Goetze India, an €83.6 million (INR4.6 billion) manufacturer of pistons and piston rings, will over the next three years upgrade its facilities by investing €36.4 million (INR2 billion) to manufacture pistons with technology sourced from Federal Mogul.
This is a technology transfer agreement, which allows the Indian company to manufacture the latest in pistons using Federal Mogul-developed technology. The investment is for upgrading the manufacturing facility and to introduce the technology, and has been raised through a combination of internal accruals and borrowings.
The new technology will allow Goetze to make pistons for Euro III- and Euro IV emissions-compliant engines. The move will help the company to retain its current business and to clinch new deals as Indian vehicle makers upgrade their engines to meet stricter emission controls. Goetze India’s Euro III products have already been validated by domestic OEMs Tata Motors , Ashok Leyland and Maruti for new engines under development.
The company’s two plants at Patiala and Bangalore have been manufacturing piston rings and sintered parts in collaboration with Mahle . Federal Mogul holds a 26% stake in Goetze so new business will come through the technology transfer deal. Mahle has another collaborative venture in India called Mahle Migma.
Deepesh Rathore / Tilak Swarup