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Simpson buys out Federal Mogul stake in IPL

CHENNAI: Simpson & Co. Ltd., a member of the Amalgamations Group, has bought out Federal Mogul Corporation of the U.S. in India Pistons Ltd. (IPL) for an undisclosed sum. Simpson & Co. already owns 70 per cent in India Pistons.

Following the buy-out, India Pistons has now become a wholly owned subsidiary of Simpson & Co.

A. Sivasailam, Chairman, Amalgamations Private Ltd., said in a release that India Pistons had also concluded a technical collaboration and license agreement with MAHLE GmbH of Germany, a global automotive supplier with production facilities in several parts of the world. It is also a leader in the world for pistons. It is a major supplier of rings and other engine systems for leading automobile manufacturers.

Under this agreement, India Pistons will get MAHLE piston technology for advanced applications, including Euro III, Euro IV emission norms upwards.

Mr. Sivasailam said the pact with the German company was aimed at positioning India Pistons advantageously in the growing component market, particularly for pistons for engines of advanced design. “The technical support from MAHLE will reinforce Indian Pistons’ technology base enabling it to offer contemporary solutions,” the release quoted him as saying. Indian Pistons was also pursuing further negotiations with MAHLE for expanding the association to wider dimensions, the release added.

India Pistons was formed in 1949 and soon thereafter commenced the manufacture of pistons for the first time in the country. Over the years, it had built up an enviable reputation for its technological excellence and the quality of its products, he said.

“IPL and its associates are expected to reach a turnover of Rs. 410 crore for the year 2007-08 and are well poised to take advantage of the increasing growth opportunities in both the domestic and international markets. Substantial investments in expansion projects designed to increase capacity and capabilities are also underway,” the release quoted him as saying.

India Pistons has a major presence among the original equipment manufacturers. It has a significant share in the aftermarket as well, the release added.

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