo Group management team supplemented by personnel from the Ammann Group. The agreement confirming the strategic partnership is expected to be finalised by mid-April 2013 on condition and receipt of the necessary approvals required under corporate and regulatory law.
"The investment is an important step for the Ammann Group and represents part of a well-designed strategy to expand into the growing Indian market. We see our partnership in the joint venture enterprise as an opportunity to invest in product developments and innovations for markets both in India and around the world", said Hans-Christian Schneider, deputy chief executive and, as of 1 January 2013, chief executive of the Ammann Group.
Anil Patel, founder of the Apollo Group, said: “We are pleased to be entering into this joint venture with the Ammann Group. Merging the two corporations will result in a very effective partnership with a significant increase in value for shareholders and improved prospects for growth.”
