Federal-Mogul Corp. (USA) has upped its ownership stake in Goetze India to 74.98% from 50.1%. In late 2006, F-M spent $31 million to bump its share from 25.4% to 50.1%, which allowed it to include Goetze's assets and results with its own as a wholly-owned subsidiary renamed Federal-Mogul Goetze India (FMG).
Founded in 1954, Goetze India began as a joint venture of Anil Nanda Group and F-M. Today, Goetze is the largest domestic manufacturer of piston rings and pistons, with capacity reportedly exceeding 10 million pistons per year and 55 million piston rings per year.
The company's primary markets are OEM manufacturers in India. Goetze products are employed by manufacturers of gasoline and diesel engines used in motorcycles, three-wheelers, automobiles, light trucks, heavy-duty trucks, industrial and agricultural applications. Beyond pistons and rings, Goetze also produces cylinder liners, light alloy castings and miscellaneous related sintered products.
In addition to the Indian OEM market, Goetze also has a small but growing presence in the international OEM marketplace and global aftermarket.
Employing more than 7,000 workers, Goetze has plants in Patiala (pistons, rings, cylinder liners and engine castings), Bangalore (pistons, piston rings and small-end piston pins), and Bhiwadi (miscellaneous sintered products).
When F-M boosted its ownership to just shy of 75%, Goetze had been planning to raise a much-needed Rs 1.3 billion (USD $25 million) via a rights issue priced at Rs 56 on the Bombay exchange.
The reason F-M's holdings remain at 74.98% is because BSE stock exchange regulations require that F-M must make an open offer to buy all Goetze shares once it owns 75% or more.
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